American Elephants


Affordable? Not So Much. Some Big Hikes. by The Elephant's Child

Conservatives have always giggled at the title chosen for ObamaCare — “the Affordable Care Act” — because having observed all the tricks and mandates crammed in, knew it was going to be increasingly unaffordable. And so it is. State Insurance Commissioners are beginning to report in.

Obama said at a July town hall in Nashville, Tennessee that he expected premiums to come in significantly lower than what’s being requested. He added that Tennesseans had to work to ensure the state’s insurance commissioner “does their job in not just passively reviewing the rates, but really asking, “O.K, what is it that you are looking for here? Why would you need very high premiums?”

The Tennessee commissioner, Julie Mix McPeak responded on Friday by approving the full 36.3% increase sought by the biggest health plan in the state, BlueCrossBlueShield of Tennessee. She said the insurer demonstrated that the hefty increase was needed to cover higher than expected claims from sick people who signed up for individual policies in the first two years of the Affordable Care Act.

Oregon’s Laura Call allowed an average 25.6% increase for that state’s biggest plan. In Ohio, it was 14.5%, in Michigan, 11.4%.

Democrats typically add mandates designed to make particular groups like the plan, then are astonished to find that it costs a lot more. Do remember that the Affordable Care Act was passed without a single Republican vote because Republicans thought it would not work and would soon become unaffordable. They just had no idea that it would happen quite so soon.

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Some plans offered low rates for the first and second year eager to  capture new business. Others simply found that business was more expensive than expected. Some programs designed to cushion insurers  against high risk participants are ending. Some state commissioners have not yet reported their decisions, or completed their analysis.


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