Administration Uses Back To The Future Math to Deny #RateShock


Why isn’t HHS comparing rates to what Americans pay today?

The administration has finally released more data on health premiums for next year (data that was supposed to be published weeks ago). Unfortunately, the important details of the report are buried under a tremendous amount of what Chairman Fred Upton (R-MI) described as “creative arithmetic.” Rather than comparing what Americans will pay next year to what they are currently paying, the administration ignored the hard data available today, and instead, it forecast what rates will be in 2016 and worked backwards to 2014. With that back to the future logic, you would need a time traveling DeLorean to avoid Obamacare’s rate shock.  

The much simpler analysis is that premiums will not be lower than they are today. The Mangione family in Kentucky, whose premiums are tripling next year, knows that, as do Americans in Wisconsin, Georgia, Ohio, and Indiana. In fact, premiums for some could skyrocket by as much as 400 percent next year.

As Forbes explains, “For months, we’ve heard about how Obamacare’s trillions in health care subsidies were going to save America from rate shock. It’s not true. If you shop for coverage on your own, you’re likely to see your rates go up, even after accounting for the impact of pre-existing conditions, even after accounting for the impact of subsidies. The Obama administration knows this, which is why its 15-page report makes no mention of premiums for insurance available on today’s market. Silence, they say, speaks louder than words. HHS’ silence on the difference between Obamacare’s insurance premiums and those available today tell you everything you need to know. Rates are going higher. And if you’re healthy, or you’re young, the Obama administration expects you to do your duty and pay up.”