Here’s How We’ll Be Forced To Pay 146 Percent More For Insurance Under Obamacare
May 31, 2013
You’re going to be forced to buy it, whether you like it or not.
As states gear up to create the health insurance exchanges demanded under President Obama’s Affordable Healthcare Act they’re finding out that private policies for individuals aren’t going to be quite as affordable as legislators promised. In fact, in California, individual healthcare premiums will increase by as much as 64-146 percent.
As recently as last week, Peter Lee, executive director of California’s healthcare exchange, said that California’s version of the healthcare exchange would actually reduce premiums. “These rates are way below the worst-case gloom-and-doom scenarios we have heard,” boasted Lee.
But according to Forbes contributor, Avik Roy, Lee was comparing apples to oranges. An increase is inevitable because most of the current individual policies do not meet the mandates set forth by Obamacare.
“He was comparing apples—the plans that Californians buy today for themselves in a robust individual market—and oranges—the highly regulated plans that small employers purchase for their workers as a group. The difference is critical.”
One of the key mandates that will effect premiums once Obamacare kicks in is the requirement that health insurers provide coverage for people with pre-existing medical condition. As Roy explains, “Forcing insurers to cover everyone with pre-existing conditions drives premiums upward. If you know you can buy insurance after you’re sick, you have every incentive to drop out of the system now, and wait until you’re sick to buy insurance.”