Monday, September 13, 2010

Your individual cost may vary

Janet Adamy and Evan Newmark of the Wall Street Journal discuss the effects of new mandates in ObamaCare with respect to rising health care costs.

It's not rocket science as Newmark asks the basic question: How do you add benefits (like letting that 24 yr. old currently taking up space in your basement to stay on your health care plan or prohibiting denial of coverage for children with pre-existing conditions) and yet decrease the cost of health care?

(health care discussion takes up the first half of this video clip)

The Democrats thought they were being too cute by a half by front-loading many of these "benefits" hoping that would score them points with the electorate when it appears that the exact opposite has happened. You see, as Speaker Pelosi has implored us, we are indeed finding out what is in the legislation and we aren't liking it as one of the results has been price signaling that has caused insurers to raise their rates.

Just how much depends upon the insurer and the coverage they carry as the chart below indicates:

As we discussed previously, the larger insurers are better able to absorb the new "benefits" as their coverages may already contain those provisions, however, the smaller insurers that carry low costs/low benefits plans favored by individuals and small businesses are getting hammered by ObamaCare.

The very sector of the economy that is inherently in the best position to quickly add jobs and help bounce this country out of recession is being further hamstrung by a costly regulatory regime.

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