Even liberal states see the ill effects of Obamacare

Boston Globe Editorial:
MASSACHUSETTS HAS made a concerted effort in the last few years to rein in health care costs for small businesses. But new federal regulations written to implement the Affordable Care Act threaten to undercut those efforts — and saddle thousands of Bay State businesses with big increases in premiums.

State law currently allows insurers to consider a range of factors that often reduce premiums for small firms. But under the new federal regulations, most of those rating factors will no longer be allowed. For example, insurers won’t be able to consider the risks inherent to the industry a company is in, or whether the company has a wellness program, or how many employees it has, or what percentage of them participate in its health plan. Those regulations will also end discounts for small businesses that have joined health-insurance-purchasing cooperatives. When the law allowing those cooperatives passed in 2010, Governor Patrick hailed it as an important step in addressing health care costs for small firms.

The overall result of those federal regulations is that small businesses with fewer industry risks, a proactive wellness approach, and (relatively) more employees will end up subsidizing companies that would otherwise be more expensive to insure. Because small businesses and individuals are merged into one pool as far as assessing risk, firms will also end up subsidizing the costs of coverage for people buying individual plans.
They are seeking a waiver from the evils of Obamacare, which back during the campaign we were told was modeled on the Massachusetts healthcare reforms.   It is just another example of how Obamacare is disrupting the marketplace for health care.  It is a disaster for all but a few.


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