Oops, another Obamacare myth gets thrown out the window. We were promised by the President and his Democratic Party lemmings, a government takeover of health care would lower our insurance premiums. Not so fast says the “non partisan” Congressional Budget Office.
“CBO and JCT estimate that the average premium per person covered (including dependents) for new nongroup policies would be about 10 percent to 13 percent higher in 2016 than the average premium for nongroup coverage in that same year under current law. About half of those enrollees would receive government subsidies that would reduce their costs well below the premiums that would be charged for such policies under current law,” the report says.
In other words, all of this new bureaucracy will cause premiums to rise and for some of those with higher premiums the government will step in and give them money to offset the higher costs.
Though Republicans will seize on the projections that insurance premiums for individuals would increase, Democrats will highlight the conclusion that the legislation would lower premiums by 56 to 59 percent for those individuals who would receive subsidies to buy insurance on the exchange created by the legislation. Of those who participate in the exchange, 57 percent would be eligible for subsidies. The subsidy would cover about two-thirds of their premiums, the report says.
But wait. Wouldn’t it be cheaper NOT to raise insurance premiums with Obamcare and just give those same people a subsidy based on the lower rates?
The report also provides projections for the actual average price of insurance purchased on the exchange. “Average premiums per policy in the nongroup market in 2016 would be roughly $5,800 for single policies and $15,200 for family policies under the proposal, compared with roughly $5,500 for single policies and $13,100 for family policies under current law,” the agencies say.
…The analysis does not measure the effects on premiums of a proposed excise tax on the most expensive insurance plans. Consistent with their previous reports, the CBO and the JCT predict that most people who currently have so-called Cadillac insurance plans would opt for less expensive insurance to avoid the tax.
It also doesn’t analyze the oppressive new taxes in both the senate and house versions of the plan.
Individuals will not be the only ones hit by higher costs under Obamacare. Two weeks ago, Richard Foster, the chief actuary at the Centers for Medicare and Medicaid, a division of the Department of the Health and Human Services released a study predicting overall government spending on health care would rise by a total of $298 billion dollars over the next decade as a result of the House health care bill. Additionally billions of dollars in projected savings contained in the measure will be difficult to maintain.
Obamacare will not cut costs, nor will it improve medical treatment, that leaves just one reason for the bill, increasing government power and raising taxes, and that is no Lie.