Obamacare premium shock

Washington Examiner Editorial:

To President Obama’s now-infamous promise that Obamacare “will lower premiums” for health insurance can now be added this whopper from Gary Cohen, described by the Wall Street Journal as “a top regulator” at the Department of Health and Human Services: “The prices are affordable.” Judging by the schedule of health insurance premium prices made public this week by the Obama administration for coverage offered on government-run exchanges in 36 states, Cohen certainly has an odd idea of affordability.

Based on the example of a 27-year-old male nonsmoker living in Nashville, Tenn., who presently can get a bare-bones policy for $41 a month, the Journal said the equivalent coverage under Obamacare will cost $114 a month. That’s a 178 percent increase. Obamacare defenders will say that’s an apples-and-oranges comparison since the government mandates benefits that aren’t presently included in a bare-bones policy. That’s true, but it doesn’t change the fact that the young consumer is being forced to pay 178 percent more to buy a product he may not want or need.

The more likely outcome is millions of similarly situated young consumers will opt to have no coverage because the premium increases in other cities across the country will be comparable or, in many cases, much steeper. In Miami, the same 27-year-old now paying $66 per month will pay $163, a 147 percent increase. The figures for other major cities include Chicago (69 percent), Atlanta (286 percent), New Orleans (336 percent), Houston (119 percent), Philadelphia (167 percent) and Omaha (523 percent).

And don’t forget that to keep down costs while meeting Obamacare’s regulatory requirements, many insurance companies have opted to strip down the provider networks of the policies they are offering on the exchanges, meaning fewer choices of doctors and hospitals.
...

These rates are based on the questionable assumption that these young people will actually make the purchase at that rate rather than foregoing coverage altogether.  If they don't buy, the rates will go up for those who do including older people whose insurance was supposed to be subsidized by the young and healthy.