Obamacare’s Famous Bent Cost Curve Nearly Doubles Insurance Rates October 25, 2015Posted by geoff in News.
“If you like your plan, you can keep your plan.” The lie continues.
It was always obvious that the Affordable Care Act was only “Affordable” in the sense that the very poor and very sick would receive coverage they would otherwise not have been able to afford. But for everybody else, “Affordable Care” would become unaffordable.
That’s the experience small business owners in Santa Cruz County are now having:
The owners of the Sockshop & Shoe Co. face a stunning 85 percent increase in the cost of their group health insurance plan for their employees.
This is not what they expected from the Affordable Care Act. They thought rates could go up 10 to 12 percent, hoping as more people got health coverage, costs would come down, but that’s not happening.
The premium increase Sockshop faces is not unusual in Santa Cruz County.
“I am already delivering 75 percent to over 100 percent rate increases to small business group plans that now have to move to the new Affordable Care Act ‘metal’ plans,” said Pamela Fugitt-Hetrick of DCD Financial and Insurance Services in Santa Cruz. “They are still determining if they can keep group insurance going.”
It’s a story you’ll be hearing all over California:
Some 35 states are allowing renewal of grandmothered plans but the board of Covered California, which runs the state health insurance exchange, declined to do so, saying there would be no consumer benefit.
With Sockshop’s plan expiring Dec. 1, the Gils have to switch.
According to the Los Angeles Times, 70 percent of small businesses in California offering employee health insurance will be switching because their plans will no longer be available.
This is one of the wonders of government: We used to have 85% of Americans insured (prior to the recession). Now we have 88% of Americans insured. But somehow, in order to provide insurance for that extra 3%, we have to nearly double the costs for everybody else.
Another triumph of government efficiency.
[Great article by the Santa Cruz Sentinel, by the way – well worth reading the whole thing.]