Study: Administrative Costs Growing Under Obamacare

Healthcare.gov
Healthcare.gov / AP

A new study shows overhead costs are rising at a shocking level under Obamacare, the Hill reports.

The administrative costs for healthcare plans are expected to explode by more than a quarter of a trillion dollars over the next decade, according to a new study published by the Health Affairs blog.

The $270 billion in new costs, for both private insurance companies and government programs, will be "over and above what would have been expected had the law not been enacted," one of the authors, David Himmelstein, wrote Wednesday.

Those costs will be particularly high this year, when overhead is expected to make up 45 percent of all federal spending related to the Affordable Care Act. By 2022, that ratio will decrease to about 20 percent of federal spending related to the law.

According to the study’s authors, "the extra administrative costs amount to the equivalent of $1,375 per newly insured person per year."