Sunday, November 15, 2015

The Obamacare cost explosion

Twin Cities Pioneer Press ^ | November 14, 2015 | By John Tyler 

It is time to come to grips with the inevitable health insurance price increases being caused by the federal Affordable Care Act (ACA) known as "Obamacare."
Obamacare's short-term sweeteners and phase-ins are behind us, and the fundamentally flawed structure of Obamacare and its true costs are exposed. The result: substantially increasing individual and small-group health insurance prices.
Given the mandates required by the ACA law, these are not likely to recede any time soon.
In Minnesota, small-group prices skyrocketed by up to 94 percent in 2014. Individual plans are up by an average 31 percent, and up to 60 percent in 2016, according to the Commerce Department. Minnesota insurance companies providing individual policies have already lost over $394 million since the implementation of Obamacare. They have no choice but to increase premiums to cover increased costs of care.
Why is this happening?
Think about it. If someone asked you to pay for all their future health care in exchange for a fixed monthly price, wouldn't you want to know what you would be liable for so you could set the appropriate price? What if you were required to pay their claims, but they were not responsible to continue paying you once you had paid out your part of the deal? You would lose big, just as the nation's insurance carriers have.
Obamacare tells health insurers it is illegal to ask health questions before providing insurance and illegal to deny claims for those who apply for insurance after the conditions occur, including for all future claims as well. Incentives for healthier behavior and better consumer decision-making are eliminated. . .
(Excerpt) Read more at twincities.com ...

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