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  • Side Effects: Obamacare Fails to Halt Rising Premiums

    President Obama and his supporters have said that one of the major benefits of the Patient Protection and Affordable Care Act would be a drop in health insurance premiums. But a new Hewitt Associates study shows that insurance costs will continue to rise for 2011.

    The study projects an 8.8 percent average premium increase for employers, compared with a 6.9 percent rate jump in 2010. Additionally, employee contributions toward health coverage are expected to soar by $2,209, or 22.5 percent. This is up 12.4 percent from 2010, when employees contributed $1,966, the study said.

    “Employers can expect 2011 health care cost increases to be at their highest levels in five years,” the study said. This report and other recent health economic projections [which] have essentially obliterated the claim that health insurance costs would drop with passage of Obamacare.

    In fact, proponents of the health care law have been quick to reverse course on other promises. Ben Smith pointed out in Politico that groups like The Herndon Alliance—whose partners include AARP, AFL-CIO, SEIU, Health Care for America Now, MoveOn and La Raza—have been coaching Obamacare supporters to avoid saying  “the law will reduce costs and deficit.”

    The President himself has admitted that health care costs would rise “as a consequence of us getting 30 million additional people health care—at the margins that’s going to increase our costs, we knew that. We didn’t think that we were going to cover 30 million people for free.”

    This is a far cry from the $2,500 savings the President was predicting during the 2008 presidential campaign before Obamacare became a reality. Since its passage, evidence continues to mount that the new law fails to live up to its many promises.

    This post was co-authored by Charles Adair.

    Posted in Obamacare [slideshow_deploy]

    15 Responses to Side Effects: Obamacare Fails to Halt Rising Premiums

    1. Billie says:

      Seems like such an enormous amount of money towards another unknown cost. How is this cost that has no reason to exist, determined? Obmacare fails to halt rising premiums for no reason except his own and he didn't intend to. He is a liar and dishonorable. He takes advantage, condescends and demeans the good people of America.

      To be forced to deal with a rebel leadership will eventually crumble the rebels.

    2. Nettie, Phoenix says:

      Isn't Obamacare the reason why Insurance is going up? A business has to make a profit to pay their workers. Obamacare is causing more costly coverage by forcing ins. co.s to cover things that should cause rates to go up or the company to fold.

      That is what Obama wants-only Federal Government in charge of our care(very scary to me)

      Federal Government can run what they do and not pay attention to costs because "we the people" fund them. If they need more, they just have to figure out how to rob us better. Shame on all the criminals who allowed such an evil thing to overtake a good system. They didn't read the bill. They don't earn their pay (that they vote themselves).

      We need an overhaul of Washington, from the top down!

      We are losing our freedoms!!!

    3. Drew Page, IL says:

      When insurance costs go up, employers providing health coverage have only the following options:

      1. Pay the increase.

      2. Drop the insurance.

      3. Increase employee contributions to cover all, or part of, the cost increases.

      4. Decrease benefits to eliminate all or part of the cost increases.

      5. Implement some combination of 3. and 4.

      There was no way Obama could truthfully say that his health care reform bill would make the cost of insurance go down. First of all, he never read the several thousand pages of the legislation, so he had no idea what was in it. But this is a moot point. Obama didn't care what it cost. He wanted to establish his legacy. He wanted to go down in history as the President who "gave" America health care. It's nice to "give" things to people; it makes you feel good. But when you give away something that doesn't belong to you, that someone else has to pay for, that's not generosity, it's theft.

      Undeniably, providing health coverage to those who couldn't afford it, at taxpayer expense, is a great deal for those people. What about all the other necessities of life? Should these be provided at taxpayer expense to all who can't afford them? And what would the test of "affordability" be? Certainly it would be nice for all those who can't afford these things to have them provided by the taxpayers. Remember though, only 50% of income earners pay federal income taxes.

    4. Brad, Detroit, MI says:

      Side Effect – HSA's are going away.

      Evidence – Just received a note from my company that they are no longer offering HSA's starting in 2011.

      Reason – HSA's actually drive down costs because it makes the consumer more accountable for their spending habits on medical bills. I.E. – they don't go to the doctor everytime they have a sniffle or a scrape.

      This bill is working just as expected. Make it too costly for employers to provide medical coverage and have everyone "dumped" into the government 'exchange'. I predict a Nationally run health care system in about 10 years if this law is not repealed.

    5. Tom Georgia says:

      The governments of The United States are the most badly broken part of our nation. Our federal government is the most badly broken of our governments.

      We have the most badly broken of our governments trying to fix our healthcare delivery system that would not need fixing nearly as badly as it does if not for the attempts to control and manage healthcare by our badly broken, misguided federal government.

      The United States Federal Government is F.U.B.A.R. To think otherwise is to engage in fantasy.

    6. Wayne, Florida says:

      Medical costs could come down tommorrow if everyone stopped carrying health insurance. This corrupt industry is scalping the public and laundering money through the healthcare system. If doctors could only charge what people could pay, and hospitals could only charge what patients could afford, we would probably see hospital room rates more comparable to hotel rates, and doctors still making a better living than most. Attorneys would also stop suing over every little mishap if there were no deep-pocketed insurance companies to go after. I know this is extreme, surely too extreme, but nothing is being done to bring down costs, and this certainly would!

    7. Pingback: Orlando Political Press » Blog Archive » Obamacare Fails to Halt Rising Premiums

    8. Kendall Svengalis, N says:

      What is disgusting is that Obama feels obliged to demonize insurance companies to justify his federal takeover of the health care sector. When you claim, falsely, that premiums are going up by 39%, as he did, you provide the pretext for a federal takeover. He not only lied about this, but implied that the premium increases were proof of corporate greed. This is hardly the case. With insurance companies earning just 2.3 cents on the dollar, it is hardly a healthy industry. Premium increases are a product of steeply rising costs, not corporate greed. But such charges make great fodder for demagogues like Obama and other members of the Democratic Party for whom facts are expendable and political power is everything.

    9. Drew Page, IL says:

      Wayne in Fla. — The cost of gasoline would aalso come down, if everyone stopped driving automobiles.

      By labeling the health insurance industry as corrupt and saying they are scalping the public, you show either ignorance or stupidity. I will give you the benefit of the doubt and say that you are merely ignorant of the facts. Fortunately for you, ignorance can be overcome by learning. Those who would deliberately choose to not acquaint themselves with the facts are stupid, and that can't be overcome by learning because stupid people refuse to learn.

      If the health insurance industry was so outrageously profitable why have giant health insurers Metropolitan, Prudential, Travelers, John Hancock, The Hartford, CNA, Lincoln National, New York Life, Occidental Life and TransAmerica not selling group health plans to employers? A study of all health insurance companies still doing business in America, done last year, revealed that the average profit margin of these companies was two and one-half percent of premiums charged. The truth is there are only a few of the large insurance companies still offering group Medical insurance such as Aetna, CIGNA and Blue Cross/Blue Shield (sometimes called Wellpoint or Anthem, depending on their state of situs). This is due to the low profit margins, constant state and federal mandates over the past 50 years that force health insurance companies to expand benefits and eligibility for those benefits and the imposition of massive administrative burdens placed on these companies by the government.

      Unless it is repealed, Obamacare will require all insurance companies selling individual health insurance policies to remove pre-existing conditions limitations from their policies. When this happens you will see those companies no longer selling individual health insurance. Without these pre-existing conditions limits, a person could avoid buying health insurance until he found out he needed it. Then he could become covered, have all his medical bills paid and when he no longer needed the insurance he could stop paying for it, only to repeat the cycle the next time he needed to have his medical bills paid. It would be like allowing a person to buy fire insurance on his home after his house caught fire, paying an annual premium of perhaps $1,000 in order to have his $300,000 home rebuilt. No insurance company could survive this.

      BTW, Obamacare contains a provision that allows employers to drop the health insurance they provide employees and pay the government a fine of $2,000 per employee, per year. Considering that employers routinely pay four to five times as much for health insurance it won't be long before they all drop it and send employees to one of the national insurance exchanges, which have not yet been created. With no insurance company offering individual health policies and employers dropping their group Medical insurance plans, you will have what you want — single payer, government run health care, with no other competition.

      If you think insurance is expensive now, just wait until it's "free".

    10. Pingback: where does the insurance we pay money go?

    11. Kay, Michigan says:

      The only thing I can figure out is this means the beginning of a goverment controlled country. We are on the way to losing the freedoms of our constitution.

      There is no way this can be constitutional. I believe we need to make it clear that you can not force a citizen to buy a service. This outcome makes me want to fear what it yet to come in the future. This governement is already controlling the private sector, and how we are suppose to parent our kids. Is it just arrogance on their part or the amaerican people mean nothing.

    12. Kay, Michigan says:

      Mark my words. Everything Obama said would not be in there, more than likely is in there. You noticed our government is exempt from this nightmare healthcare bill that they passed before reading. This is how the government works.

    13. Ormond Otvos says:

      Context, please! Will the average cost per capita of healthcare increase?

      Will health outcomes and mortality improve? Will workers be more productive?

    14. Ormond Otvos says:

      No one mentions the well-functioning government single-payer plans all over the world. Cherry-picking the facts, like insurance companies cherry-pick their customers.

      Health care is a common good, not a market commodity, which is why people die from lack of care, and bankrupt themselves and family when someone gets sick.

      There's no fair reason to presume that medical will be rationed by need, more than it is now rationed by wealth. The question no one will address here, I think, is the fairness of people being sick because they're not rich.

    15. Ramona says:

      http://w3.newsmax.com/a/aftershockb/video47.cfm?P… this is up to the US going to work everyday, in every single job on the planet, stop being lazy and greedy and do the right things, WE (the) US CAN STOP the economic crash, and control the rising cost of premiums, everyone that workd in the insurance industry can , the presidents (romney nor obama) dont work in any of the companies fueling our ecomony, they run the oversears of goverment, the government is nothing without companies, *which as people* need to do the right things, stop lying and cheating

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