Have you ever wondered how anyone could possibly think that the Patient Protection and Affordable Care Act (PPACA) would lead to less health care spending?
Consider that the act is expected to (a) insure more than half the uninsured, (b) push most people with private insurance into more generous plans and (c) give just about everyone more generous preventive care. Doesn’t more insurance always mean more spending?
A big part of the answer is a little known change in PPACA on its way to final passage. In an obvious effort to keep the bill’s cost under control, lawmakers zeroed out all the funding for new doctors, nurses and other paramedical personnel. It doesn’t matter what extra benefits are promised if there is no one to deliver on the promises! Hence, the CBO’s low-ball spending estimate.
The problem is that groups with a special interest in health care — particularly the elderly and the disabled — noticed this sleight of hand and became alarmed. With a severe doctor shortage in the making, if your plan pays well below market rates you’re at risk of being pushed to the end of the waiting lines. And this has created a political hot potato for the White House.

