Health Care Spending Soars 9.9% On Obamacare In Q1 –

Spending on cars and other durable goods rose 0.8%, the weakest since Q2 2011. But consumer outlays on health care leapt 9.9%, the most going back to at least early 1999. That ramp up likely reflects the impact of ObamaCare . Previously uninsured people now have to pay premiums. Others who previously had insurance may have bought more expansive coverage with subsidies. Early evidence suggests that exchange enrollees at least the early ones are using more medical care than typical patients. This isn’t what President Obama and other Affordable Care Act supporters have said would happen. They’ve argue that the law would rein in medical costs, even while providing massive subsidies to expand coverage to millions of people. The White House had touted recent data showing slowing health care costs, though that trend preceded ObamaCare and was global. The GDP report offers the clearest evidence yet that, at least in the short term, ObamaCare is having a big impact on spending. ObamaCare costs may be crowding out other spending, especially for moderate income families.

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