Obamacare

Study: Many Insurance Premiums to Rise By Double Digits Under ObamaCare

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Credit: Whitehouse.gov

Earlier today I mentioned a new study by the Society of Actuaries estimating that insurance company claims will rise substantially under ObamaCare. With higher claims will come higher premiums: Nationwide, the study estimates that individual market premiums will rise by an average of 32 percent.

The Associated Press has more details on the study: 

The study says claims costs will go up largely because sicker people will join the insurance pool. That's because the law forbids insurers from turning down those with pre-existing medical problems, effective Jan. 1. Everyone gets sick sooner or later, but sicker people also use more health care services.

"Claims cost is the most important driver of health care premiums," said Kristi Bohn, an actuary who worked on the study. Spending on sicker people and other high-cost groups will overwhelm an influx of younger, healthier people into the program, said the report.

The 32 percent hike in claims is a national average. In some states, premium hikes will actually be much higher, the study projects. 

While some states will see medical claims costs per person decline, the report concluded that the overwhelming majority will see double-digit increases in their individual health insurance markets, where people purchase coverage directly from insurers.

The differences are big. By 2017, the estimated increase would be 62 percent for California, about 80 percent for Ohio, more than 20 percent for Florida and 67 percent for Maryland. Much of the reason for the higher claims costs is that sicker people are expected to join the pool, the report said.

And in Washington, D.C., the study projects that individual market premiums will rise by 52 percent.

The White House still insists that the law will result in "more affordable coverage." 

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  1. Weakest Alt-Text ever!

    Christfag!

  2. Premiums are only going up because insurance companies waste money by giving profits to rich people. Profiting off of the sick is immoral. For this reason we need a single payer system. Yes, it will provide substandard care, but at least it won’t be lining the pockets of rich people.

    1. Food prices are only going up because food service companies waste money by giving profits to rich people. Profiting off of the hungry is immoral. For this reason we need a single payer system. Yes, it will provide substandard food, but at least it won’t be lining the pockets of rich people.

      TV prices are only going up because cable companies waste money by giving profits to rich people. Profiting off of the bored is immoral. For this reason we need a single payer system. Yes, it will provide substandard entertainment, but at least it won’t be lining the pockets of rich people.

      House prices are only going up because mortgage and construction companies waste money by giving profits to rich people. Profiting off of the homeless is immoral. For this reason we need a single payer system. Yes, it will provide substandard shelter and housing, but at least it won’t be lining the pockets of rich people.

      Etc.

      1. It’s the way of the future.

        1. Fundamental transformation!

        2. The future is already here.

    2. I’ve long thought that’s what a lot of proglodytes are actually thinking. They’d be fine with standing in line for 10 hours to get one aspirin, so long as some formerly rich capitalist is behind them in line.

  3. If you like your health care plan, you can expect to pay so much more to keep it.

    1. (Oh and you can’t keep it, here’s a crappier, but more expensive version)

  4. intended consequences

  5. When it comes to numbers, am I supposed to believe a bunch of actuaries or the President of the United States?

    Clearly the latter, like any DECENT American.

  6. Either the sick die, or they get taken care of. You pay less, or pay more.

    It sucks, but I would rather have the sick taken care of.

    1. Then you are more than welcome to pay for them and leave me the fuck alone.

    2. Either the sick die, or they get taken care of

      False. Everyone dies, sick or not. This comment gets a 2 out of 10.

      You pay less, or pay more.

      In relation to what? How am I to figure out what you are comparing this with? This comment is terrible, absolutely no reference or end point. This gets a 1 out of 10.

      It sucks, but I would rather have the sick taken care of.

      What sucks? Paying less? Paying more? Again, no reference and terrible grammar using a preposition at the end of a sentence. This comment gets a -3 out of 10.

      Final grade: FAIL.

      1. To be fair, using a preposition at the end of a sentence is lately being seen as acceptable.

        1. Tman is old school. It is something up with which he will not put.

  7. Who’s the douchebag with the ponytail?

    1. An innumerate douchebag with an MD.

  8. Everyone gets sick sooner or later, but sicker people also use more health care services.

    It’s hilarious that things like this have to be stated explicity.

    Why do people turn into retards whenever you start discussing healthcare?

  9. Well, yeah, the whole idea what the healthy people with no insurance would be forced to buy it, thus offsetting the cost of the sick people who get insurance.

    Of course, in practice, they won’t buy insurance, since it’s cheaper not to .

    But again, Costa freaking Rica manages to provide health care to everyone, why can’t the US? Obamacare isn’t the answer, but there are many countries with healcare systems that aren’t awful, provider coverage to everyone, and yet still manage to cost much less.

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