Tag Archives: Health-care

Analysis: how much did each Obamacare mandate drive up health insurance premiums?

How each Obamacare mandate affected the health insurance premiums
How each Obamacare mandate affected the health insurance premiums

Since 2010, we were inundated with reports and studies from various groups that argued that the new mandates in Obamacare would drive up the cost of health insurance. And that was actually observed to happen. Year after year, health insurance costs rose – usually by double digits. We knew why this was happening, too: Obamacare required health insurers to cover more conditions, many of them not even related to health insurance.

Here is an an analysis of which mandates caused health insurance costs to rise the most from the Daily Signal.

Excerpt:

Obamacare caused premiums to rise for various reasons, chief among them being the vast new regulations the law imposed on insurance markets. A new analysis from Milliman backs this up. The study provided estimates of the average impact that various Obamacare regulations had on premiums.

[…]Changes in morbidity (or the sickness of the population) due to newly uninsured by itself caused 4 percent increases in premiums nationally, but in Ohio it raised premiums by 35-40 percent.

Age is also a factor in premium prices, and Obamacare disrupted the natural order by dictating the age banding, which disproportionately harmed young people. (Age banding here refers to how much the most expensive plans can be in comparison to the cheapest.)

Before Obamacare, the national rate of age banding was 1-to-5. In other words, the most expensive plan was five times more costly than the cheapest plan, with expense increasing with age.

Obamacare mandated that the rate be set at 1-to-3, so that the most expensive plan could be no more than three times as expensive. While elderly people’s premiums might have seen fewer increases—which is both due to banding and the fact that Obamacare is close to a death spiral—young people have suffered.

Overall, young people can expect to have rate increases between 58.9 percent and 91.8 percent using national averages. However, not every state had a 1-to-5 age band.

In places like Ohio, the effects are far worse—it had a 1-to-6 age band. Even accounting for the differences in its population from the national average, young people in Ohio can still expect to pay an average of 7.7 percent more on top of other increases.

In addition to this “youth tax,” mandates like the “essential health benefits” and actuarial requirements further punish all Americans with benefits that they don’t need, at prices they can’t afford. While in places like Maryland these mandates might only contribute 8 to 10 percent to premium increases, nationally they raise premiums by an average of 16.5 percent, up to 32 percent.

Overall, accounting for gender, age, and the relative proportions of all those groups, Americans are paying 44.5 to 68 percent more in premiums owing just to Title I regulations. That number is even higher when factoring all the other adverse effects of Obamacare.

Notice that “guaranteed issue”, which is so popular with those who feel that they can somehow be generous by spending other people’s money, is one of the biggest drivers of health insurance costs. When pollsters ask people whether they want to keep these provisions, they mostly say yes. But when the pollsters ask whether they want to keep these provisions if it means that their own health insurance costs will go up, they mostly say no. It’s amazing how American voters, especially Democrats, love the idea of spending other people’s money. As long as they don’t have to pay for it, then it’s a great idea to spend someone else’s money in order to buy the feeling (and the peer approval) of being generous and compassionate.

And after 8 years of Obama offering that feeling to his supporters, we now have a national debt of $20 trillion, instead of $10 trillion. Mind you, in decades of asking my co-workers, I’ve never yet met one Democrat who could tell me what the national debt was. I guess that would interrupt their feelings of generosity and compassion.

 

 

Conservative legislators introduce new consumer-focused replacement for Obamacare

Obamacare premium growth, 2015-2016
Obamacare insurers are dropping out, which raises premiums higher, 2015-2016

I have your Thursday good news ready to go – from the Daily Signal.

This is how you reform health care:

Sen. Rand Paul, R-Ky., and Rep. Mark Sanford, R-S.C., introduced a bill to replace Obamacare on Wednesday, increasing the pressure on GOP leaders who continue to discuss moving the law’s replacement at the same time as its repeal.

The legislation already has the full support of the House Freedom Caucus, a group of roughly 40 of the lower chamber’s conservative members. Conservatives in both the House and Senate have said they want to see repeal efforts move faster, and the lawmakers are hoping that the legislation is a turning point in the repeal-and-replace debate.

“We’re excited about the fact that it will finally be able to address many of the concerns that we’re hearing, whether it’s at town halls or personal calls from our constituents about pre-existing conditions, about how to empower the consumer in terms of their health care choice, and ultimately drive down the price of health care,” House Freedom Caucus Chairman Mark Meadows, R-N.C., said Wednesday.

Called the Obamacare Replacement Act, the legislation shares the hallmarks of other GOP replacement plans, and Paul said it was a “consensus bill” that pulled aspects of other proposals together.

[…]Paul and Sanford’s bill focuses heavily on the expansion of health savings accounts (HSAs), which are medical savings accounts. Their legislation allows consumers to contribute an unlimited amount annually to HSAs. Currently, consumers can contribute a maximum of $3,400 per year.

The Obamacare Replacement Act also creates a $5,000 tax credit for those who contribute to a HSA, and prohibits consumers from using the money in their accounts to pay for elective abortions.

Under Paul and Sanford’s bill, consumers who don’t receive insurance through their employers can deduct the cost of premiums from their taxable incomes, which serves to equalize the tax treatment for individuals and employers.

Additionally, the legislation allows individuals and small businesses to band together through membership in an Association Health Plan to buy health insurance. Paul and Sanford said these pooling mechanisms will decrease costs for consumers.

The bill also allows insurance companies to sell policies across state lines and eliminates Obamacare’s essential health benefits mandate, which is a list of services insurance plans are required to cover without cost-sharing.

If you want to drive down the cost of health care, you let people get covered for only what they need – no abortions, sex changes, IVF, acupuncture, drug rehabilitation, breast enlargements, fertility treatments, etc. Allowing people to buy plans across state lines will mean that consumers in blue states like California and Massachusetts won’t be forced to buy in-state plans that cover all kinds of progressive garbage that they don’t even want.

Look how Obamacare is falling apart:

At the Future of Healthcare event put on by the Wall Street Journal, Aetna CEO Mark Bertolini said that Obamacare was only “getting worse” because there weren’t enough young, healthy enrollees to pay for the sick people covered by the Obamacare exchanges. Bertolini said it was due to “how poorly structured the funding mechanism and premium model is,” as premiums keep increasing with the death spiral, causing less people to sign up, and thus resulting in even higher premiums.

“I think you will see a lot more withdrawals this year of plans,” Bertolini said.

On Wednesday, Humana–which came to a mutual agreement with Aetna not to merge–announcedthat it was withdrawing from Obamacare altogether. In 2016, UnitedHealth also announced that they would be pulling out of the Obamacare exchanges, and Aetna itself said they would only stay in four Obamacare exchanges.

Bertolini stated at the event that the company has not decided if it will remain in these Obamacare exchanges.

“There isn’t any risk sharing going on in Nebraska,” Bertolini said, pointing to the fact that Aetna was the only insurer left in that exchange. “It will cost us a lot of money.”

Now is the time to replace it!

The problem with Obamacare is that it didn’t do anything to leverage the strengths of the free enterprise system. Instead of turning health care purchasing into competitive online e-commerce (i.e. – Amazon), they turned it into the DMV and the post office. What else would you expect from clowns who were born rich, and never held private sector jobs in their entire lives? You don’t expect the people who run the single-payer VA health system that is killing people on waiting lists to do a good job of reforming health care, do you? Let the free market solve it. Choice and competition means lower prices.

Watch Ted Cruz debate Bernie Sanders on health care policy and repealing Obamacare

This debate happened on CNN earlier in the week. Thankfully, I was out traveling, so I actually had a TV to watch this in my hotel room.

Here is the full video:

It’s 90 minutes long. No commercials. This was basically a debate of similar substance to the William Lane Craig debates, where actual economic evidence was continuously produced in order to show who was telling the truth, and who was just trying to be popular by saying what people who are uneducated at economics want to hear. In short: there was a clear winner and loser in this debate, and it was clear all the way through, and was reinforced over and over every time evidence was produced. The person producing the evidence would turn his back on the camera, and return to his podium to get the evidence. That person won the debate by being grounded in reality.

Also, the questions were excellent, especially from the small business owners who were impacted by Obamacare. The moderators were biased towards Sanders, but not excessively.

For those who cannot watch, there is an article at the Daily Signal.

Full text:

In a prime-time debate on CNN this week, Sens. Bernie Sanders, I-Vt., and Ted Cruz, R-Texas, discussed “The Future of Obamacare” in America. Cruz, a leading critic of the law, used the moment to outline the law’s failures.

Here are four things Cruz said about Obamacare:

1) “Now, nobody thinks we’re done once Obamacare is repealed. Once Obamacare is repealed, we need commonsense reform that increases competition, that empowers patients, that gives you more choices, that puts you in charge of your health care, rather than empowering government bureaucrats to get in the way. And these have been commonsense ideas.”

2) “Indeed, I don’t know if the cameras can see this, but in 70 percent of the counties in America, on Obamacare exchanges, you have a choice of one or two health insurance plans, that’s it … It’s interesting. You look at this map, this also very much looks like the electoral map that elected Donald Trump. It’s really quite striking that the communities that have been hammered by this disaster of a law said enough already.”

During one of the more powerful moments in the debate, Cruz held up aHeritage Foundation chart showing viewers how many counties in the U.S. have access to only one or two insurers under Obamacare. Additionally, only 11 percent of counties have access to four or more insurance providers.

3) “Whenever you put government in charge of health care, what it means is they ration. They decide you get care and you don’t. I don’t think the government has any business telling you you’re not entitled to receive health care.”

The U.S. should not envy other health care systems, especially Canada and the United Kingdom, Cruz said. He referred to a governor from Canada who came to the U.S. specifically to have heart surgery.

4) “That’s why I think the answer is not more of Obamacare, more government control, more of what got us in this mess. Rather, the answer is empower you. Give you choices. Lower prices. Lower premiums. Lower deductibles. Empower you and put you back in charge of your health care.”

Obamacare is burdening Americans. The average deductible for a family on a bronze plan is $12,393, according to a HealthPocket analysis. According to aneHealth report, the average nationwide premium increase for individuals is 99 percent and 140 percent for families from 2013-2017.

I really recommend you watch this debate, because it these things were done on a weekly or monthly basis, then people would be able to think critically about what they are presented with from the mainstream media, Hollywood elites and liberal academics.

Does Planned Parenthood provide prenatal care and mammograms to women?

How many abortions does Planned Parenthood perform?
How many abortions does Planned Parenthood perform?

(Source)

A new video put out by Live Action takes a look at the claim that Democrats make that Planned Parenthood provides prenatal care to pregnant women.

But that’s not all – what about the claim made by Democrats that Planned Parenthood provides mammograms to women?

Life Site News explains the myth and the reality.

Excerpt:

The day before hundreds of pro-life activists prepared to flood Planned Parenthood’s offices with requests to schedule a mammogram, the organization issued a statement admitting that they do not offer the cancer screening procedure at any of their facilities.

The calls were placed today as part of “Call Planned Parenthood to Schedule Your Imaginary Mammogram Day” – an event organized by pro-life activists in response to President Obama’s statement during the presidential debate Tuesday that the abortion organization offers mammograms.

“There are millions of women all across the country, who rely on Planned Parenthood for, not just contraceptive care, they rely on it for mammograms, for cervical cancer screenings,” the president had said, repeating a claim he had made earlier this summer in an interview with Glamour magazine.

But Obama isn’t the only one.

The notion that Planned Parenthood offers mammograms is one of the most enduring myths about the abortion giant. The claim is regularly trotted out by pro-abortion politicians eager to defend taxpayer funding for Planned Parenthood, but wary of invoking its controversial status as the country’s leading provider of abortions.

Not only does Planned Parenthood not provide mammograms, but the abortions they perform have been linked to the epidemic of breast cancer that is afflicting women today.

What about the claim that only 3% of what Planned Parenthood does is doing abortions?

False:

Practically every defender of the organization, fighting to preserve its federal funding, reverts to the 3 percent figure. How could you possibly, they ask, defund a group that devotes itself overwhelmingly to uncontroversial procedures and services for women?

[…]The 3 percent factoid is crafted to obscure the reality of Planned Parenthood’s business. The group performs about 330,000 abortions a year, or roughly 30 percent of all the abortions in the country. By its own accounting in its 2013–2014 annual report, it provides about as many abortions as Pap tests (380,000). The group does more breast exams and provides more breast-care services (490,000), but not by that much.

The 3 percent figure is derived by counting abortion as just another service like much less consequential services. So abortion is considered a service no different than a pregnancy test (1.1 million), even though a box with two pregnancy tests can be procured from the local drugstore for less than $10.

By Planned Parenthood’s math, a woman who gets an abortion but also a pregnancy test, an STD test, and some contraceptives has received four services, and only 25 percent of them are abortion. This is a little like performing an abortion and giving a woman an aspirin, and saying only half of what you do is abortion.

Such cracked reasoning could be used to obscure the purpose of any organization. The sponsors of the New York City Marathon could count each small cup of water they hand out (some 2 million cups, compared with 45,000 runners) and say they are mainly in the hydration business. Or Major League Baseball teams could say that they sell about 20 million hot dogs and play 2,430 games in a season, so baseball is only .012 percent of what they do.

Supporters of Planned Parenthood want to use its health services as leverage to preserve its abortions, as if you can’t get one without the other. Of course, this is nonsense. The Centers for Disease Control and Prevention provides free or low-cost breast- and cervical-cancer screenings — without aborting babies. State health departments provide free cancer screenings — without aborting babies. Community health centers provide a range of medical services — without aborting babies.

I think it’s a good idea to be able to respond to Planned Parenthood’s rhetoric. These are the people who kill babies, and we have to be able to respond to their false claims. When a majority of people learn the truth about the baby killing business, it will stop.

Trump signs executive order giving Americans relief from Obamacare fees and taxes

Health insurance costs rose dramatically under Obama
Health insurance costs rose dramatically under Obama (click for larger image)

The Washington Free Beacon reports.

Excerpt:

On his first day in office, President Trump signed an executive order that would relieve the economic burden that Obamacare has caused, fulfilling a promise he made on the campaign trail.

[…]Trump promised Americans that on day one of taking office, he would ask Congress to immediately deliver a full repeal of the Affordable Care Act.

“Since March of 2010, the American people have had to suffer under the incredible economic burden of the Affordable Care Act—Obamacare,” Trump said. “As it appears Obamacare is certain to collapse of its own weight, the damage done by the Democrats and President Obama, and abetted by the Supreme Court, will be difficult to repair unless the next president and a Republican congress lead the effort to bring much-needed free market reforms to the healthcare industry.”

“It is not enough to simply repeal this terrible legislation,” Trump said. “We will work with Congress to make sure we have a series of reforms ready for implementation that follow free market principles and that will restore economic freedom and certainty to everyone in this country.”

Since Trump’s economic policy draws on the experts at the conservative Heritage Foundation, we can expect that the alternative to Obamacare will be one based on a system that is proven to be successful. Switzerland has a health care system that has universal coverage, yet is fully privatized. It costs little, and delivers a lot of health care. Their system works, unlike socialist health care systems in the UK and Canada – which Obama was trying to emulate.

House Republicans say:

“Our goal is a truly patient-centered system, which means more options to choose from, lower costs, and greater control over your coverage,” said Speaker of the House Paul Ryan (R., Wis.). “And as we work to get there, we will make sure there is a stable transition period so that people don’t have the rug pulled out from under them.”

The nominee to lead the Department of Health and Human Services Rep. Tom Price (R., Ga.) echoed that sentiment, saying at his confirmation hearing that it is imperative that individuals have health coverage and have greater choices and opportunities to get the coverage they need.

“I think there’s been a lot of talk about individuals losing health care coverage—that is not our goal, nor is it our desire, nor is it our plan,” Price said.

The Daily Signal has more details on the relief provided to poor Americans in his executive order. It directs Trump’s subordinates to:

[…]exercise all authority and discretion available to them to waive, defer, grant exemptions from, or delay the implementation of any provision or requirement of the Act that would impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products, or medications.

The Daily Signal also comments:

As to the substance, the new president’s clear directive is for his appointees to focus on minimizing the damaging effects of the law. That constitutes a sharp change in direction from the one taken by the Obama administration.

The implementation approach taken by the Obama administration was essentially to try to increase subsidized enrollment heedless of any resulting costs or disruptions to either the public or private sectors. This executive order signals that the Trump administration’s first order of business for Obamacare will instead be to minimize those costs and disruptions.

Some numbers from CNBC:

For many Obamacare customers this year, they’ll be paying more for less.

A new report on Obamacare plans details how plan premiums, deductibles and other out-of-pocket insurance costs have grown sharply even as the size of networks of health providers covered by those plans are shrinking in 2017.

The report from the Avalere consultancy also details how the number of insurers selling Obamacare plans have also shrunk, decreasing competition in the individual health plan market.

Last year, just 4 percent of all regions of the United States had only one participating insurer on Obamacare exchange, according to Avalere’s analysis. This year, 36 percent of all regions in the U.S. will have only one participating health insurer on an Obamacare exchanges.

Avalere’s report also found that in 2017, just 31 percent of all exchange-sold plans are “preferred provider organizations” or “point of service” plans, down from 52 percent of all plans in 2014, the first year of Obamacare coverage

PPOs generally have a wider networks of doctors and hospitals covered by the plan, and cover more out-of-network services than do other types of plans, including health maintenance organizations.

I have a friend who is a Democrat. For every month of the last 6 years, I have been presenting him with the numbers on Obamacare showing the negative impact on small businesses and poor Americans. He makes 6 figures as a software engineer, and knows literally nothing about economics. I have even told him stories about some of my friends who are poorer who struggled with the financial burdens caused by the law. His response was stunning: “what does this matter to you, you have health care through your employer”. That’s how Democrats think. As long as they are OK, who cares about the poor. The important thing for them is that government run everything and make all the decisions, because ordinary people cannot be trusted with freedom.

You can read more about the disaster of Obamacare here in a report by the Heritage Foundation.