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Obamacare Premiums Increase - What does that mean? From: NBC News "Delighted Republicans celebrated the news Tuesday that Obamacare premiums are going up by more than 20 percent on average next year. Late on Tuesday, the Health and Human Services Department admitted to the widely predicted figure, while quickly saying that nearly 85 percent of people buying health insurance on the Obamacare markets wouldn't be paying that much because of federal subsidies. While it was bad news politically for President Barack Obama's signature healthcare law, the rise in premiums doesn't mean Obamacare is on its last legs. Health officials and other experts pointed out that most Americans do not get their health insurance on the Obamacare exchanges. Not only that: health care costs have been going up for years — that's why health reform started in the first place. "Warning: Reports of big premium hikes apply to a small percentage of the population, not the vast majority covered by employers, Medicare, Medicaid," tweeted Larry Levitt of the nonprofit Kaiser Family Foundation. Related: Average Family Healthcare Costs Have Tripled Since 2001 More than 60 percent of Americans get health insurance through an employer. Another 16 percent use Medicare or Medicaid and 9 percent are covered by individual insurance plans - including Obamacare. Another 2 percent are covered by military plans such as Tricare or the Veterans' Administration. Premiums for employer-sponsored plans have also been rising for years, although not at the sharp annual rates that the Obamacare exchanges will see in 2017/ A report out Tuesday from health consultancy firm Avalere Health says many of those slapped with big premium increases can switch plans within the exchange program and get a better deal. Nonetheless, the news sent Republicans into a frenzy of delight — especially Republican presidential nominee Donald Trump. "I can say that all of my employees are having a tremendous problem with Obamacare," Trump said at a rally in Florida. "What they're going through with their health care is horrible because of Obamacare, so we'll repeal it and replace it." Apparently Trump, as many republicans, do not understand that Donald Trump provides health insurance to 95% of his employees as stated by one of Trump's key management people. That means that 95% of Donald Trump's employees are not on Obamacare. This is another clear lie emanating from Donald Trump and parroted by republicans. Beyond that republicans are loath to admit to the detrimental effect their obstruction and refusal to state expansion has had on ACA premiums. The refusal by 18 republican governed states has cost their citizens in increased premiums and it has had an additional detrimental effect by effecting economies of scale. By way of explanation, increasing the pool of covered individuals costs of care and resultant premium costs are diminished. The obverse is also true. By decreasing the pool of covered individuals, costs of care per individual is increased with resultant increases in premiums costs. |
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