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Sticker Shock: Obamacare Increases Premiums in 42 States

And at the current rate it would take nearly 50 years to sign up the 30 million projected to be enrolled within the next five.

by
Rodrigo Sermeño

Bio

October 22, 2013 - 12:04 am
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In May, Emanuel said he worried young people would be “bewildered” by health reform in general and the insurance exchanges in particular.

“The consequence would be a disproportionate number of older and sicker people purchasing insurance, which will raise insurance premiums and, in turn, discourage more people from enrolling. This reluctance to enroll would damage a key aspect of reform,” Emanuel wrote.

Many young adults face a penalty for not enrolling that is projected to be far less than the costs of insurance coverage they could receive, Gonshorowski said.

The penalty for non-compliance starts at $95 for the first year.

If low-cost individuals are encouraged to pay the penalty and are not participating in the exchanges because of high premiums and other associated costs, the risk pool could be dominated by higher-cost enrollees, leading to further increases in premiums. This could begin a  “rate spiral,” Gonshorowski said, which would drive even more young people out of the market.

Gonshorowski’s analysis, however, also shows that some states will see reductions in premiums.

Young people in New York are expected to see a nearly 29 percent price reduction. And for young people in Colorado, premiums are down 30 percent thanks to the exchanges. Residents of New Jersey, Rhode Island, and Ohio will also see the costs go down

He explained that this is because those states have already over-regulated insurance markets that have led to sharply higher premiums through adverse selection.

“If you are already regulated to a point that looks and smells like the ACA,” he said, “when you actually adapt to the law, then you are not adapting so much.”

The Congressional Budget Office estimated that around 7 million people will enroll in the exchanges in the first year. This means that approximately 270,000 would have to enroll each week.

The Obama administration has yet to release official numbers regarding how many Americans have signed up for insurance. White House spokesman Jay Carney said Wednesday the initial numbers will be released in mid-November.

The administration has projected that 500,000 people would enroll in the first month. As of Tuesday, however, Gonshorowski said roughly 50,000 people have enrolled in the exchanges. This means that at the current rate it would take nearly 50 years to sign up the 30 million projected to be enrolled within the next five.

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Rodrigo is a freelance writer living in Washington, D.C.

Comments are closed.

Top Rated Comments   
Come on now, look on the bright side. Premiums are going up in less than 90% of the states. More than 10% of the states are even seeing a drop!

A couple of more comments like that and I figure I'm qualified to take Carney's job.
51 weeks ago
51 weeks ago Link To Comment
anyone who is under 30 that can afford thousands a year for healthcare they will NOT use working a part time job is VERY few & far between zero and none! Not very many of those "young people" will suffer through 2 years of that kind of income drain for absolutely ZERO return on their money and instead of being all kinds of worried that the IRS will "take" their tax returns will just start to claim 2, 3, 4, 5, dependents on their income tax returns so that there is no money for them to take. The most callous generations that have been raised to only care about themselves and their instant gratification lifestyles are the same ones obumbles is pinning all his hopes on them just rolling over and paying for everyone else working their 1-2-3- part time jobs?

If you believe THAT will happen then I have a space station ready to sell to you with a brand new obamascare bumber sticker on it.....
51 weeks ago
51 weeks ago Link To Comment
Of course they are all going up anyone who believed what the Democrap MORONS promised with OBAMACARE i.e. coverage of 30-40 Million MORE people, compel pre-existing condition coverage, mandate a whole list of things that MUST be covered even where NOT appropriate either through age gender or religious conviction and who STILL believed it would be CHEAPER and more EFFICIENT must be a CRETIN.
51 weeks ago
51 weeks ago Link To Comment
All Comments   (17)
All Comments   (17)
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my friend's mother makes $79 an hour on the internet. She has been fired from work for five months but last month her check was $15468 just working on the internet for a few hours. over here....www.Bay95.ℂom
51 weeks ago
51 weeks ago Link To Comment
So who among us still thinks this has anything to do with health care?

This entire scheme is little more than a monster case of regulatory capture by insurance companies that have become cronies of Obama and his crew, with the added incentive for Democrats to include disguised tax increases that will eventually piss off even their base.

One more example of the ongoing criminal enterprise that is the Democrat party.
51 weeks ago
51 weeks ago Link To Comment
I'm 33 and my insurance will go up 145%, under Obamacare, costing >$3000 a year. I can't afford insurance.
51 weeks ago
51 weeks ago Link To Comment
When asked for their take on the report, the bloggers at the Daily Kos replied "Shut up. Shut up! SHUT UP! SHUT UP!!!!"
51 weeks ago
51 weeks ago Link To Comment
40,000,000 uninsured people. 76 days to sign up (10/1-12/15) = 526,316 people need to be able to sign up each day. Subtract poor website performance for 22 days. 40,000,000, 53 days 7,500,000+ / day!!! Not gonna work
51 weeks ago
51 weeks ago Link To Comment
Oops, typo: 750,000+/day.
51 weeks ago
51 weeks ago Link To Comment
and it is time to take back the language.

People who can't sign up or don't sign up are not going to get fined, THEY ARE GOING TO BE TAXED.

and when government speaks of a subsidy for people, what they mean is MORE TAXES on others.

Anyone notice the 40% excise tax that a person with cadillac health insurance is going to be subjected to. Maybe that is why unions are really upset because can you imagine having insurance, and taking care of your employees or self and because you did so to the best of your ability you are now going to be taxed an extra 40%.

51 weeks ago
51 weeks ago Link To Comment
I believe the 40% excise tax for Cadillac plans starts in 2016 for employer plans costing in premiums more than $10,200 for an individual and something like $27,000+ for family. The 40% is placed on any amount in excess of those thresholds. Employers will have three choices: eat the excise tax, pass the tax on to employees, cut down on benefits.
51 weeks ago
51 weeks ago Link To Comment
Mr. Sermeño
I found this page a few days ago, it is a bit wordy, but read please read it and see if it does not say the penalty will be per month. The link is from Cornell University Law School.
http://www.law.cornell.edu/uscode/text/26/5000A
51 weeks ago
51 weeks ago Link To Comment
I take it to mean that you are penalized (read: taxed) for any month you go without proper insurance. If you're w/o for 1 month, at the end of the year you pay 1/12 of your total penalty.
51 weeks ago
51 weeks ago Link To Comment
Come on now, look on the bright side. Premiums are going up in less than 90% of the states. More than 10% of the states are even seeing a drop!

A couple of more comments like that and I figure I'm qualified to take Carney's job.
51 weeks ago
51 weeks ago Link To Comment
What if they held a healthcare takeover and nobody came?
51 weeks ago
51 weeks ago Link To Comment
That bit about Colorado rates staying the same is not quite true. It may be true that equivalent plans cost the same, but last year my son could purchase a minimal coverage plan (for accidents). This year he has to buy a bronze or extortion plan with a bunch of unnecessary stuff in it for more than double the minimum plan.
51 weeks ago
51 weeks ago Link To Comment
But now he'll have maternity coverage in case of an accident.
51 weeks ago
51 weeks ago Link To Comment
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