Jun 2, 2015

Premium AND Administrative Costs Will Rise Under Obamacare

Obamacare is packed with uncertainty. Will your health care plan exist next year? Will another deadline be delayed again? Will the health care websites actually be working the next time I try to visit it?

With all these uncertainties, there is really only one thing we know for sure: under Obamacare, costs will go up. 

Two reports over the last week found that premiums could go up for millions of Americans next year and that “overhead costs are exploding under Obamacare.”

  • Despite President Obama’s claim that Obamacare would save the typical family up to $2,500 per year, we know that premium costs have been going up for a while now. Politico reports that millions could be hit with added costs next year. One insurer is even proposing increasing rates by up to 50 percent.
  • The Wall Street Journal also reported that “major carriers from around the country are proposing big increases in the premium rates paid by consumers who buy insurance policies on their own.” They note that some market leaders in the health insurance industry are planning double digit increases next year.
  • This came days after a study found that “administrative costs for healthcare plans are expected to explode by more than a quarter of a trillion dollars over the next decade,” according to a report by the Hill. It seems that when people have to follow an extremely complicated and vague law with a multitude of new regulations, it costs trillions to comply.

Washington can’t make health care affordable by passing a law saying that it’s so. Real affordability comes when companies can offer a variety of choices, compete for buyers, and drive down prices in a free market. Freedom is the root of affordability, which is something that this Administration just doesn’t understand.