ObamaCare's costs: Rising, rising, rising ...
Confirming that the president's dubious claim about ObamaCare cutting costs is flat-out wrong, a new Society of Actuaries report says it will force insurers to pay 32 percent more, on average, for claims on individual health policies.
Those are the sorts of policies that Americans who don't get coverage from their employers or otherwise lack health insurance must buy in new state insurance exchanges or face fines, starting Oct. 1. And the reason why such claim costs will rise so dramatically — by amounts ranging from more than 20 percent in Florida to about 80 percent in Ohio and Wisconsin, according to the report — is as obvious as it was the day ObamaCare was introduced in Congress.
The more than 32 million uninsured Americans to be covered via the exchanges will form a health-insurance pool that includes many sicker people. The report says insurers' “spending on sicker people and other high-cost groups will overwhelm an influx of younger, healthier people into the program,” according to the Washington Guardian.
The Obama administration claims the actuaries' report misses ObamaCare's big picture, ignoring tax credits and subsides for exchange customers and insurers. But one actuary who worked on the report tells the Guardian that claim costs are “the most important driver of health care premiums” — and Medicare's recently retired chief actuary says the report does “a credible job.”
Thus, it's clearer than ever that the administration did anything but a credible job with its ObamaCare cost-cut claims.