Obamacare and Premium Increases
The Administration is preparing to announce another round of rate review grants this morning, and will likely claim this new government spending shows Obamacare is lowering premiums. However, the reality is that premiums keep going up – in many cases because of, not despite, the provisions in the law. Just yesterday an article highlighted some of the premium increases in Connecticut:
- “Many of [an insurance broker’s] clients are seeing average rate hikes for the fourth quarter 2011 and 2012 in the high single digits…”
- Another insurance broker “said his small group clients are seeing average fourth quarter rate increases in the 9 to 15 percent range.”
- A third broker for large employers said that “medical costs are still trending 11 to 12 percent higher.”
- “Connecticare will be raising fourth quarter rates on average from 6.8 percent to 8.6 percent on its small group medical plans.”
- “Anthem Blue Cross and Blue Shield has proposed an average annual rate increase of 5.5 percent…”
- “Oxford Health Plans/United Healthcare had one of the higher requests, asking regulators for permission to raise its small group rates an average of 14.4 percent.”
Some may claim that these increases of “only” 5-15 percent – well above inflation – represent “successes,” because premium growth slowed in some cases. But to the extent health care spending trends slowed, they have likely been due to the bad economy and individuals foregoing treatments – which is reflective of the “stimulus’” failure to create the jobs it promised. Moreover, the President repeatedly promised during his campaign that he would “cut” premiums by an average of $2,500 per family – meaning premiums would go DOWN, not merely just “go up by less than projected.”
Separately, Politico reports this morning that “there’s some speculation…that HHS might not release” a rule regarding “essential health benefits” “until after the 2012 elections to avoid a political land mine.” The rule in question is a huge one: The “essential health benefits” definition will determine the health insurance coverage all Americans must buy under Obamacare’s constitutionally dubious individual mandate. And the Congressional Budget Office previously found that the “essential health benefits” and related mandates in Obamacare will raise individual health insurance premiums by up to 30 percent. Today’s report suggests HHS may punt on issuing these critical regulations – creating more uncertainty for states and businesses alike – in order to avoid showing the American people just how much Obamacare will raise premiums before President Obama faces re-election.
Last March, then-Speaker Pelosi famously said we had to pass the bill to find out what’s in it. Given that today’s report suggests HHS will delay its ultimate verdict on how much Obamacare will raise premiums until after the election, some may wonder: If this Administration has to try and prevent American voters from finding out what’s in the law, how good can it be…?