By Tom Quiner
Even the New York Times admits it. Your health insurance is going to get a lot more expensive.
When America’s most vocal media champion for socialized medicine runs the story on their front page, well, you know it’s bad. Here’s their reporting:
Health insurance companies around the country are seeking rate increases of 20 percent to 40 percent or more, saying their new customers under the Affordable Care Act turned out to be sicker than expected.
Federal officials say they are determined to see that the requests are scaled back. Blue Cross and Blue Shield plans — market leaders in many states — are seeking rate increases that average 23 percent in Illinois, 25 percent in North Carolina, 31 percent in Oklahoma, 36 percent in Tennessee and 54 percent in Minnesota, according to documents posted online by the federal government and state insurance commissioners and interviews with insurance executives…
Jesse Ellis O’Brien, a health advocate at the Oregon State Public Interest Research Group, said: “Rate increases will be bigger in 2016 than they have been for years and years and will have a profound effect on consumers here. Some may start wondering if insurance is affordable or if it’s worth the money.”
As predicted by conservatives, Obamacare would attract more sick people. It has … and now it’s time to pay the piper.
At the precise moment the industry screams for more competition to help hold down costs, competition is actually drying up as big insurers merge, thanks to perverse incentives built into Obamacare.
Not only that, but all those insurance co-ops set up under Obamacare are bleeding money.
The Wall Street Journal reports:
“Many of the 23 co-ops that were established underpriced their coverage. When they delivered low premiums on the ObamaCare exchanges two years ago, Democrats hailed it as a triumph.
But now almost every co-op is financially underwater, on the hook for federal loans that amount to more than 100% of the total value of their capital and surplus. Some—like Arizona’s Meritus Mutual Health Partners—are nearing 1,000%, according to rating agency A.M. Best.”
Standard and Poor’s reports that all but five of the co-ops had negative cash-flow heading into the end of last year. Iowa’s lone co-op went belly-up last year.
Obamacare will continue to be a hot topic in the next election cycle.