Democrats continue to try to dismiss the evidence that Obamacare will dramatically increase the cost of insurance for people who buy it on their own. The Ohio Department of Insurance announced that, based on the rates submitted by insurers to date, the average individual-market health insurance premium in 2014 will increase 88 percent relative to 2013. “We have warned of these increases,” said Lt. Gov. Mary Taylor in a statement. “Consumers will have fewer choices and pay much higher premiums for their health insurance starting in 2014.”
But the bottom line is this: President Obama and then-House Speaker Nancy Pelosi promised that premiums would go down for those who already have insurance. But middle-class Ohioans will pay more in taxes to pay for subsidies, and more in premiums.
And now you know why the Republicans wouldn't back it, and would not vote for it. But the Democrats, well, once again, they voted with their emotions, and very little brains, ENJOY!!! Oh, and thank you so MUCH Obama!
First, the "average premium" is the average of all prices *offered* on the Ohio exchange--not purchased. If you are on the Ohio exchange I would not recommend purchasing the plan with the average premium or the high premiums that are pulling that average up. Especially since all plans on the exchange are actuarially comparable.
We expect that competition on the exchanges will bring down the average *purchased* premiums as smart consumers (I don't know about you Tea Brains) will choose to purchase lowered price, more efficient plans that offer comparable benefits. This is what we call a market.
Second, the 88% figure does not include the premium subsidies many people will get on the exchange. So don't worry Ohio Tea Brains! Even though you choose to buy expensive plans for no good reason, you'll still pay less than the 88% premium increase you were promised by Fox News.
California, for it's exchange, simply decided only to let the lowest price plans participate in the exchange. The premiums offered on that exchange are much lower--as low as $40 a month for a 40-year old after subsidies, or $300 a month with no subsidy. That's pretty cheap. In fact, for the most part, we health analysts have been pleasantly surprised by the premiums available on the exchanges.
But just wait 6 months. When the world doesn't implode I want you all to come back here and let us know just how foolish you feel. See you then.