Study shows ObamaCare makes insurance coverage more expensive
The White House is beginning yet another push to sell ObamaCare to a skeptical American public, Politico reported on Friday, in an effort to try to get the uninsured to take part in the state health insurance exchanges, which are expected to open on October 1st.
Participation in ObamaCare’s state insurance exchanges, especially from young Americans, will be a measure of “success” for the administration amid implementation problems, delays of key provisions, and rising premiums that have been attributed to the law. Polls continue to show that Americans disapprove of the law and want it repealed
The White House is so desperate for good news with ObamaCare that they’re literally trying to put some very odd spin on news stories about the law. The Weekly Standard points to one very odd recent example:
David Simas, a White House staffer, tweets (and the White House retweets) a link to an article and adds, “More good ACA [Obamacare] news. 21% savings on premiums for Ohioans who buy their own health insurance because of the ACA.”
But, as The Weekly Standard points out via The Plain Dealer, this isn’t actually the good news that the White House is trying to make it out to be because insurance premiums are 34% higher with ObamaCare, according to a study conducted by the RAND Corporation (emphasis added):
Without factoring in subsidy offsets and the policies that people are likely to buy, premiums for individual policies in Ohio will average $5,312 in 2016, according to figures from Rand. That’s 34 percent higher than the average for individual premiums without Obamacare, Rand’s figures show.
Christine Eibner, a senior Rand economist and lead author of the study, told us in a telephone interview this afternoon that she considers this is a realistic way of comparing premiums. It compares premiums for coverage people will get on the exchange with coverage they have or would have had without Obamacare.
Based on that calculation, the average premium for individual policies in Ohio would rise by $900, or 22.65 percent. That’s nearly half of Taylor’s unweighted calculation.
So ObamaCare has made insurance coverage more expensive, a fact that’s not even contested by the study. But, according to the White House, that’s a win because taxpayer-funded subsidies aren’t going to cover the difference. That doesn’t even make sense, no matter how you try to spin it.