Jan 17, 2017

The Real Impact of Obamacare: Health Care That Costs More

Post by Geoff Holtzman

When it comes to health care, a clear majority of Americans say cost is their main concern. No wonder: Obamacare has created higher costs for millions of people throughout the country.

Although President Obama promised that Americans would see their health premiums go down by an average of $2,500 per year, average premium rates for Obamacare’s individual plans are actually rising by 25 percent this year. And while the White House and other Obamacare supporters claim that the soaring rates for 2017 are merely a one-time fluke, this isn’t the first time rates have exploded under the law. In fact, from 2013 to 2014, the year Obamacare’s marketplaces went live, states experienced an average individual premium rate hike of 41%.

In addition to rising premiums, Obamacare’s deductibles, the amount of money patients must pay out of pocket for services before their insurance kicks in, have climbed as well. For 2017, annual deductibles on individual “bronze-level” plans through the law will average more than $6,000. For families, the number clocks in at over $12,000. And individuals with coverage through their jobs have seen their deductibles skyrocket by 61% since the law was passed in 2010.

Obamacare’s unaffordable deductibles are a major reason why many Americans with plans through the law are finding their coverage to be almost useless.

Finally, there the myriad higher costs Obamacare has imposed on everyday working Americans. Obamacare’s individual mandate has cost taxpayers who did not purchase health insurance an additional $3 billion in penalties on top of what they’ve already paid the government over the past few years. And the failure of many Obamacare CO-OPs, insurance companies that were created by the law using public money, has cost taxpayers almost $1.8 billion – money taxpayers will likely never see again.

As the old saying goes, numbers don’t lie. And when it comes to Obamacare’s true costs, the numbers ain’t pretty.