Millions of individuals are seeing their healthcare plans cancelled and premium prices skyrocket throughout the country in order for insurers to be in compliance with the Affordable Care Act.
While supporters of Obamacare have claimed premiums will go down for millions of Americans, according to Avik Roy of the Manhattan Institute, this is simply not the case for younger men and women who are receiving premium increases as high as 99% and 62% respectively.
According to a recent Manhattan Institute study released earlier this month, the average state will see an increase in premiums of 41 percent. The eight states experiencing the largest average premium increase are:
1. Nevada (+179%)
2. New Mexico (+142%)
3. Arkansas (+138%)
4. North Carolina (+136%)
5. Vermont (+117%)
6. Georgia (+92%)
7. South Dakota (+77%)
8. Nebraska (+74%)
Why are individuals’ premiums going up? It's simple. Obamacare’s excessive regulation and taxation increase the burdens on individuals and businesses. Obamacare is predicated on the concept of cost sharing and shifting the distribution of healthcare costs from the elderly and often sick to the relatively young and healthy (who usually have very low or nominal healthcare expenses). Furthermore, new regulations prevent insurers from charging different rates to males and females. Females often have higher medical costs compared to males, which is one reason why men are facing steeper price increases under Obamacare.
The apologists for the ACA claim that people shouldn’t worry about the increase in costs because many people will receive government subsidies. However, this is a misleading statement. After all, it is the taxpayers that are funding these subsidies. Therefore if you’re lucky enough to receive a subsidy for your new, more expensive healthcare, you are essentially receiving money that you have already paid the government. Furthermore, if you receive a subsidy there is a very good chance it will not cover the increased cost.
Prior to the ACA, 27 year old males paid an average $133 in premiums. After Obamacare, they are forced to pay $201 in premiums. But don’t worry! With a subsidy, said males can receive a whopping $12 (on average) to ‘offset the costs,’ causing a 41% increase to their average premiums. While these increases seem high, it is far worse for the young adults in Nebraska. According to Avik Roy, the average premium increases for 27 year old men and women has risen 279 percent and 222 percent respectively due to Obamacare.
One would think that a law titled the “Affordable Care Act” would make healthcare more affordable for all, not just the elderly. These discriminations based on age and gender are dramatically increasing the cost of healthcare for millions throughout the country. Regardless of one’s political affiliation it is clear that Obamacare is not the answer to solving the issues plaguing the American healthcare industry.