White House cheers news that health law not adding to healthcare costs

The Obama administration on Monday cheered new evidence that the president's healthcare reform law isn't making healthcare more expensive.

A new report from the Medicare actuaries found that healthcare spending grew by a near record low of 3.9 percent in 2010, with the health law contributing only 0.1 percentage points. The increase in National Health Expenditures is similar to the 3.8 percent increase in 2009, which saw the lowest rate of growth since the actuaries started keeping track in 1960.

During the 2008 campaign, Obama said U.S. families would save $2,500 on their health insurance premiums thanks to his proposal. Republicans on Capitol Hill and the presidential campaign trail have relentlessly pointed out that that promise isn't being met - premiums increased 4.4 percent in 2010 - but the White House says its policies won't all kick in until 2014 and are already making a difference.

"The report released today found no spike in health care costs due to health reform," White House Nancy Ann DeParle deputy chief of staff wrote in a blog post. DeParle added that the law's reforms — including anti-fraud measures, care coordination and disease prevention — are "helping to keep health care cost growth low."

The increase in premiums is smaller than in 2009, when it grew by 5.7 percent. Claims paid out in 2010 saw an even slower increase of just 3.7 percent, however, the first time in seven years that the growth in premiums grew faster than the growth in claims paid out as Americans cut back on visits to the doctor and opted for less expensive medical treatments because of the recession.

In her blog post, DeParle points out that the law's medical loss ratio requirement will ensure that insurers give rebates back to their customers if they collect too much in premiums.

DeParle points out, "Starting in 2011, insurance companies are required to publicly disclose and justify any premium increases larger than 10 percent. Many states have the authority to reject unreasonable premium increases and the Affordable Care Act gives states $250 million to strengthen their rate review programs. Additionally, insurers are required to spend at least 80 percent of your premium dollars on health care expenses instead of overhead and profits."

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