Despite all the talk about how Obamacare would lower health care costs, it’s already becoming clear that it just won’t be the case.
The Indianapolis Star reports that companies can expect employee health insurance costs to rise even faster. “Driven by worries about the economy and possibly the effects of health-care reform, [health insurers] are raising rates this year for family coverage through employer-sponsored plans… from 8 percent to 21 percent, which is considerably higher than the 5 percent increase the Kaiser Family Foundation reported in 2009.”
Employers will undoubtedly pass the price hikes on to their employees or switch to less expensive plans with higher deductibles, lesser coverage or both. Those outcomes aren’t exactly hallmarks of successful health care reform.
The Obamacare legislation contained numerous “reforms” (PDF) that can’t help but escalate costs or lower benefits for those who get their health coverage through their jobs. In addition to the new taxes on high-value “Cadillac” health insurance plans, there are increases in the Medicare Part A hospital insurance tax for high earners. And there are broad fees on the pharmaceutical and insurance industries that will be passed on to consumers at all income levels.
During his final push to win passage of the health bill, President Obama told a crowd in Strongsville, Ohio, that premiums would “fall by as much as 3,000 percent” under his plan. The evidence rolling in shows that the President not only misspoke, he got the entire direction of premium costs under Obamacare exactly wrong.
Heritage has long promoted putting health coverage decisions in the hands of patients, not government bureaucrats. To learn more on how to do that, click here.