Post by Abracadabra on Sept 27, 2010 17:26:03 GMT -5
One of the major impacts of the Patient Protection and Affordable Care Act is that individuals and families will see higher health insurance premiums.
Obamacare imposes several costly new mandates and restrictions on health insurers and providers that will raise health cares costs and therefore premiums.
Below is a list of a dozen factors that will contribute to higher premium costs.
1. Mandated Benefits
2. No Cost-Sharing for Preventive Services
3. Limits on Cost-Sharing (on Covered Items) and Limits on Deductibles
4. Minimized Youth Discount
5. Elimination of the Good Health Discount
6. No Annual or Lifetime Limits on Health Benefits and Mandated Coverage of Children Under 26
7. No Pre-Existing Conditions Exclusion and Guarantee Issue
8. Cost-Shifting Because of Low Medicare Reimbursement Rates
9. Taxes on Insurers, Pharmaceutical Companies, and Medical Device Makers
10. Difficulty of Enforcing the Mandate
11. Adverse Selection
12. Increased Demand for Health Care
One of the central promises President Obama made during the presidential campaign was that he would “sign a universal health care bill into law by the end of [his] first term as president that will cover every American and cut the cost of a typical family’s premium by up to $2,500 a year.”[
Despite this promise, President Obama’s wishes do not trump basic supply and demand or common sense. If government requires that a product be made more generous and be available to more individuals, its cost will increase. There is no way around the fact that the vast majority of Americans will be paying higher prices for their insurance because of Obamacare.
www.heritage.org/Research/Reports/2010/09/Obamacare-Increases-Health-Insurance-Premiums
Obamacare imposes several costly new mandates and restrictions on health insurers and providers that will raise health cares costs and therefore premiums.
Below is a list of a dozen factors that will contribute to higher premium costs.
1. Mandated Benefits
2. No Cost-Sharing for Preventive Services
3. Limits on Cost-Sharing (on Covered Items) and Limits on Deductibles
4. Minimized Youth Discount
5. Elimination of the Good Health Discount
6. No Annual or Lifetime Limits on Health Benefits and Mandated Coverage of Children Under 26
7. No Pre-Existing Conditions Exclusion and Guarantee Issue
8. Cost-Shifting Because of Low Medicare Reimbursement Rates
9. Taxes on Insurers, Pharmaceutical Companies, and Medical Device Makers
10. Difficulty of Enforcing the Mandate
11. Adverse Selection
12. Increased Demand for Health Care
One of the central promises President Obama made during the presidential campaign was that he would “sign a universal health care bill into law by the end of [his] first term as president that will cover every American and cut the cost of a typical family’s premium by up to $2,500 a year.”[
Despite this promise, President Obama’s wishes do not trump basic supply and demand or common sense. If government requires that a product be made more generous and be available to more individuals, its cost will increase. There is no way around the fact that the vast majority of Americans will be paying higher prices for their insurance because of Obamacare.
www.heritage.org/Research/Reports/2010/09/Obamacare-Increases-Health-Insurance-Premiums