The healthcare premium pattern

Friday, January 18, 2013
 | 
Becky Yeh - California correspondent (OneNewsNow.com)

To understand whether ObamaCare will actually drive down healthcare costs, a Christian activist says it's important to take a look back at history.

Merrill Matthews and Mark E. Litow warn in a Wall Street Journal opinion piece that ObamaCare mandates will drive up the cost of health insurance premiums in individual markets. The two note that in the mid-1990s, eight states -- New Jersey, New York, Maine, New Hampshire, Washington, Kentucky, Vermont and Massachusetts -- required health insurers to accept every applicant and to charge a common premium for those insured. As a result, premiums skyrocketed.

So even though President Obama promised that premiums for a family would be lower after his first term in office, prices are actually now $3,000 higher.

Hebron, Lawrence (Alliance of Christian Patriots)Lawrence Hebron of the Alliance of Christian Patriots tells OneNewsNow the government follows a pattern when it gets involved in health insurance.

"Up until about four years ago, what healthcare stories dominated the news? Well, there were the problems with Medicare, the problems with the veterans healthcare system, and the high cost of insurance," he notes.

"Who runs Medicare? That would be the federal government. Who administers the veterans hospitals and related healthcare? Oh, that's the federal government also. Well, who regulates the healthcare insurance industry and is responsible for the high cost there? Oh, that would be the federal and state governments. Do you see a pattern here?"

Since ObamaCare requires guaranteed issue, community rating, and forces insurance to fund uncovered medical conditions, Matthews warns that premiums will "shoot up" and that "some may even double." Major employers will not see a significant increase, while small businesses will encounter a higher increase. The individual market will be hit the hardest.

States that do have signature ObamaCare mandates typically have higher premiums than states that do not.

Merrill Matthews is a resident scholar with the Institute for Policy Innovation. Mark Litow is a retired actuary and past chairman of the Social Insurance Public Finance Section of the Society Actuaries.

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWSBRIEF

SUBSCRIBE

VOTE IN OUR POLL

What bothers you most about Huma Abedin's connection with radical Islam?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

Syrian rebels advance on Kurds as Turkish strikes kill 35
German economy minister says EU-US trade talks have failed
Locally transmitted Zika virus infects 41 in Singapore
Gender inequality costs sub-Saharan Africa $95B: UN
Iran confirms arrest of member of negotiation team with West
Latest: Sheriff: Suspect confessed to nuns' killing
Mother charged in drowning death of son in central Ala.
3rd suspect in NM girl's horrific death held on bail

LATEST FROM THE WEB

Morning Consult Poll: Clinton lead drops from 9 pts to 3 in just 3 weeks
Trump vows to deport 'criminal illegal immigrants ... within one hour' of swearing-in
Pence: Trump's position and principles 'have been absolutely consistent'
Greg Laurie: God doesn't send people to hell; They send themselves
Trump talks tough on immigration: Deporting criminal illegals 'on day one'

CARTOON OF THE DAY

Cartoon of the Day

REASON & COMPANY

NEXT STORY
A look at this year’s Social Security changes

An expert in retirement security is adding his two cents to thoughts on this year's changes with Social Security.