Obamacare’s Health Insurance Premium Nightmare
Congratulations! You still have a gangrenous infection in your leg, but that hangnail on your pointer finger – it’s gone.
That would be a ridiculous thing to say to someone, and it would certainly not offer any real consolation or solution.
Well, the left has something to say, and it ranks nearly as high on the silliness scale:
There’s pretty widespread acknowledgement that, under Obamacare, many in the individual market will see premiums go up. Health and Human Services Secretary Kathleen Sebelius has acknowledged this, as have other top Democrats.
This is what happens when insurance plans are required to cover Americans with potentially costly, pre-existing conditions: More sick people, who require additional care, gain coverage. While some will see their premiums decrease (older Americans, for example, due to limits on age rating), states are already seeing significant premium increases.
That’s the case in most of the country — but not in New York State. There, the state is actually expecting some big changes likely to lower health premiums, according to a new analysis prepared for the New York Health Benefits Exchange.
Great! Surely, the people of Arkansas – who will see a premium increase of 61 percent to 100 percent –will be so relieved that Sen. Mark Pryor (D) voted for lower premiums for New Yorkers.
As of 2007, one actuarial firm found that monthly payments for health insurance premiums in New York could top $1,000 per month – because of a 1993 New York state law that required insurers to accept all customers including those with pre-existing conditions but that did not impose an individual mandate like Obamacare.
The health care law will shake up New York’s individual market in an especially interesting way. It will require New Yorkers to purchase health coverage, a requirement that doesn’t exist right now.
Conclusion? With Obamacare, President Obama and his fellow liberals have helped the people in New York to go from paying insanely high premiums to slightly less insanely high premiums all because of a 1993 law they could have replaced themselves, and all at the expense of almost everyone else in the United States.
The Heritage Foundation explains, as does the House Energy and Commerce Committee, that all but two states – New York and Vermont — are expected to see their premiums rise.
Though there are many provisions in Obamacare that are causing premiums to rise, one of the two most expensive provisions will harm young people specifically:
Obamacare limits variation in premium costs to a ratio of 3 to 1 based on age. But as Heritage research shows, “The natural variation by age in medical costs is about 5 to 1—meaning that the oldest group of (non-Medicare) adults normally consumes about five times as much medical care as the youngest group.” This means that under Obamacare, young adults will pay significantly higher premiums than they would have prior to Obamacare, and older adults will pay only slightly lower premiums.
Maybe the people of New York and President Obama will take this as good news. But for the rest of us – for young people and the residents all the states where premiums are set to rise – this is nothing to rejoice over.