A new study from the well-respected and non-partisan National Bureau of Economic Research (and published by Brookings Institution), overcomes the limitations of these prior studies by examining what happened to premiums in the entire non-group market. The bottom line? In 2014, premiums in the non-group market grew by 24.4% compared to what they would have been without Obamacare. Of equal importance, this careful state-by-state assessment showed that premiums rose in all but 6 states (including Washington DC).
Of course, Obamacare enthusiasts will argue that I’m ignoring all the subsidies provided to Exchange members. It’s certainly true that for those lucky enough to qualify for such subsidies, the typical size of a subsidy in any given state would have been sufficient to protect such individuals from the premium increases shown in the chart above. But that ignores the fact that out of an estimated 13.2 million people covered in the non-group market in second quarter 2014 (Kowalski’s estimate), only about 7 million qualified for subsidies. Thus, there were 6.2 million in the non-group market who had to absorb these premium increases without the benefit of any help from Uncle Sam.
Moreover, the fact that federal taxpayers were handed the privilege of having to offset such premium increases using their hard-earned tax dollars should in no way obscure the reality that Obamacare caused premiums to rise in the first place.
The net result? Taxpayers are on the hook for a 24% increase in subsidy expenses due to ♡bamaCare!!!’s requirements and strictures.
But I’m sure we’ll make it up in volume.