Doocy uses softball interview to wrongly blame increased costs on health care reform

Doocy: Reducing health care costs “all sounds great, but the new health care law may actually be having the exact opposite effect.” On the October 1 edition of Fox News' Fox & Friends, Doocy interviewed Republican congressional candidate James Milano. During the interview, Doocy advanced the false claim that a report projecting a rise in health care costs for the upcoming year was due to the effect of passing health care reform. From Fox & Friends:

PRESIDENT OBAMA [video clip]: Finally, my proposal would bring down the cost of health care for millions -- families, businesses, and the federal government.

DOOCY: Well, that all sounds great, but the new health care law may actually be having the exact opposite effect. According to a new study by Hewitt Associates, U.S. employees will pay nearly $500 more out of their own pockets for health care in this next year, 2011, than they are paying right now. Researchers claim it's partially due to the new health care laws passed by Congress. With us right now is Dr. James Milano, a New York City doctor who is running for Congress with the hope of repealing the health care law. His opponent, Gary Ackerman, declined to appear on the show. Good morning to you.

MILANO: Thank you.

DOOCY: What happened?

MILANO: Well, I think the intention was to provide universal coverage for everyone, but in fact, the numbers that were used were actually a form of fuzzy math that's been brought up in the past. To think that you're going to bring down the cost of health care while -- while increasing or bringing 30 million more people on to the health care rolls was just faulty reasoning. In fact, they find now that in addition to cutting 500 billion from our senior citizens, which they should not be made to suffer for the -- for the --

DOOCY: Sure.

MILANO: -- the whole idea of people such as Gary Ackerman, Democrats who tried to push through an agenda to give the president a victory, something he sorely needed at the time.

DOOCY: Sure. But you know what, Doctor? There were estimates that it was going to cost more, and people who were promoting it were poo-pooing it, saying, no, no, no, costs are going to go down. And once people realize how good this thing is, everything is going to be great. We've got some statistics, for instance, companies, the premiums they pay per employee rising. Take a look at this -- for the companies, it's going to go up close to 800 bucks, and then we've got another detail -- and I mentioned it a moment ago -- out of pocket for employees, another 500 bucks.

In fact, report's author says increase is primarily due to aging workforce, advancements in medical technology

Chicago Tribune: Cost increases “primarily because [of] advances in medical technology and the increasing use of medical services by an aging population.” A September 26 Chicago Tribune article reported that projected health care cost increases projected in the report Doocy mentioned are primarily due to advances in medical technology and an older workforce. The article reported that the increasing costs associated with an aging workforce have been exacerbated by the economic downturn because businesses “are hiring fewer younger people,” whose premiums typically “absorb the costs of older employees.” The article further reported that according to the report by Hewitt Associates, which produced the report by “using data from 350 major employers and more than 14 million health plan participants,” health care reform is only a small and temporary part of the increase. From the Tribune:

Overall health care costs continue to rise 6 percent to 8 percent annually, primarily because advances in medical technology and the increasing use of medical services by an aging population.

And in the wake of the recession, employment trends also are affecting health care costs: Companies are hiring fewer younger people, so premiums paid by this segment of the working population who typically use fewer health services are not absorbing the costs of older employees who do.

“An older population tends to have chronic conditions like diabetes,” [Hewitt Associates principal John] Vlajkovic said. “And when your hiring rates have slowed, you are not bringing in a younger work force.”

Premiums are being affected by the implementation of the new federal health care law, but the impact is expected to be minimal.

“Health care reform has added to the cost burden, but that is only an additional percent or two,” Vlajkovic said.

Tribune further notes that health care law eventually “could temper cost increases for everybody.” The article also reported that once the health care law is fully implemented, it “could temper cost increases for everybody once the more than 30 million uninsured have coverage because it will spread risk over a larger population.” From the Tribune:

Industry analysts have said the health law could temper cost increases for everybody once the more than 30 million uninsured have coverage because it will spread risk over a larger population. But that will take time. Although several major new consumer benefits started last week, this broadened coverage will not go into effect until 2014.

“Reform creates opportunities for meaningful change in how health care is delivered in the U.S., but most of these positive effects won't be felt for a few years,” said Ken Sperling, Hewitt's health care practice leader. “In the meantime, employers continue to struggle to balance the significant health care needs of an aging work force with the economic realities of a difficult business environment.”