From The Heritage Foundation:
InsiderOnline Blog: September 2011
Obamacare Consultant Finds Obamacare Makes Health Insurance More Expensive
Jonathon Gruber, a health policy expert at the Massachusetts Institute of Technology, helped design the plan that we all know today as Obamacare. The state of Wisconsin recently employed Gruber to produce a report on how Obamacare will affect insurance coverage in the state. Reason’s Peter Suderman summarizes his findings, which are probably surprising only to those who asked Gruber to write the report:
Gruber projects that the average individual market health insurance premium will cost about 30 percent more than if ObamaCare had never passed. For most individual market enrollees, the average premium increase will be even higher: 87 percent of the individual market is projected to see a premium price increase of 41 percent.
Defenders of the law might note that more than half—about 57 percent—of those who get their insurance through the individual market will benefit from the law’s generous health insurance subsidies. But even discounting the enormous public cost of financing those subsidies (which account for roughly half of the law’s $950 billion price tag over the next decade), it’s still not much consolation for the majority of individual market enrollees.
That’s because more than half the individual market will still end up paying more: “After the application of tax subsidies,” the report projects, “59 percent of the individual market will experience an average premium increase of 31 percent.”
One factor in the price increase is the addition of new coverage mandates that will make health insurance more expensive: An estimated 40 percent of the Wisconsin’s current individual market enrollees don’t carry coverage that meets ObamaCare’s minimum coverage standards. Thanks to the law, they’ll be required to purchase more expensive coverage.
Posted on 09/09/11 03:33 PM by Alex Adrianson
Blog Archive
InsiderOnline Blog: September 2011
Obamacare Consultant Finds Obamacare Makes Health Insurance More Expensive
Jonathon Gruber, a health policy expert at the Massachusetts Institute of Technology, helped design the plan that we all know today as Obamacare. The state of Wisconsin recently employed Gruber to produce a report on how Obamacare will affect insurance coverage in the state. Reason’s Peter Suderman summarizes his findings, which are probably surprising only to those who asked Gruber to write the report:
Gruber projects that the average individual market health insurance premium will cost about 30 percent more than if ObamaCare had never passed. For most individual market enrollees, the average premium increase will be even higher: 87 percent of the individual market is projected to see a premium price increase of 41 percent.
Defenders of the law might note that more than half—about 57 percent—of those who get their insurance through the individual market will benefit from the law’s generous health insurance subsidies. But even discounting the enormous public cost of financing those subsidies (which account for roughly half of the law’s $950 billion price tag over the next decade), it’s still not much consolation for the majority of individual market enrollees.
That’s because more than half the individual market will still end up paying more: “After the application of tax subsidies,” the report projects, “59 percent of the individual market will experience an average premium increase of 31 percent.”
One factor in the price increase is the addition of new coverage mandates that will make health insurance more expensive: An estimated 40 percent of the Wisconsin’s current individual market enrollees don’t carry coverage that meets ObamaCare’s minimum coverage standards. Thanks to the law, they’ll be required to purchase more expensive coverage.
Posted on 09/09/11 03:33 PM by Alex Adrianson
Blog Archive
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