A Tale of Two Reports: Fox Doesn't Trust CBO On Obamacare Costs, Embraces Discredited Survey Instead

Blog ››› ››› ALEXANDREA BOGUHN

Fox News attempted to discredit a Congressional Budget Office report that estimated lower costs for the Affordable Care Act, while it also embraced a dubious survey claiming that health care premiums are skyrocketing.

On the April 14 edition of Fox News' Your World, host Neil Cavuto brought on Fox contributor and serial health care misinformer Betsy McCaughey in order to baselessly attack the CBO's latest projections, which show that the ACA will cost $104 billion less over 10 years than previously projected and that premiums for the most popular plans under ACA are expected to rise only "slightly" for 2015. McCaughey unleashed a series of already debunked lies about the health care law. After Cavuto called the CBO's savings estimates "deceiving," Mccaughey agreed and denied there would be any savings,asserting that it is actually "a cost-shifting":

CAVUTO: So what is the CBO looking at? It's limiting it to what they expect it to be, that millions more will sign up under these exchanges, and I guess because of subsidies and special breaks see their premium increases actually stabilize. Do you buy that?

McCAUGHEY: Well, no, I don't buy that. I think the insurance company executives know exactly what they're talking about, and they're worried about the public pushback from these huge premium hikes ahead. That's only part of the bad news. You're also going to see a million people or more default. In other words, they've paid their first premium, but when they discover what it really means to pay a three or five thousand dollar deductible on their plan, they go to their doctor again and again and have to pay full freight even though they're paying their premium, they're going to stop paying their premium.

Another big problem ahead is the 25 to 30 million people who currently get on the job coverage who are going to lose it in the coming months when their employers realize that they're not going to be able to renew those old plans and they're stuck between the very costly Obamacare plans or sending their workers and their families onto the exchanges. And finally, you're going to hear a lot of desperation from cancer patients when they discover these Obamacare exchange plans won't let them go to any specialty cancer hospitals, even though the data show that, for example, women with ovarian cancer live longer when they're treated at a high-volume cancer hospital.

CAVUTO: But the argument that the CBO is raising that all those problems notwithstanding -- they're big ones, it's like saying "Outside that, Mrs. Lincoln, how was the show?" -- they're still going to see premiums for those in these exchanges go down. But what I did look at in the CBO study, it's all dependent on these special write-offs and allowances and subsidies that those in a certain income group get to give you what seems like a deceiving savings.

McCAUGHEY: That's right, and I'ts really not a savings, Neil. It's just a cost-shifting.

In contrast to Fox's attack on the CBO report, earlier in the day it uncritically promoted a discredited Morgan Stanley survey claiming "rate acceleration" in ACA premiums. Correspondent Jim Angle appeared on both Fox's Happening Now and The Real Story With Gretchen Carlson to hype fears that fit into the channel's narrative that Obamacare will causes insurance premiums to soar. However, the report Angle cited has been discredited for its absence of methodology and small survey sample. Even Fox News' sister organization, Fox Business, pointed out problematic elements of the study, noting that "some states had only one broker respond to the Morgan Stanley survey so the results may not be reliable."

Fox News' willingness to dismiss a report from the respected and nonpartisan CBO while embracing a flawed study is just the latest effort in Fox News' struggling crusade to discredit the ACA by stoking fears of negative impact.

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