One of my Affordable Care Act pet peeves is the claim that it is saving us money. As an example Fortune said it this way in the article, U.S. Will Spend $2.6 Trillion Less on Health Care Than Previously Estimated.

The United States will save about $2.6 trillion on health care expenses over a five-year period compared to initial projections made right after the passage of the Affordable Care Act.

Cost Savings Or A Bad Estimate

The trick to understanding the Affordable Care Act cost savings is the qualification, “than previously estimated”. If there are actual health insurance savings than we should see the cost curve bend. When we use 2011 as our benchmark health insurance inflation metrics tells us a different story. The cost curve did not bend. Health insurance inflation was largely unaffected.