Tag Archives: Mandate

Insurance companies are raising their premiums in response to Obamacare

This story is from Investors Business Daily.


We pointed out that several states had already tried these “guaranteed issue” and “community rating” reforms, and they’d been a disaster. Higher premiums encouraged the young and healthy to forgo insurance, knowing that they could sign up after they got sick, which drove premiums still higher.

ObamaCare was supposed to avoid this fate by heavily subsidizing insurance premiums and imposing a tax penalty for going uninsured, to get the young and healthy to sign up and keep premiums down.

But when IBD’s Jed Graham looked at the limited number of filings two weeks ago, he noted that insurers were asking for hikes that averaged 18.6%. And as more rate filings became public, that picture hasn’t changed.

In Virginia, for example, just one plan came in with a proposed rate increase below 10%. Three are above 25%. In Texas, Scott & White wants a 32% boost and Humana 30%. Alliance Health Plans in Georgia says that it needs a 37.85% increase.

The reasons given for these huge increases? The insurance pool is older and sicker than expected.

Blue Cross Blue Shield of Illinois, which enrolled more than 329,000 people in the state, wants a 29% hike, saying, “Actual claims experience of the members … is significantly higher than expected.”

CareFirst in Maryland said that its per-enrollee claims shot up 49% in the first year of ObamaCare. WPS Health Plan also cited “the impact of numerous additional taxes and fees imposed upon our plan” as part of the reason why it wants a 19% boost.

It sounds so nice to feelings-oriented voters to cover all kinds of things that some people like, like birth control and sex changes. It sounds so nice to feelings-oriented voters to not turn people away with pre-existing conditions. It sounds to nice to feelings-oriented voters for every plan to cover maternity care – even for people who don’t use it, e.g. – men. But the simple fact of the matter is that when you force insurers to include more coverages and extend coverage to more people, then there will be more claims, and the next rounds of premiums must rise to cover the increased number of claims. That’s how insurance works. Although I doubt the average feelings-oriented Democrat understands that.


What’s more, these big increases are coming before ObamaCare’s temporary industry bailout programs go away. They were specifically designed to protect insurers from big losses, allowing them to keep premiums lower than they might have otherwise.

The cost of claims is going higher. The subsidies to cover the higher claims disappear. The private insurance companies cannot pay the higher claims. The private insurance companies close. The government takes over the health care industry. Taxes go up, to pay for a bloated and wasteful government-run health care system. Patients are forced to wait longer for care, even after paying into the single payer system their whole lives. Conscience protections disappear. More and more unethical behaviors that require health care get covered by the single payer system, encouraging patients to be less responsible since health care is “free”. Tax rates go higher to cover skyrocketing costs of “free” health care. Government decides to cut costs by implementing coerced abortion and euthanasia.

All we have to do is look to Europe and Canada to see how it works. This is how the socialist game plan plays out.

Video: Obamacare architect admits deceiving the public was needed to get it passed

CNS News reports.


A key architect of Obamacare has been caught openly boasting about taking advantage of, what he calls, “the stupidity of the American voter.”

MIT economics professor Jonathan Gruber spoke at a panel on October 17 on the political hurdles Obamacare faced in 2009-10. The video was unearthed and posted on Youtube by American Commitment.

Gruber was instrumental in crafting the legislation that was signed into law in March 2010.

In the midst of his explanation, Gruber bragged about the multiple deceptions the Obama White House perpetrated on the American people:

“This bill was written in a tortured way to make sure CBO did not score the mandate as taxes. If CBO scored the mandate as taxes, the bill dies. So it was written to do that. In terms of risk related subsidies, if you had a law which made explicit that healthy people pay in and sick people get money it would not have passed. Lack of transparency is a huge political advantage. And basically, call it the stupidity of the American voter or whatever, but basically that was really, really critical to get the thing to pass.”

This is a jaw dropping disclosure of the political lengths those in the Obama Administration were willing to go to avoid the hard truths about their signature legislative achievement.

This story is in the news, but this isn’t the first time I’ve blogged about Gruber.

Last November, I wrote about an interview with Jonathan Gruber.

Gruber said this:

“We currently have a highly discriminatory system where if you’re sick, if you’ve been sick, if you are going to get sick, you cannot get health insurance,” Gruber told host Chuck Todd. “The only way to end that discriminatory system is to bring everyone into the system and pay one fair price. That means that the genetic winners, the lottery winners, who’ve been paying their artificially low price because of this discrimination, now will have to pay more in return. And that, by my estimate is about 4 million people. In return, we’ll have a fixed system where over 30 million people will now, for the first time, be able to access fairly priced and guaranteed health insurance.”

So if I’m a man who chooses not to use drugs, I am a genetic winner, and I need to pay more to cover the substance abuse treatment coverage for those genetic losers who do choose to use drugs. If I’m a man, who doesn’t want to be a woman, I have to pay more in insurance to cover the sex-change surgery of men who do want to be women. If I’m a man who marries and has kids, I have to pay for the IVF of the career feminists who never marry and wait until they are 40 and want suddenly want IVF. And so on.

So according to Gruber, this law was about redistributing wealth from the beginning.

Imagine Obamacare applied to auto insurance. It would be like paying more for your auto insurance on a low-risk SUV to cover people who drive expensive motorcycles, which are more risky. You aren’t subject to high risk, but your must pay for those who are. That was the whole point of the law. And eventually, more mandatory coverages will be added for politically correct treatments like IVF, breast enlargements and sex changes, as is done in other socialized health care systems in the UK (breast enlargements, IVF) and some provinces in Canada (sex changes).

Think about that when the insurance premiums for Obamacare exchange plans finally get published and the premium are much higher. They. Knew.

UPDATE: The Daily Caller reports that University of Pennsylvania has now pulled the video but the one I linked to above is still live.

250,000 Virginians to lose their health care coverage due to Obamacare

From the Weekly Standard.


“Nearly a quarter million Virginians will have their current insurance plans cut this fall,” said the local anchor. “That is because many of them did not–are not following new Affordable Care Act rules, so a chunk of the companies that offer those individuals their policies will make the individuals choose new policies.”

Says the reporter, “This goes back to that now heavily-criticized line we heared before Obamacare was put in place: ‘If you like your plan, you can keep it.’ Ultimately, that turned out not to be true for thousands of Virginians and companies in the commonwealth. … Wednesday Virginia lawmakers on the health insurance reform commission met for the first time this year. Turns out, a staggering number of Virginians will need new plans this fall.”

A Virginia health official says, “Cancellation is a word that’s used all the time…but really what’s happened is the law has changed. We’re not allowed to offer those plans anymore. So what we’re saying to them is, you need to move to one that’s compliant with the law because that’s what we can offer.”

Not everyone is going to see the full effects of Obamacare before the midterm elections, but these Virginians are seeing it. The Obama administation delayed the employer mandate until after the midterm elections, along with Obama’s execute order amnesty. I hope that Americans are paying attention this time.

Six bad arguments against religious liberty from the SCOTUS Hobby Lobby hearing

From the Federalist. (H/T Jay Richards)

Here are the 6 arguments:

  1. A Government Surtax On Religious Exercise Is Totally Acceptable
  2. The Mandate Isn’t Really A Mandate
  3. This Is Just A Sneaky Way To Undo The Civil Rights Act
  4. Corporations Can Have A Racial Identity, Just Not A Religious One
  5. Don’t Start A Business If You Want The Government To Respect Your Religious Rights
  6. Abortifacients Aren’t Really Abortifacients

I want to highlight two of these.

First, number 1 makes clear that the Obama administration thinks that you should have to pay a tax in order to follow your conscience. Obama explained that very well in his campaign speeches. If you have a business, you didn’t build that. The government made that happen, and so they have a right to tell you how to run your business.

Here’s #1:

During her questioning of Hobby Lobby’s lead attorney, Justice Sonia Sotomayor appeared to endorse the concept of a religion surtax. Sotomayor’s rationale was that rather than providing health coverage that included abortifacient coverage, companies could refuse outright to provide any health insurance at all, thereby getting around the mandate.

But isn’t there another choice nobody talks about, which is paying the tax, which is a lot less than a penalty and a lot less than — than the cost of health insurance at all? These employers could choose not to give health insurance and pay not that high a penalty ­­– not that high a tax.

Given that the American Revolution started in large part due to a tax on stamps, it seems odd that the Founders would have agreed that citizens should be forced to pay a tax for the privilege of not doing things that might lead to the eternal damnation of their souls. At any rate, Chief Justice John Roberts interjected, and noted that Hobby Lobby’s owners believed they had a religious duty to provide health coverage to their employees. As a result, they would be forced to violate their beliefs no matter what: providing abortifacient coverage would be a violation, as would a failure to provide any health insurance coverage at all.

Number 4 is also interesting. The Democrats basically argued that although companies can be regarded by the law as Black-owned or Hispanic-owned, they cannot be regarded as Christian-owned. A Black-owned company can complain about racial discrimination, but a Christian-owned company can’t complain about religious discrimination. So corporations can have a race, but not a religion.

Here’s #4:

Corporations are people, my friend, just as long as they’re not religious people. That’s the essence of one argument offered by Verrilli. A major issue in the case is whether a for-profit company or corporation even has standing to sue under RFRA, or whether that right is granted only to individuals or non-profits. The Obama administration has argued that for-profit companies do not have standing. That argument led Roberts to ask the following:

CHIEF JUSTICE ROBERTS: Well, that’s a question of State corporate law. It’s not a question of who can bring an action under RFRA.

Could I just raise — eight courts of appeals, every court of appeal to have looked at the situation have held that Corporations can bring racial discrimination claims as corporations.

Now, does the government have a position on whether corporations have a race?

GENERAL VERRILLI: Yes. We think those are correct and that this situation is different.

CHIEF JUSTICE ROBERTS: So that — so that a corporation does have a race for purposes of discrimination laws.

“So the person — the corporation can bring as a person a claim of racial discrimination[?]” Roberts asked.

“That’s correct, but not exercise of religion,” Verrilli replied.

My opinion of this Hobby Lobby case is that the government’s real aim is to force Christian churches, groups and businesses to offer abortion as another service in a health insurance plan. They have no respect for religious liberty or conscience. They just want to make sure that no Christian can judge because we would all be complicit in the mass murder of millions of unborn children. There would be no one on the outside who could claim to stand in judgment over the pro-abortion people. That’s why it’s so important to make evil taxpayer-funded. That normalizes it and removes the stigma from the people who take advantage of it. “The whole society paid for this, so I don’t need to feel guilty about it – it’s normal”.

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Obama administration report: 65% of small firms face Obamacare premium hikes

From Investors Business Daily.


Released into a news black hole last Friday, an official Obama administration report finds that ObamaCare will push premiums up for two-thirds of small businesses. Cross off another ObamaCare promise.

The report came from the actuary for the Centers for Medicare and Medicaid Services — which means it’s from the administration’s official ObamaCare number cruncher.

What it found was that 65% of small businesses that offer insurance will likely see their premiums rise thanks to ObamaCare. That translates into higher insurance costs for 11 million workers.

The reason? These companies generally employ younger, healthier workers and so had been paying lower-than-average rates.

But since ObamaCare bans insurance companies from considering health when setting premiums, these companies will get hit with higher costs.

“We are estimating that 65% of small firms are expected to experience increases in their premium rates,” the report said, “while the remaining 35% are anticipated to have rate reductions.”

The report doesn’t say how big these hikes will be, but we have good reason to believe the extra costs will be significant.

One study, for example, found that 63% of small employers in Wisconsin will see premiums jump 15% because of ObamaCare. A separate study found that 89% of small companies in Maine would see rate hikes of 12% on average.

Another, by consulting firm Oliver Wyman, concluded that ObamaCare would push up small group premiums nationwide 20%.

Is this how the bill was sold to us by the Obama administration and their supporters in the mainstream media?


In 2009, Obama promised small businesses that his plan would “make the coverage that you’re currently providing more affordable.” Later he said it would drive small-business premiums down by 4% in its first year, and as much as 25% by 2016.

As recently as last summer, Pelosi was proclaiming that “if you’re a small business … it lowers costs,” while Waxman said the law would make “high-quality healthy insurance more affordable and more widely available for small businesses.”

Notice that nowhere — either before or after ObamaCare passed — did any Democrat say anything about two-thirds of small businesses paying more for health coverage so the lucky one-third could get rate cuts.

Next time you hear a big government liberal promising you goodies at no cost, keep in mind their record. They are making policy from emotions, not from mathematics. They believe that they are lying to you for your own good. Their goal is not to tell the truth at all. And don’t rely on the left-wing journalism crowd to hold them accountable, they flunked math too.