Has the passage of Obamacare reduced health insurance premiums?

Investors Business Daily does the math.

Excerpt:

The cost of an average family premium shot up 9.5% in 2011 — the highest rate in seven years and three times the rate of overall inflation, finds a major new survey of employer plans by Kaiser Family Foundation.

Just before Obama signed his health overhaul, he vowed it would “bring down the cost of health care for families, for businesses and for the federal government.” In December, he told CBS’ “60 Minutes” he was “putting in place a system that’s going to lower health care costs.”

In fact, there’s evidence ObamaCare is fanning medical inflation.

Kaiser attributes the premium spike to “changes from the new health reform law.” The 200-page study explains: “Significant percentages of firms made changes in their preventive care benefits and enrolled adult children in their benefits plans in response to provisions in the new health reform law.”

In fact, 31% of covered workers are in a plan where the employer reported adding preventive services to comply with ObamaCare. And some 2.3 million adult children “were enrolled in their parent’s employer-sponsored plan due to the Affordable Care Act,” Kaiser said.

Sen. Ron Johnson, R-Wis., notes that Obama, as a candidate, promised he’d slash family premiums by $2,500 a year by the end of his first term. That was in 2008, when health care coverage cost the average employer and American family $12,680 in annual premiums. Now it’s $15,073, nearly 20% higher. That means Obama has broken his promise by a whopping $4,893.

Costs are projected to simply rise as ObamaCare fully goes into effect. A recent McKinsey & Co. study found that 30% of employers will stop offering benefits after 2014, since “the penalty for not offering coverage is significantly below” the costs of the new mandates. This will make millions more individuals eligible for government subsidies under ObamaCare.

Not everything that Obama says while he is reading from a teleprompter is necessarily true.

One thought on “Has the passage of Obamacare reduced health insurance premiums?”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s