NEWS: Committee Report Highlights the Looming Premium #RateShock – Premiums to Spike Nationwide, as High as 400 Percent

May 14, 2013

Insurers’ Internal Docs Show Obamacare is Anything but Affordable

WASHINGTON, DC – The House Energy and Commerce Committee on Monday released a report, “The Looming Premium Rate Shock,” which cites existing analyses from the nation’s largest insurance companies that reveal consumers could face significant premium increases. Rep. Michael C. Burgess, M.D. (R-TX), Vice Chairman of the Health and Oversight and Investigations Subcommittees, appeared this morning on Fox Business Network’s Varney and Co. to discuss the committee’s findings.

One leading national insurer estimates the total average change due to the PPACA for new business in the individual market will be a 96 percent increase in premiums. Existing customers can expect an average increase of 73 percent. New participants in the individual market could see a premium increase as much as 413 percent when new requirements on age rating and required benefits are taken into account. The average yearly cost for a new customer in the individual market grows from $1,896 to $3,708 -- a $1,812 cost increase. Many Americans, from recent college graduates to older adults, will not be able to afford the law’s higher costs.

May 14, 2013

Health premiums could hike 400 percent under Obamacare

Prepare your wallet. Health premiums are set to rise by as much as 400 percent under Obamacare

That’s according to a new report from the House Energy and Commerce Committee released this week that uses information from the nation’s largest health insurance companies to estimate the emerging costs of the Patient Protection and Affordable Care Act.

The findings: Health insurance premiums will rise, on average, by 100 percent, the Washington Free Beacon reported, but some could increase by 400 percent.

“The average yearly cost for a new customer in the individual market grows from $1,896 to $3,708 — a $1,812 cost increase,” the report states. …

To read the article online, click here

May 13, 2013

ObamaCare Rate Spikes Revealed

We always knew it was going to be bad. But today’s “ObamaCare Rate Shocker” is even worse than you might have expected.

Lost amidst the Kermit Gosnell trial, Benghazi-gate, and IRS inquisitions is a damning new report released by the House Energy and Commerce Committee documenting staggering new costs at the dawn of ObamaCare.

The report was based on the internal documents of the biggest health insurance providers in the country, which “reveal the health care law’s policies, mandates, taxes, and fees will cause major premium increases for consumers in the individual, small group and large group markets.”

The report goes on to…

“…[chronicle] the massive premium increases awaiting Americans when full implementation of the PPACA occurs in eight months, definitively contradicting the promise that the law will lower costs. As this report demonstrates, consumers purchasing health insurance on the individual market may face premium increases of nearly 100 percent on average, with potential highs eclipsing 400 percent. Meanwhile, small businesses can expect average premium increases in the small group market of up to 50 percent, with potential highs over 100 percent.”

I don’t pretend to be an expert on insurance premiums. However, I’m male, I’m in good health, and I’m under the age of 35—which means I’ll probably experience the steepest sticker shock. This is bound to accelerate my learning curve. …

To read the article online, click here.

 

May 13, 2013

The Myth That Obamacare Will Only Affect the Uninsured

There’s a sort of myth that only those who are currently uninsured will be significantly affected by Obamacare. They’ll be helped, and everyone else won’t notice a thing. For defenders of the law, it’s a way to tell the majority of individuals in the country that they have little to worry about, because little of consequence will change. …

So is everyone who gets insurance from work not going to notice the law? Not exactly. Large employers and their workers will probably see the smallest impact, but many small businesses and their employees can expect costs to rise. As The Washington Post noted yesterday, the law imposes a new tax on health insurance—a tax that will be passed on to customers, mostly small employers who buy insurance in the small group market.

In many states, these will not be small increases. Estimates provided by insurers to GOP officials on the House Energy and Commerce Committee, meanwhile, suggest that double-digit premium increases will be common. (The committee asked insurers to provide estimates already completed before the committee’s request was received, so it is unlikely that insurers were tailoring their estimates to what they thought committee officials wanted to hear.) In Maine, small group premiums could rise by 55 percent. In Florida, increases could be anywhere from 13 to 75 percent. An 11-state analysis by health insurer WellPoint found that, on average, small group premiums will rise by 13-23 percent. …

To read the article online, click here.

 

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