While President Barack Obama and his supporters were trumpeting the 7.1 million Obamacare “enrollment” mark, an almost meaningless given that up to 20% of purported enrollees haven’t paid, health insurance companies were, once again, warning of potentially shocking premium increases for 2015:
[I]nsurers have already said that the first group of new enrollees under Obamacare, as the law is widely known, represent a higher rate of older and costlier members than hoped. To keep their health plans from losing money in the coming years, many expect monthly premium rates to rise by double-digit percentages in some parts of the country.
That could set the stage for a public outcry ahead of congressional elections this year, giving ammunition to Republicans and creating new friction with the White House that could endure into the 2016 presidential election.
“I do think that it’s likely premium rate shocks are coming. I think they begin to make themselves at least partially known in 2015 and fully known in 2016,” said Chet Burrell, chief executive officer of CareFirst BlueCross BlueShield. “That will be different in different parts of the country. I don’t think it will be uniformly the same.”
The rate increases will be determined on a state-by-state basis, and the percentages of young and healthy people who selected plans in some states were better than others.