Surprise: Insurers Warn Of Skyrocketing Costs Due To Obamacare

Nancy Pelosi stated that “we have to pass the bill to find out what’s in it.” Well, no, not really, because pundits were saying before hand that Obamacare would cause the cost of health insurance to rise. Looks like they were right

(AP) Some Americans could see their insurance bills double next year as the health care overhaul law expands coverage to millions of people.

The nation’s big health insurers say they expect premiums — or the cost for insurance coverage — to rise from 20 to 100 percent for millions of people due to changes that will occur when key provisions of the Affordable Care Act roll out in January 2014.

Mark Bertolini, CEO of Aetna Inc., one of the nation’s largest insurers, calls the price hikes “premium rate shock.”

“We’ve done all the math, we’ve shared it with all the regulators, we’ve shared it with all the people in Washington that need to see it, and I think it’s a big concern,” Bertolini said during the company’s annual meeting with investors in December.

It’s not particularly a big concern for Democrats, who love the idea of Obamacare being a bridge to Single Payer. It’ll be amusing next year when all the Obamacare supporters who are hit with the massive price increases start complaining.

The impact of some cost hikes will be wide ranging. The new premium tax, for instance, will affect individual insurance, some employer-sponsored coverage and Medicare Advantage policies, which are privately-run versions of the government’s Medicare program for the elderly and disabled.

Other price hikes will vary due to factors like a person’s current coverage and age. Young people who currently have low-cost coverage may see some of the biggest hikes.

I maintain that this is not a bug, but a feature. The idea is to drive people from private insurance into the hands of the government run exchanges with all their subsidies, along with the Medicaid expansion. But, that money has to come from somewhere, which means rising costs and taxes somewhere else.

But Robert Laszewski, an industry consultant and former insurance executive, said that theory assumes there is no competition in the marketplace now. He noted that a small company may get quotes from as many as 10 insurers competing for business when it tries to find coverage through a broker.

Those who support the exchanges have this notion that they will create competition which could lower costs. Alas, as the above paragraph points out, there already is competition. Costs are costs. When insurance companies start going out of business due to their own skyrocketing costs and dwindling profits thanks to government mandates and taking on lots of sick people, that competition will dry up. Which is also a feature, not a bug.

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5 Responses to “Surprise: Insurers Warn Of Skyrocketing Costs Due To Obamacare”

  1. Gumball_Brains says:

    Color me unshocked.
    I told my 18yo son, who is suffering under this administration’s stranglehold of low-wage easily attainable jobs. With near 20% unemployed for his age-racial group, he’s really struggling to find a job.

    I told him, next year, he will find himself fined for not being able to afford health insurance and for not wanting it either.

    Fined for not wanting something.

    What has our country come to.

  2. john says:

    The health care costs have ALWAYS gone up. And Gummie when 80% of his peers can find work why is it that HE can’t? That’s like he is in the bottom 20%.

  3. john says:

    in no other industrial county does 30% of your healthcare dollar go to administration and profit, only 70% actually goes to patient care. The USA has the highest price health care and it is not the best, many other countries do better.

  4. Gumball_Brains says:

    in no other industrial county does 30% of your healthcare dollar go to administration and profit

    Actually, you are half right. Most of the expense is in administration and government regulation. Health insurance industry is not that much of a profit industry. Sure they make profit, but any corporation does. Why aren’t you bemoaning the huge profits of Microsoft, Google, Ben&Jerry’s?

    As for my son and his employability, are you really suggesting that 20% unemployment is his fault? Or the fault of those of his peers who are unable to find a job?

    That has sunk to a new low, even for you john.

    Do you also blame the person with Downs Syndrome for having Downs Syndrome? Was it some deficiency in their character, john? Did GAIA get angry at something they did in a before-life?

  5. gitarcarver says:

    The health care costs have ALWAYS gone up.

    When the health care debate was going on jphn supported Obmacare saying it would lower costs. Conservatives argued it would not.

    Left leaning people like john said competition would increase even as more and more government regulations reduced companies’ ability to compete fairly within the market. Conservatives argued competition would decrease.

    We arenow seeing that Conservatives were right and so people lile john have to deflect and shift in order to not admit what the world knows – the left was wrong.

    Not only that, but the EU is looking at scaling back green initiatives because they are killing economies.

    http://blogs.the-american-interest.com/wrm/2013/03/14/eu-leaders-weigh-green-goals-against-growth/

    That is on top of a report out of England that since England started to regulate “renewable energy” siurcesm hundreds if thousands of the elderly are dying because they cannot afford higher heating costs as well as the associated increase in costs on everything from pins to tea.

    John will keep advocating failed policies to the detriment of all people.

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