ObamaCare may cause Sticker Shock as Premiums begin to increase
Why does ObamaCare Cost so much?
According to the Wall Street Journal report we can expect our health insurance premiums to skyrocket over the next several years thanks to ObamaCare or the health insurance law more formally known as the Affordable Care Act.
There are a variety of reasons for the upcoming increase, but the most important are the requirements that the insurance is guaranteed, consumers will not be charged more if they have a serious pre-existing health condition and there are an untold number of mandates for previously uncovered medical conditions which now must be provided to the insured.
According to the Wall Street Journal, the increase is due to the congressional Democrats who crafted the legislation and ignored virtually every actuarial principle governing rational insurance pricing.
Reports from actuaries indicate that some residents may see their premiums increase 50% for some in the individual market for the same coverage, although they contend that increases for large employer groups could be less. Small employers will also see a significant cost increase.
What may surprise many is that residents of certain states, who already have ObamaCare-like provisions in their laws, may see less of an increase, although many of these residents already pay twice what residents in other states currently pay. States with residents who are least likely to be affected will include New York, Vermont and New Jersey.
Which states could be hit the hardest? It will be the ones who have typically limited certain mandates. Now this may be impossible. It is estimated that states such as Arizona, Arkansas, Georgia, Idaho, Iowa, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, Utah, Wyoming and Virginia will likely see the largest increases. In fact, their insurance premiums could rise an estimated 65% to 100%.
Will we have to wait until 2014 for the premium increases? No, in fact health insurance premiums have already started to rise. Partly due to increased healthcare costs but also to prepare for the guaranteed-issue and community-rating mandates which start in 2014 under ObamaCare.
One thing we know for sure: President Obamas repeated claim that our insurance premiums would be lower after his first term was nothing more than a pipe dream. Most families are paying on average $3,000 more in medical expenses.
Its not just the right thats suggesting premiums could drastically increase for ObamaCare. Mark Bertolini, CEO of Aetna, the country's third-largest health insurer, agreed that premiums could increase. At a recent annual investor conference in New York City he claims that market prices could increase by as much as 100%.
The left may claim that the increases are due to greed, but this time they will be wrong. You cant give everything to everybody and expect the price to decline. Health insurers wont be able to stay in business with perpetual deficits. But maybe thats what our current administration is counting on: a single payer system run exclusively by the Federal Government.