Health-insurance premiums have been rising—and consumers will experience another series of price shocks later this year when some see their premiums skyrocket thanks to the Affordable Care Act, aka ObamaCare.
We’ve already seen a lot of premium hikes – mine as gone up 20% this year. And now, it’s going to get worse? Glad to see that the Supreme Court decided this was a TAX, aren’t you? Certainly, the cost of Obamacare is making me sick (yeah, I couldn’t resist) – you? Especially if you pay for your own plan (you rich guy, you!)?
The reason: The congressional Democrats who crafted the legislation ignored virtually every actuarial principle governing rational insurance pricing. Premiums will soon reflect that disregard—indeed, premiums are already reflecting it.
I have seldom seen a worse pairing of words (congressional and rational) in a single sentence. But hey, these are the dopes that can’t even pass a budget (any kind of a Federal budget, much less a rational Federal budget (yeah, I’m shaking my head at that one too)).
…How do we know these requirements will have such a negative impact on premiums? Eight states—New Jersey, New York, Maine, New Hampshire, Washington, Kentucky, Vermont and Massachusetts—enacted guaranteed issue and community rating in the mid-1990s and wrecked their individual (i.e., non-group) health-insurance markets. Premiums increased so much that Kentucky largely repealed its law in 2000 and some of the other states eventually modified their community-rating provisions.
From the Wall Street Journal in a post talking about why Obamacare is going to cost us LOTS – any pretense of lowering costs has gone by the boards. Why? Two answers:
- Guaranteed issue (“you will accept all who would enter into your plan – even if they wait until deathly sick)
- Community rating (“Thou shalt not charge the sick more than the well” (or is that the other way around?)
- Mandates (“Such a deal: no options! Every procedure is standard!” (so much for TANSTAAFL))
Yes, we CAN learn from history – and you should feel proud, denizens of the Live Free or Die State, that US Senator Jeane Shaheen decided to make us an object lesson on how NOT to do things. We in NH know this well, for before there was Obamacare, we ad ShaheenCare! Where once there were a dozen healthcare companies vying to give you great value, there are effectively 2, thanks to the effects of NH Senator / NH Governor Jeane Shaheen. And with her being a cheerleader for ObamaCare, she’s screwed over the citizens of this State not once, but twice. But hey, with hubby a high priced lawyer and a Senatorial salary, betcha this 1% ain’t wondering how the next heating bill is going to get paid.
Must be nice, making the rules for the rest of us. Does being a US Senator, Democrat, mean never having to say “Oopsies, my bad. Reset button, anyone?”
