More Obamacare Bad News – Claims Costs Are Going To Spike!

ObamaCareSymbol_thumb

As predicted, Obamacare is turning into a national nightmare. Every day brings more bad news. The latest is that the cost of claims is going to spike as the previously uninsured are added to the system. This will mean higher premiums for the young and healthy. I wonder how all of the young Obama voters are going to feel when they see the cost of their health insurance premiums go up, especially in this rotten Obama economy. Who knows, they might start to pine for the good old days when they paid $8 out of pocket for birth control.

Insurance companies will have to pay out an average of 32 percent more for medical claims on individual health policies under President Barack Obama’s overhaul, the nation’s leading group of financial risk analysts has estimated.
That’s likely to increase premiums for at least some Americans buying individual plans.

The report by the Society of Actuaries could turn into a big headache for the Obama administration at a time when many parts of the country remain skeptical about the Affordable Care Act.

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

The disparities are striking. 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.

The report did not make similar estimates for employer plans, the mainstay for workers and their families. That’s because the primary impact of Obama’s law is on people who don’t have coverage through their jobs. (Read More)

Well, we’re already seeing what’s happening to people whose coverage is through their jobs. They’re getting their hours cut, spouses dropped from their plans, or they’re being told to submit to their employers reports on BMI and blood work. And you can have the best employer-sponsored health plan in the world, but it won’t do you much good when doctors retire or give up their practices in droves.

On the bright side, the report also says that prices could come down in states like New York, where I live. I can tell you with complete certainty that it hasn’t happened yet. But if what they say is true, doesn’t that mean that those of you living in more sensible red states will be subsidizing the blue states you’ve probably been trying to avoid? Then again, New York is doing everything possible to ensure that this state leads the pack when it comes to doctor shortages, so perhaps a lack of providers will drive the price down.