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Defying the Odds

Defying the Odds
New book about the 2016 election.

Monday, December 16, 2013

Obamacare Problems Are Not Going Away

An AP-GfK poll finds that people with health insurance blame Obamcare for their increasing premiums and deductibles.
The poll found a striking level of unease about the law among people who have health insurance and aren't looking for government help. Those are the 85 percent of Americans who the White House says don't have to be worried about the president's historic push to expand coverage for the uninsured.
In the survey, nearly half of those with job-based or other private coverage say their policies will be changing next year - mostly for the worse. Nearly 4 in 5 (77 percent) blame the changes on the Affordable Care Act, even though the trend toward leaner coverage predates the law's passage.

Sixty-nine percent say their premiums will be going up, while 59 percent say annual deductibles or copayments are increasing.

Only 21 percent of those with private coverage said their plan is expanding to cover more types of medical care, though coverage of preventive care at no charge to the patient has been required by the law for the past couple of years.

Fourteen percent said coverage for spouses is being restricted or eliminated, and 11 percent said their plan is being discontinued.
At The Wall Street Journal, economist Michael Boskin says that things will get worse:
The "sticker shock" that many buyers of new, ACA-compliant health plans have experienced—with premiums 30% higher, or more, than their previous coverage—has only begun. The costs borne by individuals will be even more obvious next year as more people start having to pay higher deductibles and copays.

If, as many predict, too few healthy young people sign up for insurance that is overpriced in order to subsidize older, sicker people, the insurance market will unravel in a "death spiral" of ever-higher premiums and fewer signups. The government, through taxpayer-funded "risk corridors," is on the hook for billions of dollars of potential insurance-company losses. This will be about as politically popular as bank bailouts.
The "I can't keep my doctor" shock will also hit more and more people in coming months. To keep prices to consumers as low as possible—given cost pressures generated by the government's rules, controls and coverage mandates—insurance companies in many cases are offering plans that have very restrictive networks, with lower-cost providers that exclude some of the best physicians and hospitals.