Obamacare was supposed to be so good, necessary, and affordable that the only way we were going to be able to find out what was in the legislation was to pass it.
If the government calls something affordable, you’d better believe that it’s anything but affordable. Like every other government program or mandate, Obamacare’s nothing more than wealth redistribution. In order to entice customers to sign up under an Obamacare exchange, they offer subsidies to help “offset the costs” for the consumer. But who helps fund those subsidies? Taxpayers of course.
Obamacare exchange customers are about to see spikes in their premiums, the Congressional Budget Office predicted Monday, saying insurers that offer plans are facing twin pressures from the government and the marketplace that will mean hikes of more than 8 percent a year through 2018.
Now in the second year of full operation, the exchanges are critical to the success of the law. The government is using tax subsidies to attract more customers to help offset costs for the rest of the system.
Nearly 11.7 million Americans bought plans on the exchange in the second enrollment period, Health and Human Services Secretary Sylvia Mathews Burwell announced Monday afternoon, hours after the CBO’s analysis was released. The CBO said premiums for the key “benchmark” exchange plans will rise an average of 8.5 percent per year from 2016 to 2018, faster than the rest of the health care market.
The budget analysts said part of the reason is that the plans offered now are narrower than private plans and reimburse providers at lower rates. They said both trends probably will change, forcing insurers to raise premiums.
This is what should be expected whenever the government engages in top-down control of things that should remain free and privately run in a marketplace. Aside from dealing with prosecuting and convicting those guilty of fraud, the government has no place getting this involved in businesses and industries. When they do get involved, the quality of products and services goes way down, and the costs go way up.