Obamacare at Three Years: Premiums are on the Rise

If you are having trouble viewing this message, click here to view it online

Obamacare: Projected Premium Increases by State Remember that repetitive presidential promise to “cut the cost of a typical family’s premium by up to $2,500 a year”? As 2014 and full implementation of Obamacare get closer, it is crystal clear that won’t be the case. Obamacare’s most onerous insurance regulations will directly cause insurance premiums to skyrocket, particularly in the individual and small group markets. While there are many provisions that will increase premiums, two will have the most expensive impact: Age rating restrictions. Obamacare limits variation in premium costs to a ratio of 3 to 1 based on age. But as Heritage research shows, “The natural variation by age in medical costs is about 5 to 1—meaning that the oldest group of (non-Medicare) adults normally consumes about five times as much medical care as the youngest group.” This means that under Obamacare, young adults will pay significantly higher premiums than they would have prior to Obamacare, and older adults will pay only slightly lower premiums. New benefit mandates and cost-sharing rules. Heritage expert Ed Haislmaier explains, “The new law adds a number of health care services that insurers must cover and in some cases restricts the ability of insurers and employer self-insured health plans to impose limits on the amount of services patients can consume. This combination will drive up health plan costs and premiums for both individual insurance and employer-group coverage.” In addition, Obamacare prohibits cost sharing on many preventative services, which will dramatically increase utilization of those services—pushing premiums even higher. What is the Projected Increase in Your State? >> Obamacare Pre-Existing Conditions Coverage: Low Enrollment, High Costs Obamacare Option Puts Patients and Taxpayers at Risk Even Rebranded, Obamacare Exchanges Are Still Unworkable Obamacare at Three Years: Failing Small Businesses VIDEO: The Bloggers Briefing on Obamacare’s 3rd Anniversary with Rep. Steve King   7 Million AMERICANS ARE PROJECTED TO LOSE THEIR EMPLOYER-SPONSORED INSURANCE BY 2022 Obamacare's broken promises are having devastating effects on our health care. Learn More >>     About The Heritage Foundation Founded in 1973, The Heritage Foundation is a research and educational institute — a think tank — whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. The Heritage Foundation | 214 Massachusetts Ave NE, Washington, DC 20002 | 202.546.4400 | heritage.org