When it comes to Olympic medals, the winners are clearly the ones wearing gold medals. Runners-up wear silver, and third place finishers don the bronze medal. When it comes to Obamacare, it seems that everyone is a loser. The Daily Caller News Foundation, in their investigative reporting of the costs of the Affordable Care Act, have concluded that the costs are much higher than the government claims.
The government claims that the cost for healthcare insurance will only rise by 7.5 percent. However, the Daily Caller News Foundation dug a little deeper into those claims and has concluded that the costs are much higher. The government’s claim, that the costs have only risen by 7.5 percent, is based on an averaging of the cost increases of the healthcare exchanges from 37 participating states and only looked at their Silver level plan. Depending on where one lives, the increases can be higher than 45 percent. Also, the 7.5 percent increase reported by the government does not take into consideration increases in all available plans, only the Silver-level plans. The Daily Caller News Foundation claims that if one averages all the increases from all available plans, then the cost increases to 20.3 percent. In other words, the government only reported on the cost increases of one plan, apparently in an effort to portray the ACA as a success. The losers, in the case of the ACA and healthcare coverage premiums, are the consumers who will be forced to pay much higher premiums and co-pays in the government run healthcare insurance exchanges.
The reason why the increases are happening is because the insurance companies are losing money. Only 36 percent of the insurers made money through the ACA exchanges. The other 64 percent of the insurers lost money, and 28 percent of those insurers reported losses of over 10 million dollars each. The reasons they lost money were reportedly due to the fact that, “The health law remade the individual market, forcing insurers to sell plans to all consumers and banning them from charging rates based on health conditions. Insurers struggled to predict their costs, and many didn’t set rates high enough to cover the care of those they enrolled.”
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Paul Ryan, newly elected Speaker of the House, refutes Barack Obama’s claims about the successes of Obamacare. According to Ryan, Obama claimed, “When you talk to people who actually are enrolled in a new marketplace plan, the vast majority of them like their coverage. The vast majority are satisfied with their choice of doctors and hospitals and satisfied with their monthly premiums. They like their reality.” Ryan stated that, “Cost ‘remains a primary concern’ for ObamaCare enrollees, and more than a third are foregoing treatment because of their sky-high deductibles.”
We would like to hear from you. Is the ACA, Obamacare, and the Government-run exchanges working for you?