Tag Archives: Costs

New study: health insurance premiums will rise 55% to 85% under Obamacare

From National Underwriter. (H/T Don Surber)

Excerpt:

The Patient Protection and Affordable Care Act (PPACA) could cut the number of uninsured Ohio residents by 790,000 in 2017, but it also could increase premiums for the 735,000 residents who have individual coverage by more than 55%.

Consultants at Milliman Inc., Seattle, have included those projections in a forecast report prepared for the Ohio Department of Insurance.

The Ohio department commissioned the report to help regulators know what to expect in 2014, when major PPACA provisions are set to kick in, and a few years further along, in 2017.

PPACA opponents are still fighting in the courts and in Congress to block implementation of PPACA.

If the act takes effect as written and works as drafters expect, PPACA is supposed to require major medical insurers to sell policies that meet minimum benefits requirements on a guaranteed issue, mostly community-rated basis starting in 2014. Individuals and employees at small employers are supposed to be able to buy coverage using tax credits through a new system of health insurance exchanges.

Today, about 10 million non-elderly Ohio residents have some kind of government or commercial health coverage or go uninsured. About 15%, or 1.5 million, were uninsured in 2010, and that percentage could drop to 7.1%, or 712,000, in 2017, the Milliman consultants estimate.

The Milliman consultants suggest that the total number of people covered by insured and self-funded group plans could fall to 5.4 million in 2017, from 6.1 million in 2010.

The number with some kind of individual commercial coverage could increase 735,000, from 350,000.

The percentage with some kind of government coverage, or coverage provided by a private insurer but paid for in whole or in part by the government, could increase to 31%, from 20% in 2010.

Although the percentage of residents with coverage could rise by about 7.9%, the price of individual health insurance coverage might rise about 55% to 85%, excluding the impact of medical inflation, the Milliman consultants predict.

How can this be… it’s named the blah-blah-blah… AFFORDABLE CARE ACT. I swear – if that nutcase in the White House passed a bill banning Christianity, he would call it the Christian Freedom of Religion Act.

Repeal and replace Obamacare.

How many jobs have wind and solar power produced in Spain and Denmark?

The problem with the Obama administration is that they keep making policy based on their intentions, instead of known results. They’ve allocated nearly 39 billion for green energy subsidies – that’s as much money as the entire annual Minnesota state budget. That’s a lot of money being taken away from job creators in the private sector.

So what can we learn about “green energy” from other countries? Is it good value for the money?

Well, we know that in Spain, the green jobs programs failed.

Excerpt:

Subsidizing renewable energy in the U.S. may destroy two jobs for every one created if Spain’s experience with windmills and solar farms is any guide.

For every new position that depends on energy price supports, at least 2.2 jobs in other industries will disappear, according to a study from King Juan Carlos University in Madrid.

U.S. President Barack Obama’s 2010 budget proposal contains about $20 billion in tax incentives for clean-energy programs. In Spain, where wind turbines provided 11 percent of power demand last year, generators earn rates as much as 11 times more for renewable energy compared with burning fossil fuels.

The premiums paid for solar, biomass, wave and wind power – – which are charged to consumers in their bills — translated into a $774,000 cost for each Spanish “green job” created since 2000, said Gabriel Calzada, an economics professor at the university and author of the report.

“The loss of jobs could be greater if you account for the amount of lost industry that moves out of the country due to higher energy prices,” he said in an interview.

The Heritage Foundation cites a study from Denmark, which shows that wind power has also failed.

Excerpt:

But according to a new study from the Danish Centre for Political Studies (CEPOS), commissioned by the Institute for Energy Research, the road to increased wind power is less traveled for a reason. The study refutes the claim that Denmark generates 20 percent of its power from wind stating that its high intermittency not only leads to new challenges to balance the supply and demand of electricity, but also provides less electricity consumption than assumed. The new study says, “wind power has recently (2006) met as little as 5% of Denmark’s annual electricity consumption with an average over the last five years of 9.7%.” Furthermore, the wind energy Denmark exports to its northern neighbors, Sweden and Norway, does little to reduce carbon dioxide emissions because the energy it replaces is carbon neutral.

The study goes on to say that the only reason wind power exists in Denmark is “through substantial subsidies supporting the wind turbine owners. Exactly how the subsidies have been shared between land, wind turbine owners, labor, capital and its shareholders is opaque, but it is fair to assess that no Danish wind industry to speak of would exist if it had to compete on market terms.”

But there’s a cost involved. When government spends more money, it necessarily diverts labor, capital and materials from the private sector. Just like promises are made in the United States about green jobs creation, the heavily subsidized Danish program created 28,400 jobs. But “this does not, however, constitute the net employment effect of the wind mill subsidy. In the long run, creating additional employment in one sector through subsidies will detract labor from other sectors, resulting in no increase in net employment but only in a shift from the non-subsidized sectors to the subsidized sector.”

And because these resources are being diverted away from more productive uses (in terms of value added, the energy technology underperforms compared to industrial average), “Danish GDP is approximately $270 million lower than it would have been if the wind sector work force was employed elsewhere.”

And the libertarian Cato Institute doesn’t think that any renewal energy program will work.

Excerpt:

A multi-billion-dollar government crusade to promote renewable energy for electricity generation, now in its third decade, has resulted in major economic costs and unintended environmental consequences. Even improved new generation renewable capacity is, on average, twice as expensive as new capacity from the most economical fossil-fuel alternative and triple the cost of surplus electricity. Solar power for bulk generation is substantially more uneconomic than the average; biomass, hydroelectric power, and geothermal projects are less uneconomic. Wind power is the closest to the double-triple rule.

The uncompetitiveness of renewable generation explains the emphasis pro-renewable energy lobbyists on both the state and federal levels put on quota requirements, as well as continued or expanded subsidies. Yet every major renewable energy source has drawn criticism from leading environmental groups: hydro for river habitat destruction, wind for avian mortality, solar for desert overdevelopment, biomass for air emissions, and geothermal for depletion and toxic discharges.

Current state and federal efforts to restructure the electricity industry are being politicized to foist a new round of involuntary commitments on ratepayers and taxpayers for politically favored renewables, particularly wind and solar. Yet new government subsidies for favored renewable technologies are likely to create few environmental benefits; increase electricity-generation overcapacity in most regions of the United States; raise electricity rates; and create new “environmental pressures,” given the extra land and materials (compared with those needed for traditional technologies) it would take to significantly increase the capacity of wind and solar generation.

A recession is not the time to be making policies based on what sounds nice. We need to do what works in a recession.

An all-of-the-above, drill-here-drill-now policy would increase supply at a time when demand for oil is growing in India and China. Increasing domestic supply would create jobs and lower energy prices – an excellent thing to do in a recession. But Obama is busy putting in drilling moratoriums and subsidizing green energy, instead. We elected someone who thought that “climate change” was a justification for raising electricity rates would necessarily skyrocket. He is fine with electricity prices skyrocketing. And that’s what we’ve gotten from him.

Indiana voucher program offers hope to low-income students

From the Courier Press, news of the latest success for Republicans in their long war against public sector teacher unions.

Excerpt:

Kristy Wentworth of Evansville said she was never dissatisfied with public education, and her three children, who attended schools in the Evansville Vanderburgh School Corp., were making good grades.

But when friends told her about Indiana’s new private school voucher program, she was intrigued.

After some discussion, Wentworth enrolled her children this year at Evansville Lutheran School, which is near her home. It didn’t take the single mother long to decide her choice was correct. Her children — who are in grades 7, 6 and 4 — are thriving at Evansville Lutheran. Wentworth noted the school’s small class sizes, and she marveled at the frequent communication she receives from her teachers.

“They come home from school excited, they leave for school excited. They can’t wait to get there,” Wentworth said. “(The school) encouraged them to sign up for Boy Scouts and volleyball, and on the first night they made the kids feel so welcome.”

Wentworth recently lost her job, and she said she couldn’t have afforded a private school without the voucher program, which proponents say helps overall educational achievement and closes achievement gaps along socioeconomic lines.

And these private schools help children to perform better in testing.

Can greater competition among schools help? That’s what state education officials are banking on. While scars from the lengthy spring debate over vouchers heal, they are encouraging local school districts to embrace the new environment.

Local nonpublic schools have courted voucher students. As of Friday, 114 were awarded to students in the EVSC district — the fourth highest number in the state.

Officials with the EVSC, meanwhile, point to recent academic progress, its network of community partnerships aimed at meeting students’ most fundamental needs and classroom innovations.

Delaware Elementary School, which is in the same neighborhood as Evansville Lutheran, has made strides in several areas in a short period of time, said Heather Ottilie, parent of a Delaware third-grader.

Delaware is in its second year as an EVSC “equity school.” Along with two other schools of similar socioeconomic demographics — McGary Middle School and Evans School — Delaware is free to have longer school days and longer school years and has more leeway in curriculum and rules. The three equity schools all showed gains on the spring ISTEP.

Ottilie said Delaware has placed heavy emphasis on independent reading. Other innovations include the use of netbook computers and iPod Touches in classrooms, world language instruction and new learning programs such as LEGO robotics, which emphasize problem-solving skills.

“I love it,” Ottilie said. “Everything is hands-on … the kids aren’t just doing worksheets.”

What is the conservative plan to help the poor? Is it wealth redistribution? Does that even work? Or is there a way to produce better results for the poor through free market capitalism? Those who advocate big government never bother to ask these questions. For those who take the time to study economics, the answer is clear – what works to reduce costs and raise quality is choice and competition.

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