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Obamacare: Projected Premium Increases by State
Posted By Alyene Senger On March 18, 2013 @ 12:18 pm In Featured,Obamacare | Comments Disabled
Remember that repetitive presidential promise  to “cut the cost of a typical family’s premium by up to $2,500 a year”? As 2014 and full implementation of Obamacare get closer, it is crystal clear that won’t be the case.
Obamacare’s most onerous insurance regulations will directly cause insurance premiums to skyrocket, particularly in the individual and small group markets.
While there are many provisions that will increase premiums, two will have the most expensive impact:
There have been many different studies done over the past few years to model what premium increases are likely to be under Obamacare’s new rules. The majority staff of the House Energy and Commerce Committee  worked with two Senate committee staffs to compile over 30 of them to make a list of projected premium increases by state:
Many Obamacare advocates attempt to refute these premium increases by pointing to Obamacare’s generous subsidy scheme. But as the Hoover Institution’s Daniel Kessler points out , “This argument is misleading. It fails to consider that the money for the subsidies has to come from somewhere. Although debt-financed transfer payments may make insurance look cheaper, they do not change its true social cost.”
To that end, Obamacare’s exchange subsidies are estimated by the Congressional Budget Office  to cost over $1.2 trillion over 10 years. And nobody should be surprised that this is an increase over the initial (2010) projected costs  for these subsidies.
With the bulk of the health care law kicking in 2014, this is likely just the beginning of Obamacare’s broken promises.
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2013/03/18/obamacare-projected-premium-increases-by-state/
URLs in this post:
 Image: http://blog.heritage.org/wp-content/uploads/senior-pharmacy-medicare.jpg
 promise: http://www.politifact.com/truth-o-meter/promises/obameter/promise/521/cut-cost-typical-familys-health-insurance-premium-/
 Heritage research shows: http://www.heritage.org/research/reports/2011/01/obamacare-and-insurance-rating-rules-increasing-costs-and-destabilizing-markets
 explains: http://www.heritage.org/research/reports/2011/01/obamacare-and-insurance-benefit-mandates-raising-premiums-and-reducing-patient-choice
 Energy and Commerce Committee: http://energycommerce.house.gov/sites/republicans.energycommerce.house.gov/files/analysis/20130305PremiumReport.pdf
 Image: http://blog.heritage.org/wp-content/uploads/Obamacare_premiums.jpg
 points out: http://online.wsj.com/article/SB10001424127887323374504578217720567917856.html
 Congressional Budget Office: http://cbo.gov/sites/default/files/cbofiles/attachments/43900_ACAInsuranceCoverageEffects.pdf
 initial (2010) projected costs: http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/113xx/doc11379/amendreconprop.pdf
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