Multiple Studies Show Insurance Costs Rising Next Year
43 Percent of Enrollees Report Affordability Concerns
(Washington, D.C.) – Despite promises of lower insurance premiums under the new health care law, rates will rise again next year, according to a recent survey by Avalere Health. The firm found that in 8 of 9 states surveyed, rates would be rising for purchasers of silver plans – the second tier of plans available under the exchanges. A separate review by the Wall Street Journal found that in all 10 states where companies have filed rates for next year, the largest insurer in each state plans to increase premiums by between 8.5 and 22.8 percent. In some cases, these insurers appear to have entered the market with low rates intended to help them grab market share, and now plan to raise their rates. Whatever the reason, these rate increases will put pressure on consumers – and 43 percent already say they are having a hard time paying premiums. Nearly 40 percent are not even sure they can cover the cost of routine medical care. Additionally, the design of the law means that premium increases lead to increases in federal funding – so the cost of the law to the taxpayers rises.
As a result, at least one prominent analyst is warning that the ACA may be leading to the growth of a "chronically uninsured class," who earn too much to qualify for large insurance subsidies, but who cannot afford the inflated cost of policies under the law. The Congressional Budget Office has determined that once the ACA is fully implemented, there will never be fewer than 30 million Americans uninsured.
Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:
"The promises the president made – more choice, better quality of care, lower premiums, and more – simply have not come to pass. The system is not working as we were told that it would. That things would get progressively worse was as predictable when this passed as it is now. This is because of the structural elements inherent in this federal program – the one-size-fits-all centralization, the price controls that lead to distortion of real costs and the coercive bureaucracies. They cause bad incentives for the consumer will not work in a market economy.
The problems with the new health care law will not just go away; they're getting worse. Rates have already increased, and they are going to go up even more for most ratepayers. With many struggling to pay the cost of this law, and not even sure they can afford routine medical care, it's clear there are problems. The administration should reach out to Congress and to the private sector for better ideas. They should start listening to the people and working to reform the reform."