49-State Analysis: Obamacare To Increase Individual-Market Premiums By Average Of 41%



49-State Analysis: Obamacare To Increase Individual-Market Premiums By Average Of 41%

One of the fundamental flaws of the Affordable Care Act is that, despite its name, it makes health insurance more expensive. Today, the Manhattan Institute released the most comprehensive analysis yet conducted of premiums under Obamacare for people who shop for coverage on their own. Here’s what we learned. In the average state, Obamacare will increase underlying premiums by 41 percent. As we have long expected, the steepest hikes will be imposed on the healthy, the young, and the male. And Obamacare’s taxpayer-funded subsidies will primarily benefit those nearing retirement—people who, unlike the young, have had their whole lives to save for their health-care needs.

41 states, plus D.C., will experience premium hikes
If you’ve been following this space, you know that I and two of my Manhattan Institute colleagues—Yevgeniy Feyman and Paul Howard—have developed an interactive map where you can see how Obamacare affects premiums in your state. (If you ever need to find it, simply Google “Obamacare cost map.”)
In September, we released the first iteration of the map, which included data from 13 states and the District of Columbia. We only had data from a few mostly-blue states because the remainder were mostly participating in the federal exchange, and the federal exchange—for reasons we now understand more fully—hadn’t released any premium information at that time. That analysis found that underlying premiums would increase by 24 percent in those 13 states plus D.C.

I suspect that in some of the states where costs go down ACA it may be because insurance is already costly due to regulation.


In my state, the premiums for 27 year olds will go up 96%. Hard to get a job. Hard to pay off school loans, and now this.


Is ANYBODY seriously surprised by this?!?!?


(and we’ll wait patiently for the Obamacare apologists to come in and admit they were wrong…I’m sure it will happen soon…)


All insurance is heavily state-regulated. Many don’t know this but an insurance company doesn’t have the luxury of being able to file for bankruptcy, although its holding company can do so even if it doesn’t have cash problems. The regulators force the insurance companies to raise premiums in order to meet the cash reserve requirements and in a low-interest rate environment there indeed may be a shortage of reserves requiring higher premiums to make up for the loss in interest revenue. (Ridgerunner and I have discussed this on this forum.)

In extreme cases, like AIG, the Fed has the authority to “bail” them out.


whoa! Worse than I thought it would be. (And I thought it was going to be bad)


I have a bad feeling about this… To quote half the hero cast of Star Wars…

My dad thinks my health insurance will be cheaper…I got a cancellation letter so we need to get me new insurance. :frowning:


The Democrat party redefines everything for their social engineering project. Thus, expensive has been redefined to mean “affordable”.


I noticed from the interactive map Obamacare is great for Coloradans.


The plan was sold on the promise that costs would go down.


NEVER was there anything in the law to reduce costs.

Tort reform was ignored.

Nothing was done to increase the supply of providers; Catholic hospitals(more than 20% of the total beds) may have to close, doctors are retiring early, and fewer talented young people will want to be employees of government enterprises.

Demand for all the new goodies will increase prices.

A tax on medical equipment will drive up costs for patients.

All the new regulations increase the cost of compliance for employers and insurance companies.

The only half possible claim is that your costs would be shifted to the “other guy”. The bad news is that most of us are the “other guy”.


Why state-run-health-exchanges-are-faring-better


People were sold another lie then.


People are too ignorant about insurance to begin with.

This is a Consumer Reports article from 2009.

Hazardous health plans
Coverage gaps can leave you in big trouble


I find your datapoint on interest rates, interesting :slight_smile: However, in no way does it explain the recent large shift in premiums, with higher deductibles. Interest rates have been low for many years. This is caused by need to pay for subsidies, no limits, and covering pre-existing conditions.


That wasn’t me. Bernanke himself admitted that low interest rates hurt savers, insurance companies, and pensions. When an insurance company like Conseco can sit with $25 billion in reserves (this is considered the policyholder’s money) the difference between 1% and 5% interest gained can be a lot of revenue lost or gained. 2001-2003 was another “low-interest” period and I was there when the life insurance companies were raising premiums. After 2004 life insurance premiums were reaching lifetime lows. Sure life expectancy was increasing but not at that rate. In 2007 rates started declining again and have been at zero since 2009. Did you read the 2009 Consumer Reports article about the underinsured policies that predominated the healthcare industry at the time? Makes today’s deductibles look miniscule in comparison to out-of-pocket expenses when you get cancer and such.

BTW Conseco (the holding company) filed for bankruptcy in 2002 and were close to it again in 2009. Of course they’ll give reasons other than the real ones for their problems.


Maybe I’m just not savvy enough to understand the plan, but it seems to me that – by requiring everyone to be covered, costs will inevitably go up. If costs go up, less people will be able to afford the out-of-pocket expenses. Which will mean that more people will need to sign up for the free government-controlled version. Which will make for less paying customers, which will in turn raise the cost for the paying people even more. And on and on.

Or am I missing something? :confused:

I have a family member who works for their local county and his deductible is going up from $500 to $5500. And he’s in the age bracket of a state where his premium (according to the map) went down. I shudder to think what’s happening for those whose premiums are going up.


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