ObamaCare sticker shock

Supporters of ObamaCare claimed that opponents of ObamaCare were exaggerating substantially higher premium claims.

Claims from such organizations as the Heritage Foundation:

Our research finds that for many states, the insurance on health exchanges will cost more than existing insurance. This study illustrates that the general experience for individuals shopping on the exchange is that of increasing premiums from what was available to them prior to implementation of the exchanges. Many families and individuals will face this reality as they apply for coverage, and the implications of experiencing sticker shock are important to consider if enough people choose not to sign up for coverage for various reasons. …

Individuals in most states will end up spending more on the exchanges. It is true that in some states, the experience could be the opposite. This is because those states had already over-regulated insurance markets that led to sharply higher premiums through adverse selection, as is the case of New York. Many states, however, double or nearly triple premiums for young adults. Arizona, Arkansas, Georgia, Kansas, and Vermont see some of the largest increases in premiums.

Guess who was right? According to Wisconsin Reporter:

The media and liberal organizations hounded the Office of the Commissioner of Insurance last month for disclosing information saying premiums could increase as much as 124 percent under Obamacare.

Not so fast.

A more thorough accounting of insurance premiums from the federal government, tucked away at healthcare.gov, suggests OCI was right.

“We only gave a percentage; but (premiums released by Department of Health and Human Services) compares closely to what we were talking about,” said J.P. Wieske, an OCI spokesman. “The data is so similar that it’s likely they’re sourcing what we were looking at.” …

The Affordable Care Act implicitly subsidizes the indigent and sick by hiking premiums for the young and upper middle-class. It also forbids insurers from denying people with pre-existing health conditions, such as stroke or cancer patients, and it sets a baseline of benefits that all health plans must offer. A 27 year-old single man, for instance, will be covered for maternity care starting in 2014.

In Dane County, someone who is 27 in 2013 could pay $134 a month for a plan with a $2,000 deductible. A bronze plan — covering 60 percent of medical costs — with the same deductible would cost about $300 a month under Obamacare.

According to ehealthinsurance.com the lowest rates for a 27 year-old living in Madison before Obamacare was $38 a month. Post-ACA, the lowest rate listed is $123 a month.

Those who claim that preexisting conditions weren’t covered before but now will be fail to add that that could have been done simply by passing a law that required health insurance companies to cover preexisting conditions. That would increase costs for everyone else, of course, but that’s what those trying to buy ObamaCare are finding out anyway. You cannot expect to increase the cost of providing a service and not expect to increase the cost of purchasing that service.

 

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