The cost of complying with Obamacare is forcing insurance companies to abandon many state markets.


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Finding out what’s in it: The cost of complying with Obamacare is forcing insurance companies to abandon many state markets.

In February 2010, a month before passage of the law, Obama explained at a bipartisan health care summit at the Blair House, “What we’ve said is that if you join one of these exchanges, you will have choice and you will have competition. You will have a menu of private insurance options that you’ll be able to purchase.”

Increasing the number of insurance options for individuals was one of the key ways in which Obama claimed the law would be able to drive down insurance costs. But with less than 70 days before the exchanges are set to open, large insurers are pulling out of states as a result of the health care law, resulting in less choice for consumers, not more.

This is exactly what happened in New York in 1992 when the state legislature passed a law with many of the same components as Obamacare. Insurance companies fled the state, and premiums went up.

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5 comments

  • Garry

    I always thought Obamacare was designed as a way station toward a single-payer system; whether or not Obamacare functions as a healthcare system is immaterial, so long as it destroys private sector health systems and leads to universal healthcare.

  • R. Cotour

    I don’t know if anyone here has noticed but Obama is a LIER. (as are they all)

    How do you know he is lying?

    Of course, he is a politician and a lawyer, his mouth is moving.

  • joe

    Obama care is really not about health care, its about nationalizing a complete industry, it is the single largest intrusion into your private matters ever foisted upon the citizens of this fine country, so call apolitical entity’s such as the IRS are going to administer eligibility and fines, fees or taxes based on your personal situation and subjugate doctors and health care professionals to government whims, ultimately it is such an unworkable system that it will lead to single payer socialist medicine that the dems have always wanted, this government is resembling Thomas Hobbes Leviathan more and more every day!

  • Edward

    Goodness gracious, Garry. If you are right that it will lead to a single-payer system, then according to Obama there will be even *less* competition (thus even higher prices and poorer service), and R. Cotour (below) would be right.

    Oh my!

  • Pzatchok

    Now they want to pass a law/proposal to create a new price control board so that medical pricing can be standardized across the US.
    They are sighting the price controls of medicare/medicaid as a working example that didn’t destroy the medical industry.

    Like I said a long time ago. The only way to control the medical industry is to take total control of it from the manufacturers of band aids to education costs to the final cost from the hospitals.

    They are now thinking of taking over the final costs thinking that will work. They will next try to control the cost of the manufacturers. Then they will control the costs of medical education when they find less doctors being educated.
    The whole time forcing you to buy higher and higher cost insurance.
    In the end the last ones making a profit will be the insurance industry and eventually they will be cost controlled out of the business.

    Total control could never have happened if they tried it all at once. But much like a pot of cold water set to boil with a frog in it, the frog will not realize whats happening until its to late.

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