This week the Society of Actuaries released a study that demonstrates costs for health care will rise for many under Obamacare. In a study of individual policies it was found that states offering low cost insurance the prices could rise significantly with increases as high as 80% in Ohio and Wisconsin, and 60% in California, Idaho, Maryland and Indiana. It is expected that much of the increases would then be passed on to customers through higher premiums.
Criticized by the Obama administration as being biased the SoA states they were commissioned to do the evaluation by UnitedHealth Group but denies they skewed the information. Read the report here.
Department of Health and Human Services Secretary Kathleen Sebelius stated: “These folks will be moving into a really fully insured product for the first time, and so there may be a higher cost associated with getting into that market. “But we feel pretty strongly that with subsidies available to a lot of that population, that they are really going to see much better benefit for the money that they’re spending.”
It is worth noting that individual insurance policies currently make up only 6% of health coverage. The study did not evaluate employer insurance costs. It is also worth noting that Secretary Sebelius and Team Obama continue to promote taxpayer sponsored subsidies to reduce expenses to many recipients.
This sudden admission of increased cost as now being reported by many Obamacare proponents may be a signal of realization that the promised reduction in health care will not be as promised.
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