GOP Leaps On Study Of Rising Health Care Costs

DAVID ESPO

WASHINGTON (AP) — Overall spending on health care would rise as a result of legislation approved a week ago by the House, and billions of dollars in projected savings contained in the measure will be difficult to maintain, according to a report by a top official at the agency that oversees Medicare.

The legislation would expand insurance coverage to an estimated 32 million people who now lack it, according to the report, creating a demand for services that "could be difficult to meet initially ... and could lead to price-increases, cost-shifting and/or changes in providers' willingness to treat patients with low-reimbursement health coverage."

The analysis was issued by Richard Foster, the chief actuary at the Centers for Medicare and Medicaid, which is part of the Health and Human Services Department. The study was conducted at the request of House Republicans, who quickly tried to turn it against the Obama administration.

Rep. John Boehner of Ohio, the House GOP leader, issued a statement saying the study "confirms that this bill violates President Obama's promise to 'bend the cost curve.' It's now beyond dispute that their bill will raise costs."