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  • Side Effects: Obamacare Raises Your Premiums

    Health Insurers Plan Hikes. That’s the headline of today’s Wall Street Journal story which reports: “Health insurers say they plan to raise premiums for some Americans as a direct result of the health overhaul in coming weeks, complicating Democrats’ efforts to trumpet their signature achievement before the midterm elections. Aetna Inc., some BlueCross BlueShield plans and other smaller carriers have asked for premium increases of between 1% and 9% to pay for extra benefits required under the law, according to filings with state regulators.”

    It’s exactly what conservatives predicted. While the Congressional Budget Office (CBO) did estimate that Obamacare would cause health insurance premiums to rise, conservatives correctly pointed out that the CBO’s estimates were wildly optimistic. James Capretta wrote at the time:

    For weeks, experts have been warning that the Senate legislation would lead to serious “adverse selection” in the individual and small-group insurance markets. Adverse selection occurs when, on average, the pool of insured lives becomes less healthy over time compared to a relevant comparison group. The Senate bill would require insurers to take all comers, with heavily regulated rates. These rules would help those with chronic conditions get less expensive coverage. But they would also drive up premiums for the young and healthy.

    CBO argues that risk-selection problems will be mitigated by the presence of new insurance subsidies, penalties for those who don’t get coverage, a once-a-year enrollment window which will limit the opportunity to come back into insurance, and the tendency for people to comply with mandates even if they are costly. But, as others have shown, even with subsidies, the cost of coverage for many low and moderate wage families will be very substantial. Many people could reduce their costs if they paid the penalty instead of premiums and signed up with insurance only when they really needed it. Would the fact that they might have to wait a few months before getting insurance be enough to keep them in coverage all year? Hard to predict. In fact, as pointed out here, it appears that none of most-cited models used to estimate the impact of health-reform plans, including CBO’s, has an explicit capacity to calibrate insurance take-up rates based on the penalties imposed on those who go without coverage. Apparently, the premium estimates are based as much on judgment as analytics, and CBO’s judgment is clearly on the optimistic side.

    The WSJ is not the only outlet reporting that Obamacare is forcing insurance companies to raise premiums. The Los Angeles Times and Dallas Morning News also report rate hikes in their states, some as high as 16%. No wonder most Americans tell pollsters they support repeal of this intolerable act.

    Posted in Obamacare [slideshow_deploy]

    18 Responses to Side Effects: Obamacare Raises Your Premiums

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    2. Bill, Kansas City, M says:

      Just another Obama lie revealed.

    3. Slick - Nebraska says:

      I wish we could recall the EXACT words of the President during the prolonged health care bill discussion . . . there were soooooo many!!!

      If I am not mistaken I believe he said our taxes wouldn't "go up a single dime", that the cost of coverage would go down (and it does for those who never had insurance to begin with as well as the hospitals who treated the uninsured and absorbed the costs internally), and that without passage of the health care bill our insurance expenses would go through the roof. Taking those things into consideration, taxes expressly for health care probably won't go up THIS year, cost of coverage couldn't be less for those who never had it before so he was only wrong on the third! One out of three is a 66% SUCCESS rate!!!

      Everyone who has even an average amount of brain power KNEW this was nothing but a sham by the government to take control of our health care system. Total control over every aspect of our lives seems to be the goal, and so far their success rate in that area is about 110%.

      We should all be afraid, very afraid, if there isn't a major shift in November. Talk to your friends as well as your family . . . every vote counts!!!

    4. Scot,Indiana says:

      The law of intended consequences

    5. WHICH WAY says:


    6. Ben C. Ann Arbor, MI says:

      I have previously posted the fact that my health care insurance will cost more after I am sixty five than before.

      But to further expose our inept government consider this: in my business I am required to go through all kinds of excercises and procedures to insure identity protection for my clients. I received my Medicare Card yesterday and guess what my identificagtion number is on the card? You guessed it – my social security number. So, if my identity is stolen using the Medicare card as the vehicle for theft is the federal government liable? Not a chance. Obviously the problem with identity theft has not reached the hallowed halls of Congress.

    7. Drew Page, IL says:

      How could anyone be so stupid to believe that government mandated increases health insurance benefits and expansions of eligibility under those plans could be provided at no additional cost?

      These state and federal mandates, that increase health insurance benefits and eligibility, have been going on for at least fifty years. Each such mandate results in more coverage, which results in higher claims, which in turn requires higher premiums. This ain’t rocket surgery.

      The real hypocracy here is that after having issued all these mandates, those in government turn around and blame the insurance companies for costs going up. This hypocracy is compounded when the government annually increases the deductibles of Medicare Parts A and B, thereby reducing coverage forcing Medicare beneficiaries and their Medicare Supplement insurance carriers to pay more. When Medicare Supplement insurance premiums increase, there is the government once again labeling the insurance companies “greedy”.

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    9. Jeanne Stotler, Wood says:

      What did Pelosi say "Have to pass it in order to read it" We've been had. I never was in favor of this monstracity, the problem is that Insurance companies want HUGE profits, they want us to pay more and make less claims. I was just talking to my son and told him whenhe was little it was Hospital Insurance, it did not cover routine care. Insurance paid hospital bills, ER,x-rays, and a % of the Drs. fee, you paid the rest. Most people I knew had this, only those who were very poor and on welfare didn't have Ins. The business got out of hand and everyone wanted routine care covered, and all the Drs' fee, Ins. company CEO's wanted golden parachutes, huge retirement pack. fancy conferences at high costing resorts etc. Now it's time to pay the piper, we begged for more and we are going to get it, MOre premiums, more taxes and so on.

    10. tymtrvlr, Peoria says:

      Wake up America, the liberal marxist leftwing are pulling the wool over your eyes, they are all talking about distancing themselves from obama. It is a sham, to be voted back into office, then it will be the same old marxist sham, obamacare will be cast in concrete, all their failed policies will never have a chance to be repealed. Vote this garbage out, anyone who were complicit in this obama administration debacle. Arizona already screwed up by keeping mccain in office, we can't afford these rino's either. Once the elections are over, they will restart their work to dismantle America, stop it all in it's marxist tracks on November 2nd, begin the restoration of the American Dream, undo obamanomics, send the parasites back to their $#!tholes.

    11. Leon Lundquist, Dura says:

      Yeah, Conn Carroll, CBO Numbers are historically inaccurate. Multiply their stuff by ten on the down side, so insurance premiums will go up ten times as much as we think. What that portends is the collapse of the Insurance Industry. Gosh! Let's see! Is there any American Industry that is still functional? That is exactly who Obama and his Gimmie Gang will go after next. Notice that two years ago we had only two healthy Industries in our Country, Medicine and Energy. Woah! The Progressives went after them with such power and conviction, sufficient to actually destroy them to their foundations.

      Imagine our surprise when anybody who has any money (other than the Gang members) gets taken down. Having money? You must be guilty of something. Saving for example, we have punished saving nearly as much as Capital Formation. Finance is beset with unlawful competition from the Fed, zero percent interest is actually illegal like Zero Tolerance. (That's a RINO favorite!) "Picking winners and losers" is the kindest term for what is outright theft. Market manipulation, easy. The fundamental of Finance is attacked at its root and nobody but me has noticed, Interest is the life's blood of Capitalism. So that is legally Unfair Competition, the whole Fed staff belongs in jail. No really, they are in jeopardy of Prosecution! That is just one of the Gang Members not being prosecuted against the Oaths of Federal Prosecutors and the Securities And Exchange Commission. We could actually go after the SEC and sue them for Compounding and Refraining like Eric Holder.

      I'll bet you money that Republicans are not getting in on the Obamagraft and payoff money. Ask me, a gigantic settlement is due on a Class Action lawsuit naming all actual Citizens the Plaintiff and the entire Fed, Chairman and all, Defendants. Yay! Real Redistribution Of Wealth at last! Our Economic Problems would be over instantly. Come on, CBO, run these numbers why don't ya?

    12. Mrs. D, Idaho says:

      It is a fact in our case that our premiums are going up! Not 1% or even 9%! Our premium increase (through my husband's employer) last year was $55 per month. January 1st, 2011, it is going up $250 PER MONTH! And then if our premiums are taxed as income, we will be in a world of hurt! This has got to be stopped!!!

    13. Pingback: Quoteworthy: Notable Quotes, September 15, 2010 | DBKP - Death By 1000 Papercuts - DBKP

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    15. Nola, NY says:

      This is really what it boils down to: My family should pay higher premiums so that an old hippy who never payed a dime for health insurance can have coverage to treat his emphesyma, diabetes, and liver disease caused by his happy go lucky life. Nevermind the family with two babies to feed, our small business being our sole source of income. If our premiums keep going up we are going to be the ones out in the street. Well at least the old hippy will be ok. That would surely please the eugenecists. After they kill off all of the families, they can live freely in their utopia.

    16. Pingback: Today in Washington - September 23, 2010 | RedState

    17. RUTH SC says:

      My premiums went up, my co-pays went up, my benefits went down, and I've been told many things I need will be discontinued, I paid into the system for 45 years, am I supposed to just roll over and accept all of this, I now live on 775.00 a month, I don't get food stamps and I don't ask for a hand out but I would like to have what I worked for all these years without having to ask my family for help. I am severely disabled and no one will let me work, so I can't even help myself, I am too proud to ask for hand outs and I don't want pity but if they keep cutting out what I need to live, What do I do?

    18. Lesli V. says:

      My COBRA payments for my excellent company helathcare after being laid off are $400 per month. Without Obamacare, they'd be $1200 and I'd be without insurance. Just sayin…its working for me.

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