Americans knew the negative impact Obamacare would have on the nation before the law even passed. Millions of Americans will be added to Medicaid, which already provides low-quality coverage and patchy access to care. The new law will not result in universal coverage, despite its $1 trillion+ price tag. Premiums will go up. And Americans who like their current health plans will not be able to keep them.
Now, states are beginning to better understand the impact of Obamacare. Earlier this month, Gorman Actuarial and Jonathan Gruber reported on Wisconsin residents’ moving out of existing coverage and experiencing premium hikes.
Milliman, an independent consulting firm, recently released its findings on the law’s effects in Ohio.
Greater dependence on government coverage. The most striking finding of the study is the expansion of taxpayer-funded, public health care programs under the new law. Before Obamacare, enrollment in Ohio’s public health programs, including Medicaid, was a little more than 2 million. Now, Ohio (and federal) taxpayers will be picking up the tab to expand these public health programs by 52 percent. Of the more than 1 million state residents added to these programs, more than half had coverage before the law passed, and only 47 percent were uninsured in 2010.
Though Obamacare expanded Medicaid by as many as 25 million Americans and created a new health entitlement, millions of Americans will still go without coverage. In Ohio, only 53 percent of the uninsured will have coverage in 2017, when all the provisions of the law will be in effect. Real health care reform could expand coverage for those who are currently uninsured without these negative consequences, and with better success than Obamacare.
Escalating premiums. The Milliman study also shows across-the-board increases in premiums resulting from the new law, on top of customary growth due to medical inflation. Premiums will grow by 3 percent to 5 percent in the large group insurance market, 5 percent to 15 percent in the small group market, and a whopping 55 percent to 85 percent in the individual market. As the authors point out, these numbers represent the estimated average premium impact and will vary based on age and health status. According to the report, “In the individual market, a healthy young male…may experience a rate increase of between 90% and 130%.” At the same time, older and less healthy individuals could see a decrease.
Premium increases will result from a number of policies and effects of the new law. These include new benefit requirements, age rating, and other types of requirements placed on insurers. They also include shifting of costs by providers from publicly covered individuals to the privately insured; the authors warn that “The significant expansion of the Medicaid population may result in increased charges to commercial payors to account for low provider reimbursement under Medicaid.”
The impact of Obamacare on Ohio is clear: The huge expansion of government-run health care will raise costs for state residents by increasing taxpayer funding of government health care programs and by escalating health care costs. The Milliman study is the latest reminder of why Obamacare must be repealed.
Does this mean that those parents who carry their kids up to age 26 wil have to rob Peter to pay Paul when their insurance premiums bankrupt the whole family? This certainly speaks of a totally socialistic society – a destination which was Obama's stance since his first day in office. When medicare premiums increase to $246.00 a month in 2014 we will all be dependent on the government no matter how hard we work!
The entire PPAC was set up to fail and force us into a univeral health care system. Virtually all cost savings come from cutting benefits and reducing reimbursements to providers including hospitals and nursing homes and home health programs. Increased rules to dispense durable medical supplies, new EHR regulations, new electronic prescription regulations all cause increased operating costs for private practice doctors, health care groups and hospitals. These increased costs must be passed on to the patient.and the Ins. Co.
The individual mandate is suppose to lower premiums by reducing non-insured emergency room visits. But that reduction will be replaced and actually the cost will increase through the "premium assistance program which subsidizes those families with an "yet to be determined" modified adjusted gross income, "formula yet to be explained clearly and concisely".
The uninsureds who don't have the income to pay for coverage and those with diagnosed illinesses that require treatment that exceeds X per year could have been offered Medicare coverage under an expansion of the program, say medicare part E. Offering them lower premiums and hopefully earning the government revenue when the premiums exceed expenditures. We didn't need to revamp the entire system at one time, destroying what I consider to be a system providing quality of care and "many" private jobs. Other than costs to provide care rising, premiums have increased because the purpose of Insurance changed drastically.
Premiums are now suppose to cover ALL health care costs. Therefore, I don't even think we can call it Insurance anymore. Car Insurance, Homeowners Insurance don't pay for every repair they are meant to cover extra-ordinary costs. We need more hospitalization only coverage that includes all inpatients treatment. Inpatient care the cost most cannot afford to pay.
" . . . and only 47 percent were uninsured in 2010. "
"In Ohio, only 53 percent of the uninsured will have coverage in 2017, when all the provisions of the law will be in effect. "
What's not to like ? Higher cost of health care and tons of people still without insurance. Sign me up !
I strongly support the REPEAL of this law. It gives the government excessive control of our health care and it is devastating to the state of Ohio!
I am a 61 year old, self employed, single male and my individual health policy premium increased 24.5% at renewal on 2/1/2012! I am going to have to go back to work for a corporation to get into a group policy. Thank you Reed, Polosi and Obama!