According to Ohio’s Insurance Department, Obamacare will cause healthcare rates to rise next year by 88 percent.


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Finding out what’s in it: According to Ohio’s Insurance Department, Obamacare will cause healthcare rates to rise next year by 88 percent.

What are the drivers of the increase? According to Milliman, the two biggest drivers are (1) risk pool composition changes, such as forcing the young to subsidize the old, and the healthy to subsidize the sick; and (2) Obamacare’s required expansion of insurance benefits, particularly its mandated reductions in deductibles and co-pays.

This is a significant concept to understand. Some people have the impression that the main reason that rates are going up under Obamacare is because of the law’s requirement that insurers cover people with pre-existing conditions. But that accounts for only a fraction—around a quarter—of the rate hike. The rest comes from all the other things that Obamacare does, such as forcing people to buy richer insurance benefits; to buy products with all sorts of add-ons they might not need; to pay Obamacare’s premium tax; and to pay a lot more, if they’re young, to subsidize older individuals.

In other words, you won’t be able to buy the plan you want. Obamacare forces you to buy a more expensive plan, even if you don’t need it.

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2 comments

  • wodun

    Not needed? What about not wanted?

    I think I am going to start a mobile chiropracter clinic and charge whatever Obamacare covers. Drive around giving free massages and adjustments.

  • Publius 2

    In this administration, as in the Clinton administration, the term “parsing” is paramount. Obama said if you like the insurance plan you have, you can keep it. The problem is he neglected to mention that Obamacare would force radical changes in insurance plans, so existing plans will disappear. Of course, these people rely on bald-face lying as well, such as Nancy Pelosi denying she had said — only one year earlier and on the record — that everyone’s healthcare premiums would be lower under Obamacare. Once again, this effort has nothing to do with healthcare and everything to do with exerting control over our entire lives. And Kathleen Sebelius demonstrated just a week ago how the death panels will operate, when she refused to use her authority to help save the life of a young girl suffering from severe cystic fibrosis and in need of a lung transplant. Bad news, bad news, and bad news. There is no clearer foreshadowing of the future, unless this monstrosity is shut down. And it can be shut down — immediately. It requires the GOP leadership in the House to stop feeding the beast by cutting off its funding. They have not done so, and consequently in next year’s election it might be wise for the constituents of these leaders to ask them why — and act on the answer.

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