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Government Watch

Congressional Report: Obamacare Leads to Skyrocketing Premiums, 200 Percent Possible

By Jim Meyers – Newsmax –

An exhaustive study by three congressional committees delivers startling news about the dire effects of Obamacare: President Barack Obama’s signature legislation could increase health insurance premiums by over 200 percent and render insurance coverage unaffordable for millions of Americans.

Broadly, the new report declares that Obamacare “breaks its core promise” to make healthcare coverage affordable.

The report, “The Price of Obamacare’s Broken Promises,” was prepared by the House Committee on Energy and Commerce, Majority Staff; Senate Committee on Finance, Minority Staff; and Senate Committee on Health, Education, Labor and Pensions, Minority Staff.

“Studies and analyses from the Congressional Budget Office, independent actuaries, state insurance commissioners, health plans, benefit consultants, and others have reached the same conclusion: Obamacare will significantly increase premiums,” the congressional report states.

“Some estimates show some Americans facing startling premium increases of 203 percent because of the law.

“Higher healthcare premiums are the last thing single young adults and working families can afford. Yet contrary to what the president promised, that is exactly what Obamacare is projected to do.”

When Obamacare’s most costly requirements go into effect in 2014, households earning as little as $46,000 a year will receive no premium assistance, yet will be forced to accept “unaffordable” premium increases, according to the report.

The Affordable Care Act will have an especially harsh impact on young Americans ages 21 to 29 — those with individual coverage will see their healthcare premium rise by an average of 189 percent.

The report points to several factors that will result in significantly higher healthcare costs for Americans:

  • The healthcare reform bill mandates that individuals pay the same premiums regardless of future anticipated medical expenses, leading to sharply increased premium costs for those under 50.
  • Obamacare requires that individuals purchase coverage that includes a range of “essential” health benefits, including coverage for preventive services, chronic disease management, and rehabilitative services, thereby restricting consumers’ choice in the design of their health plans and adding to their insurance premiums.
  • The law imposes $165 billion in new taxes and fees on health plans, drug manufacturers, and device makers, and these costs will be largely passed on to consumers in the form of higher premiums. One study cited by the report predicts that Obamacare’s health insurance tax will boost premiums by more than $7,000 over a decade.

The report notes that a number of states have already imposed requirements on health coverage and the result has been fewer choices and higher premiums.

In New York, for example, a 30-year-old male paid an average of $1,200 a year in annual premiums in 1993, but one month after the state passed Obamacare-like reforms, premiums soared to $3,240.

At the time Washington state passed similar reforms, 19 insurance carriers wrote policies for state residents. Within six years, only two carriers remained in the state.

According to the report, even the left-leaning Center for American Progress acknowledged that “Massachusetts along with several other northeastern states passed insurance market reforms similar to those in the Affordable Care Act, eliminating or restricting the ability of insurance companies to discriminate against the ill either in prices or coverage exclusions. The result in each state was very high nongroup insurance prices.”

The congressional report also warns, as others have previously, that Obamacare’s requirement that insurers cover pre-existing conditions will allow many relatively healthy Americans to delay buying insurance until medical attention is needed, thereby leaving less healthy individuals in the insurance pool and raising premiums.

The report concludes: “Taking into account empirical evidence from past state-level experiences, as well as future projections, upon implementation Obamacare will make coverage dramatically more expensive and unaffordable for individuals and families. “In short, Obamacare breaks its core promise to make healthcare coverage affordable as Americans across the country swallow higher premiums. For young adults to middle-class families, higher premiums will soon be the harsh reality of Obamacare.”

 

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Velma

We are doomed and the only thing for the America people to do is to ask God to remove him from our country–by kicking him out or by a natural death–I never wish death on any one but God does have the power if the people pray for our nation..He is killing all of America—all around–in every direction–money-health-etc u name it and He has mess it up

Paw Paw

ObamaCare was designed to eventually put private insurance out of business. The premiums will be so high that the American people will scream for help and Big Brother will ablige by administering health insurance, which will also serve as population control. Heaven forbid you have a terminal illness and the treatment has to be approved by IPAB, and depending on your age and cost of treatment, it will more than likely be denied. I hope the folks that voted for this dictator are happy for now we ALL will have to suffer the consequences of their decision.

Lonnien

All the posts won`t change the fact WE had our chance last November to put a responsible government in place – we didn`t. It is time to fight back with clear solutions no more listing of problems without solutions. Pontificating belongs in Rome – common sense needs to be our rallying cry.

Just because Obama does not mind a failed Presidency we do`nt have follow like Lemmings.If we expect others to take us seriously we have to stop demonizing and start a dialogue of problems and our solutions backed by facts and then let someone try to negate reality with stupidity.

Woody

The American people have been sold the proverbial “pig in a poke” with ObamaCare! I believe the Affordable Care Act will be a “train-wreck” financially as well as for health care in this country. For many many years, the USA had the world’s best health care and people came here from all over the world for treatment. Now we will have to go somewhere else for treatment (if we can) as our quality and availability of care goes down the drain. That our politicians have put us in this position is simply horrendous. It is absurd to pass a law that forces people to buy something they either don’t want or can’t afford!!

PaulE

Not only will health insurance premiums explode in price, but when you can no longer afford to buy the “government approved health insurance policies”, that HHS is larding up with mandated coverage items even as we speak, you’ll be socked with the Obamacare fines for not having the health insurance you can no longer afford. Heads the federal government wins, tails the federal government wins.

Kim

My husband (63yrs) and I (57yrs) keep ourselves healthy, we exercise, do not smoke and we eat healthly, yet our insurance cost has risen by 200.00 a month already and this is just a medeocre policy. If it goes any higher we will not be able to continue to afford health insurance. All of us Americans who at least somewhat understand what is going on need to get together somehow and fight back.(any ideas?) It sure seems like the government WANTS all of us to be on Obamacare so they have more control over who gets what kind of treatment and when The way I understand it and last I heard, and please someone correct me if I’m wrong, the government will have about 15 case workers to decide who gets treatment and when, but if the estimate is true that as much as 24 million people could end up… Read more »

Robert Fouracre

I worked over 30 years for a large corporation with total health benefits of 90% payback, my wife had it as well. When I retired I continued with my benefits and we only had to pay $50 a month to keep hers. I eventually turned 65 and went on Medicare. No secondary insurance, no problem so far. For over 10 years after I retired we paid the $50. Then she received a letter from the company, around November 2012 stating, as of August 2013 we will have to pay $250 a month to keep my wife on the same company health plan. She called the company and asked if this had to do with Obamacare. They said No, that the union let the negotiation date pass and they had to add this charge. The corporation is UPS and I believe if you look around, other companies, large and small are,… Read more »

Judy Lewis

I am 55 year old mother of a son who is 19. He goes to college and he does the work study program but it does not pay enough to pay for his food or health insurance. He has to take out the highest amount of student loans. It takes all student loans and his pell grant to pay for his classes and his dorm room. He still has to come up with money for food and personal items as well as gas for his car so he can get to work. My income is very limited and it breaks my heart to not be able to help him out more than I do. If his health insurance goes any higher I don’t see how we are going to be able to pay for it. I think this affordable health care act is going to hurt a lot of families… Read more »