ObamaCare Premiums Surge in 2017 : 40 Million Uninsured by 2027

Goodness - still more bad news about our guiltless leader's promises for a socialist utopia. Mr Obama's agenda and ideology is not that much different then what we have seen from the liberal democrats in the past, it's just that Mr Obama has no fear about the people not liking his vision for our health care, or for that matter, what the people think about his push to "fundamentally change" the country from a representative federalist society to a progressive socialist liberal democracy. The few controlling the many.

He believes he has the authority, a mandate, because the people voted for him twice even in the face events that have caused domestic destruction to our country, and his vision for foreign affairs have plunged the world into total chaos. The people are living the pain caused by Mr Obama and yet they voted for him again.

And to make sure his plans for change come true, he wants to rewrite our Constitution to reflect his forward thinking, a constitution that is changeable and more representative of a nation where we are just one of many. A living document.

If Mr Obama believes our country needs to move forward, 'single payer health care', but his vision is hampered by the  Constitution, under this new document he will have the power to change it without the people or congress becoming involved. Why bother with what the people want or believe when he already knows what's best for everyone.

Fortunately the last election is casting some light on the darkness that is progressive socialism movement and the people might just have a say concerning in his vision after all. But don't hold your breath. Once the ship of state is moving in one direction it becomes very hard to change directions.

Expect a Big Premium Hike in 2017
Source: Stephen T. Parente, "A Lull Before the ObamaCare Rate Storm," Wall Street Journal, December 16, 2014.

December 29, 2014

Are your Obamacare premiums lower than you expected this year? Don't celebrate quite yet. Stephen Parente, health finance professor at the University of Minnesota, says premiums are lower than they would otherwise be because of two temporary Obamacare programs that help insurers keep costs down. But those programs expire in 2017, and that's when Parente says big rate hikes will come.

Risk corridors and reinsurance are two Obamacare programs that are slated to run through 2016. Risk corridors transfer funds to insurers whose costs are higher than expected, while reinsurance compensates insurers whose enrollees have medical costs above $45,000 in a single year. Senior Fellow John R. Graham recently explained how these programs work in an NCPA report.

Ultimately, taxpayers are on the hook for these programs. Parente says the programs allow insurers to charge lower premiums, because insurers will be compensated if costs are too high. However, on January 1, 2017, the reinsurance program and risk corridors expire. What will happen?

According to Parente's research with the University of Minnesota, premiums after 2016 will increase quickly, especially for cheaper plans. Bronze family plans could rise by 45 percent (from $9,000 to $13,000) while individual plans could skyrocket by 96 percent (from $2,000 to $4,000). What will result?

 A rise in the uninsured rate. Parente estimates a 13 drop in the size of the individual health insurance market in 2017 alone, followed by a 1 percent decrease each year for the next decade. That would mean the uninsured rate could reach 40 million within 10 years -- 10 percent higher than the uninsured rate today.