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What Will Obamacare Cost?

Home - by - November 28, 2012 - 11:00 America/New_York - 11 Comments

Forbes-

To take an example, in Virginia CareFirst BlueCross charges $1978 per month for guaranteed issue coverage (with variations depending on the deductible the customer selects). An equivalent plan without guaranteed issue costs $333 per month. That’s a difference of $1645 per month, or almost $20,000 per year more. As it stands now, people with pre-existing conditions might find it worthwhile to pay that much, but others can get coverage at a much lower rate. But for 2014 and onwards, only the more expensive coverage will be available. This means that healthy families buying coverage on their own could see premium increases of $20,000 – a far cry from the decrease of $2500 promised by candidate Obama in 2008.

Of course, it is possible in theory that with more people, including healthy people, enrolling in guaranteed-issue insurance, the average health of the insurance pool would improve, and the premium increase could be lower than the full $20,000. But it is not likely to be much lower. Consider the decision from the point of view of a healthy customer with no pre-existing conditions. Would they rather pay an extra $20,000 for insurance, or pay a penalty of a few hundred dollars for not having “qualified” insurance? Especially if they know that if they ever develop a serious health problem, they can always get insurance at the same rate guaranteed issue rate that they would pay without it. (Even if they have to wait until the next calendar year to begin coverage, most people would have saved more than enough in the years before to pay out-of-pocket until the following year and still come out ahead.)

In other words, the same ban on on surcharges and exclusions for pre-existing conditions that makes it easier for those with pre-existing conditions to obtain coverage simultaneously makes going without insurance much more attractive for those without pre-existing conditions.

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ht/ C. Steven Tucker
@CSteven

» 11 Comments

  1. Unruly Refugee

    November 28th, 2012

    It will cost many lives.

    Thumb up +4

     
  2. Menderman

    November 28th, 2012

    “insurance companies might not have enough money to pay claims in the new environment.”

    ^^^and the plan is working wonderfully

    Thumb up +4

     
  3. Left Coast Dan

    November 28th, 2012

    I don’t think I’m doing more than stating the obvious, but 0bamacare is designed to eliminate all private insurers.

    Thumb up +8

     
  4. Unruly Refugee

    November 28th, 2012

    Total Control, Total Control

    Thumb up +6

     
  5. Edith McCrotch

    November 28th, 2012

    Make it so expensive that people will beg for a government owned universal insurance for all.

    Thumb up +4

     
  6. Diann

    November 28th, 2012

    I have a preexisting condition. It’s called Chronic Conservatism. Currently I have it under control. It tends to flare up and risk my life, liberty and pursuit of happiness anytime the government tries to force me to purchase anything against my will. Is there a plan under Obamacare for me?

    Thumb up +6

     
  7. Xavier

    November 28th, 2012

    Indeed there is, Diann. Indeed there is.

    Thumb up +2

     
  8. Stranded in Sonoma

    November 28th, 2012

    @Diann — Death Panels IPAB

    Thumb up +3

     
  9. norman einstein

    November 28th, 2012

    Ask the UK how well it’s working out.
    Here’s a graph showing the ever-increasing CBO cost estimates:

    http://tinyurl.com/d9szomb

    Obamascare will be the “straw that breaks the camel’s back” of the US economy, and that’s precisely what it was DESIGNED to do.

    Thumb up +9

     
  10. Stranded in Sonoma

    November 28th, 2012

    …or pay a penalty of a few hundred dollars for not having “qualified” insurance…

    No, damn it! It is NOT a penalty. How many times must we go over this? Stop letting the liberals set the narrative! IT IS A TAX!

    And just like the Social Security tax being “constitutiional” in 1937, the ObamaTax will certainly lead to massive unemployment.

    Thumb up +5

     
  11. Dadof3

    November 28th, 2012

    If I could afford over $24,000.00 a year in insurance I can afford to pay my Dr. bills without it. AND buy a reasonable new car every year or take great vacations or help my family, neighbors, etc.

    Just gimme catastrophy coverage and we’re good to go.

    Thumb up +3