Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • COVID-19
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Your Health
  • Ron Paul
  • Bank Credit & Money
  • Dick Young’s Safe America
  • Your Survival Guy’s Super States
  • Critical Race Theory
  • NNT & Cholesterol
  • Work to Make Money/Invest to Save Money

Insurance Companies Artificially Lower Premiums and Charge Taxpayers for Their Losses

July 17, 2015 By Debbie Young

Even with the Supreme Court’s decision upholding federal subsidies in King v. Burwell—and despite President Obama’s claim to the contrary—Obamacare will remain unaffordable for many Americans. Read here from Stephen T. Parente, a professor of health financial at the Carlson School of Management, why the cost of health-care insurance will become increasingly intolerable “both financially and politically.”

Parente writes:

My research shows that the average 2016 family plan could experience premium increases of 11.2%, compared with 8% hikes for individual plans. The relatively cheap bronze plans, which cover 60% of a consumer’s health-care costs, could see the highest jumps—16.6% and 11.5%, respectively. Individual silver plans could see a relatively low increase—3.1%—but families won’t be so lucky, potentially paying 8.4% more.

That won’t stay the same in 2017, however, when individual silver-plan premiums could rise by an average of 12.1%, surpassing a 9.2% increase for families. Across every type of health-care plan—bronze, silver, gold, platinum and catastrophic—families could be looking at average increases of 7.3%, compared with 11% premium hikes for individual plan holders.

To put these numbers in context: For consumers with silver plans, which account for about two-thirds of the ACA market, the average individual could see annual premiums rise to $3,700 over the next year and a half from $3,200. A family could expect an increase to $15,400 from $13,000 over the same period.

After 2017, most ACA-compliant plans will likely fall into a pattern of annual premium increases of between 3%-6%, which will persist for the next decade and likely beyond. By 2023, I estimate that the average family plan could be 61% more expensive than it is in 2015, with individual plans only one or two percentage points behind. These increases are so high that direct taxpayer subsidies to consumers are unlikely to keep up. So the cost, both financially and politically, will become increasingly intolerable.

Policy makers should keep this in mind in the wake of the Supreme Court’s decision upholding federal subsidies in King v. Burwell . Despite the court’s decision, and the president’s claims to the contrary, the Affordable Care Act remains unaffordable for too many Americans—and that will only get worse in the coming years.

If you’re willing to fight for Main Street America, click here to sign up for the Richardcyoung.com free weekly email.

Related Posts

  • Obama Promises To Lower Health Insurance Premiums by $2,500 Per Year
  • A New Belief in the Sanctity of Insurance Companies
  • How Rolling Back ObamaCare Regulations Would Lower Premiums for All
  • Author
  • Recent Posts
Debbie Young
Debbie, editor-in-chief of Richardcyoung.com, has been associate editor of Dick Young’s investment strategy reports for over three decades. When not in Key West, Debbie spends her free time researching and writing in and about Paris and Burgundy, France, cooking on her AGA Cooker, driving her Porsche Boxter S through Vermont and Maine, and practicing yoga.
Latest posts by Debbie Young (see all)
  • Greetings From Paris & Le Bristol Hotel - June 24, 2022
  • Biden, a Job Killing Machine - June 24, 2022
  • Good News for the 2nd Amendment - June 24, 2022

Dick Young’s Must Reads

  • The Problem in America
  • Progressive Liberalism Has Dragged America near Ruination
  • “The Great Object Is that Every Man Be Armed”
  • My Smith & Wesson Revolvers Home Defense Team
  • What’s the Best Survival Currency?
  • Work to Make Money/Invest to Save Money
  • Richard Feynman Solved the Space Shuttle Disaster Mystery
  • CONSTITUTIONAL CARRY: Alabama Becomes 22nd Permitless Carry State
  • Protection While Traveling in France
  • Is Rutin Useful in Preventing Blood Clots?

Disclosure

RSS Youngresearch.com

  • Your Survival Guy: Clearing the Decks, Buying a Boat, Seeing the World and More
  • Is the Great Job Boom Over?
  • Here’s Why You Need a 15-Year Retirement Investment Plan
  • Will ESG Do to Steel Prices What It Did to Gas Prices?
  • Kellogg Cuts Loose with Split Plan
  • Apple Shares Resilient in the Face of Recession
  • MONEY TALKS: The Best Service in Paris
  • Predictions of MEGA-SPENDING on Metaverse
  • RECESSION? Dow 25,000, $8 Gas, Rising Interest Rates, Spell Mid-term Crack Up
  • Investing During a Recession

Greetings From Paris & Le Bristol Hotel

The Most Controversial Restaurant in Paris?

Your Survival Guy: Clearing the Decks, Buying a Boat, Seeing the World and More

Russia’s “Unsubtle” Artillery Attacks Not Necessarily “Archaic”

FLORIDA DODGED A BULLET: Elected Superb DeSantis Over Unstable Gillum

Biden, a Job Killing Machine

Copyright © 2022 | Terms & Conditions | About Us | Dick Young | Archives