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Obamacare: ‘Train Wreck’ In Ohio

Posted by Larry Doyle on June 11, 2013 1:12 PM |

Your healthcare premiums were going to go down under Obamacare, right? Not so fast.

The benefits will far outweigh the costs, correct? Well, let’s navigate to America’s heartland and pose that question to the citizens of Ohio who will be picking up the tab. Might some — perhaps many — individuals who delivered the state for the President care to reconsider?

Recent news emanating from the Buckeye state would seem to indicate that when it comes to healthcare, the only thing that will be declining are the savings accounts of a lot of individuals.

If evidence from Ohio is indicative of what is likely to transpire throughout the nation, then the Obamacare ‘train wreck’ (the words of Senator Max Baucus, D-Mont) will be unrivaled in terms of Uncle Sam’s facilitation of many individuals getting fleeced like never before. Am I overreacting?

Are you sitting down?

Avik Roy of Forbes holds nothing back in exposing and excoriating the administration and supporters as he writes, Obamacare To Increase Individual-Market Health Premiums by 88%:

Democrats continue to try to dismiss the evidence that Obamacare will dramatically increase the cost of insurance for people who buy it on their own. But on Thursday, the Ohio Department of Insurance announced that, based on the rates submitted by insurers to date, the average individual-market health insurance premium represents an increase of 88 percent relative to 2013.

“We have warned of these increases,” said Lt. Gov. Mary Taylor in a statement. “Consumers will have fewer choices and pay much higher premiums for their health insurance starting in 2014.”

It’s called “rate shock,” . . .

Is that what it is called? I can think of a whole host of other phrases to define this “tax” being imposed upon those who purchase individual health care policies. One widely followed commentator defined it as “insurance rate rape.”

Some people have the impression that the main reason that rates are going up under Obamacare is because of the law’s requirement that insurers cover people with pre-existing conditions. But that accounts for only a fraction—around a quarter—of the rate hike.

The rest comes from all the other things that Obamacare does, such as forcing people to buy richer insurance benefits; to buy products with all sorts of add-ons they might not need; to pay Obamacare’s premium tax; and to pay a lot more, if they’re young, to subsidize older individuals.

That perpetual screeching sound you hear? Those are the brakes being applied to our national economy. When the reality of these premium increases go into effect, the brakes will be even more fully pressed to the floor. Were we lied to as Obamacare was pitched to the American public? Roy would maintain we were:

But the bottom line is this: President Obama and then-House Speaker Nancy Pelosi promised that premiums would go down for those who already have insurance. And yes, for those lower-income folks who benefit from the subsidies provided by other taxpayers, the costs they see may go down. But middle-class Ohioans will pay more in taxes to pay for those subsidies, and more in premiums.

Aside from the economy continuing to lag due to Obamacare, what else is going to get hit? Mark my words, watch charitable giving drop like a rock as many individuals determine that money that would or may have been given to a wide array of worthy causes is now directed to Obamacare.

The great law of unintended consequences knows no bounds.

Navigate accordingly.

Thank you to the regular reader who brought this story to my attention.

Larry Doyle

Isn’t  it time or overtime to subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook.

I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

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