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Health Insurance Rates Increasing By Double Digits Under O’s ‘Affordable’ Care Act

98589-obamacare-costs-by-nate-beeler-the-columbus-dispatch (1)Remember when the San Fran Hag, Nancy Pelosi, infamously told us we had to pass ObamaCare so we could find out what was in it? Or, how the disingenuous community organizer droned on and on about making healthcare affordable for “everyone”?

Unfortunately, Pelosi was right; but the community organizer? Not so much.

Yep, here we are, barely a week into 2013, and as reported by The New York Times – the bible of the left – health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the (supposed) primary objectives of the ObamaCare – oops – the “Affordable” Care Act – was to stem the rapid rise in insurance costs for consumers. From The NYT: 

Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.

In California, Aetna is proposing rate increases of as much as 22%, Anthem Blue Cross 26% and Blue Shield of California 20% for some policyholders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39% rate increase sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014. Continue reading…

Health Insurers rightly claim that increased medical costs are mostly to blame for the double-digit rate requests. Moreover, the guaranteed-issue provision built into ObamaCare increases costs for the insurers, who cannot draw all of the needed revenues from the high-risk pool, courtesy of ObamaCare’s mandates on rates.  As a result, higher costs must be spread among everyone in the risk pool – a basic insurance concept completely lost on Barack Obama and the Democratic Party.

While I’m no fan of the insurance companies, I am a fan of understanding the reality of business and the free market: for-profit companies pass down increased costs to their customers – be they tax increases, higher cost of materials, increased labor costs, on the case of the health insurers, higher medical costs of their policyholders. Again, basic 101 stuff that the progressive socialists pretend to fail to grasp.

Given that ObamaCare doesn’t go full metal jacket on America until 2014, when even more mandates and regulations are scheduled to take effect – many of which are based on state exchanges that may never even exist in more than half of the states, is it any wonder that health insurance companies are doing their damnedest to protect themselves while they still have the legal right to do so?

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Categories: Healthcare, Obamacare, Politics

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8 replies

  1. Reblogged this on 4 Liberty Sake.

  2. “Insurance” is a sort of legal racket, where the insurance company is taking a bet on whether or not you will get sick. When they started paying for extreme measures for prevention, the slope started for insurance to pay for EVERYTHING. Well, what’s wrong with paying straight up for regular medical services? That where the big expenses come in – you have to pay people to administer all of it.

    • Two thoughts: The concept of “risk sharing” among properly-filled “risk pools” is valid – until it’s bastardized. However, the mess that has become healthcare insurance is fatally flawed, to your point, CL.

      Take car insurance, for example: An auto policy doesn’t cover oil changes, tires, routine maintenance, etc. Can you imagine the cost if it did? Likewise, doctor visits for colds, basic prescriptions, etc. should be paid from health savings accounts or out-of-pocket. Period.

      • Exactly. Having a pre-tax health savings account maintained over a lifetime with $10 or $20 per paycheck going into it in the beginning and increasing as pay does and families get bigger, will cover most of the basic doctor’s visits, tests and scripts over time. I paid less than $150 not using insurance for a doctor’s visit that all of the annual “wellness” tests (that I really don’t need). That’s a helluva lot cheaper than the monthly premiums my employer paid on the last job where I saw the benefits statements.

        And the really dirty secret is if we live traditionally food wise and take a walk every day, that does a lot more for health than all the doctors’ visits, drugs and tests ever will.

      • Great minds think alike. ;-)

  3. Seems to my jaundiced eye that when you remove the probability curve via mandates, you don’t have insurance anymore, exactly as stated..And that appears a deliberate ploy to remove the insurers from the picture without actually admitting that goal. Hence the ‘exchanges’ to pick up the pieces.

    But as the Unaffordable Care Act cannot be funded in its entirety (some of the money would have to come from off-planet, or maybe another universe) this will likely be a King Kong-sized gorilla on Congress’ back until they manage to chop it into mismanageable bits. That’ll be a while, the economy suffering the whole time…Betcha!

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