Obamacare Premiums Rising Will Cause More than Sticker Shock
Surveys, CBO and Insurance Financial Reports Provide Clear Warning
(Washington, D.C.) – In the days ahead, insurance companies will begin to report their earnings for the first quarter of the year. These reports are expected to signal likely increases in premiums for plans sold under the Affordable Care Act, also known as Obamacare. Premiums have already risen as the law took effect – with a survey conducted by Morgan Stanley earlier this month showing significant increases in small group and individual rates. While the average increases are around 11-12 percent, consumers in some states are seeing insurance rate shock. In Delaware rates are up by 100 percent. States like New Hampshire, Indiana, California, Connecticut, Michigan, and Florida have also seen dramatic cost increases due to the law. The analysts found that the main driver of the higher costs were the requirements of Obamacare.
Daniel Garza, Executive Director of The LIBRE, Initiative released the following statement:
"With growing indications that insurance premiums are again on their way up, hard-pressed working families will have to tighten their belts even more to pay for the new health care law. For millions of people it simply isn't affordable. And the administration's sales pitch is a politically-motivated effort to convince more people to buy into a bad system that needs repair.
Our health care system is desperately in need of improvement, and in 2009 the American people were promised it would be 'affordable.' Instead, taxpayers will have to pay nearly $2 trillion for this system. Premiums are rising across the country, deductibles are high and people are losing access to the care they desperately need. And instead of looking for innovative ways to reform the system, the president and his allies are imposing more of the same regulations that caused these problems in the first place. The president must consider the facts and start the process to reform the reform."