How Health Care Reform Affects the Health Insurance Market


Here's how Medicare's actuaries project ObamaCare will affect health insurance premiums, via Avik Roy at Forbes:

In 2014, the actuaries find that growth in the net cost of health insurance will increase by nearly 14 percent, compared to 3.5% if PPACA had never passed. The growth rate of private insurance costs will rise to 9.4 percent, from 5.0 percent under prior law: an 88% increase.

So what about all the supposed health insurance "savings" that the Obama administration has said we'll see as a result of ObamaCare? That's true—at least if you count the law's new insurance subsidies as a form of savings; when taxpayers pick up part of the tab, the price paid by an individual ends up being less, even if the total price is expected to rise.