In past posts I have opined on my view of the consequences of ObamaCare, specifically commenting on Mr. Obama's claims that premiums will go down under his landmark legislation. I believe, and have stated, the opposite will occur.
Following is a summary from an article on the subject from an insurance industry publication:
In spite of promises that health reform would lower premiums, Americans are finding different outcomes. Despite Obama's assurances that the average family's premium will be reduced by $2,500 annually, the opposite appears to be happening. According to the Kaiser Family Foundation, the average family premium for employer-provided health insurance rose 4.5% so far this year, more than twice the inflation rate. In 2011, average premiums rose by 9.5%, increasing family premiums by nearly $2,000/year.
For workers in companies with fewer than 50 employees, Kaiser found that family premiums increased 8% this year increasing premiums by more than $1,100.
Ohio officials estimate that by 2017, premiums in their state will rise from a minimum of 55% to as much as 85%!
And here is the key point. Because Obamacare forces insurers to provide benefits it does not cover pre-Obamacare, the cost of insurance will go up.
Another driver of higher premiums is the fact that insurers must cover everyone, regardless of health history, a change that will attract sicker enrollees at the expense of healthier ones. Add to this the fact that many uninsureds will ignore the mandate and pay the penalty (tax). As a result, the assumed financial foundation of Obamacare, increased revenue from insuring millions of people, will not happen. The risk will not be spread as Obama assured us it would and the result will be ever increasing premiums.
For all those people who voted for Obama, believing that his health care plan will provide more benefits at less cost, I remind them of the old adage of be careful of what you ask for. You may get it (but ultimately not like what you get).
