Monday, February 25, 2013

They're Finally Worried About Rising Insurance Premiums

Remember during the healthcare debates a couple of years ago when President Obama promised that if his Obamacare reforms were to pass we could all still have the same doctors and insurance as we do now? Well as it turns out that is just a bunch of baloney. But anybody who has a middle school education could probably have figured it out. The excuse that having more young healthy people buy health insurance, which is the basis of the PPACA's individual mandate to purchase insurance, would broaden the risk pool and lower the monthly premiums has turned out to be more empty promises made by empty suit politicians.

As we get closer to the full implementation of Obamacare in 2014, the states' governors are finding out that health insurance premiums are rising rapidly, at several times the rate of inflation. They're now noticing that clauses inserted into the statute to encourage its passage has adversely caused premiums to skyrocket. Stipulations like nobody can be turned down for health insurance regardless of medical condition. Obviously this encourages people from buying any insurance at all until they are actually sick. Then by all means rush off the insurance application form when you finally need it since the government has told them you can't be turned away.

Or how about young adults who can stay on their parents' insurance until the age of 26. Hello. You're 26 years old! You should have the lowest insurance payments of any demographic. Have some pride--buy your own freaking health insurance. Do you still need to piggyback on your poor parents' insurance after they've paid for all your upbringing and college bills? The insurance isn't free; your parents are paying it instead of you. Stop sponging off your parents for once in your life and act like a grownup.

Then there is the mandate that insurance for the middle aged can cost no more than three times that of the young. In the past this ratio could be five or greater. Naturally the insurance companies are not going to lower premiums on the older people. They'll just increase it on the young to get in line with the three to one ratio. Did nobody figure this out during the debates?

I personally have seen my premiums explode in the last few years. Since I am considered an individual contractor, I pay for my own health insurance. I don't have the luxury of having a large pool of fellow employees to spread the cost. In the past twelve months, my premiums have increased 26%. Compared to two years ago, my insurance payments have gone up 40%. In the meantime I've gotten a pittance back from my insurance company because of one of the so called benefits of Obamacare, that these companies must spend at least eighty percent of the premiums they collect on healthcare.

The government insists that insurance payments will be lower for most Americans. That is because the feds will provide subsidies to families of four making up to $92,000 per year. Unfortunately I am not among those who are in line to get free money from the government. And I imagine most people who have two middle class wage earners in the family will price themselves out of the subsidies too.

This is all part of the giant wealth transfer that is occurring in this country. The majority of the people vote to keep their taxes low and government handouts high while raising the taxes of the minority who earn, that's right EARN, their hard earned dollars that they are so envious of. I imagine that in a couple of years my family's health insurance will become so expensive that I too will have to rely on the fed's insurance exchange to afford one. Then I too will become wholly dependent on my government for what used to be a freely capitalist marketplace. The government's tight clutch on us all appears inevitable.

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