Oops.
This was hardly the first ObamaCare promise to fall by the wayside. Indeed, the entire first three years of the new health-care law have been one long story of unfulfilled expectations.
Take, for example, the “affordable” part of the Affordable Care Act. While the recession has artificially held down health-care costs and the associated rise in insurance premiums over the past couple of years, now that the economy has begun to recover, both are expected to rise rapidly. For example, the American Society of Actuaries estimates that claims costs (the primary driver of premiums) for the individual insurance market will rise by an average of 32% over the next three years.
Rising health-care costs are already beginning to show up as higher premiums. California health insurers are proposing increases for some customers of 20% or more: 26% by Blue Cross, 22% by Aetna and 20% by Blue Shield.
In New York, the Department of Financial Services has limited insurers to a 7.5% increase this year, better but still substantial. And, according to The Wall Street Journal, insurers are warning that premiums in the individual and small group markets could double in the next few years. While these are worst-case scenarios — and it would be unfair to attribute all the premium rise directly to ObamaCare — there is no doubt that the new health-care law will drive premiums up.
Even HHS Secretary Kathleen Sebelius admits that some Americans will face higher premiums, especially for the young and healthy. “It’s sort of a one-to-one shift,” Secretary Sebelius told reporters, “some of the older customers may see a slight decline, and some of the younger ones are going to see a slight increase.”
That is because of ObamaCare’s “community rating” provisions, which prohibit charging premiums based on a person’s health and limit the degree to which insurers can charge based on age.
Then again, the premium increases might not be so “slight” after all. According a survey by the American Action Forum, healthy young people in the individual or small-group insurance markets can look forward to rate increases averaging as much as 169%.