New Jerseyans who purchase their health insurance in the individual market need to brace themselves: significantly higher premiums are right around the corner thanks to ObamaCare!
Yesterday, the federal HHS unveiled costs for insurance plans to be made available on ObamaCare’s exchanges which are set to launch next Tuesday, October 1. HHS claims that policies available on the exchange will cost less than expected. But as AFP’s State Policy Manager Nicole Kaeding pointed those numbers are a ruse and based on CBO estimates that are not real.
The proper comparison for policy holders is to compare what they pay now to what ObamaCare will cost them next year. The reality for those in the individual market will be serious sticker shock.
Avik Roy, Senior Fellow at the Manhattan Institute for Policy Research, shows that premium rate increases for a bronze level plan (which includes taxpayer subsidies to cover 70% of the costs) will be as follows:
- 46% increase for men aged 40
- 34% increase for men aged 27
- 26% increase for women aged 40
- 10% increase for women aged 27
In a sense, New Jerseyans on the individual market can consider themselves lucky. These rate increases pale in comparison to what will be happening around the country where the average rate for men will go up 99% and for women 62%. In North Carolina, Roy points out that “individual-market rates triple for women, and quadruple for men.”
The reason rates in New Jersey will not rise as dramatically is because our insurance market is already highly regulated. New Jerseyans will still be paying higher premiums than most across the country.
But the bottom line is President Obama, Harry Reid, Nancy Pelosi, et al, promised that ObamaCare would lower our premiums; that health care would be made more affordable for the American people.
Instead, that’s proven to be yet another false promise used to sell this unworkable, unaffordable scheme.