ObamaCare Cost Increases in 2017

The Center for Health and Economy has released a study estimating the increased costs to taxpayers through the federal government in 2017.  ObamaCare premiums will be 22% higher in 2017, but the average monthly subsidy cost will go up by 26% from $291/month to $367/month.  The subsidy percentage increase is greater since incomes are losing ground relative to the premium increase.

The study says 11.1 million people per month are on ObamaCare in 2016 and this number is expected to increase to 11.4 million a month in 2017.  Of these 9.39 million in 2016 received tax credits and 9.65 million are expected to receive tax credits in 2017.  In 2016, 84.6% of the people on ObamaCare received a tax credit subsidy.  The study expects the same percentage in 2017. Clearly if you do not qualify for the tax credit subsidy, there is little likelihood that you will buy your health insurance through the ObamaCare exchanges.

The resulting increase in federal payouts from 2016 to 2017 is $9.8 billion.  The 2016 cost of the subsidies was $32.8 billion and the expected 2017 cost will be $42.6 billion.  The federal subsidies will therefore cost 29.9% more in 2017 than in 2016.  Those states that expanded their Medicaid rolls will also see large cost increases.

As an American, your health insurance premiums will go up, your deductible will likely go up, your co-pay will likely go up, your federal government costs will definitely go up, and in many states your state government costs will go up in 2017 thanks to ObamaCare.  Obama's transformation of America leaves those of us who are not subsidized with no hope.  Does it even provide hope to those who are subsidized as peons or serfs to the state?

Only 19% of New Enrollments in Medicaid in 2014 were due to ObamaCare

Advocates of ObamaCare like to claim that all of the new enrollments in Medicaid in 2014 were due to ObamaCare.  So you find claims that ObamaCare provided insurance coverage to 17 million people in 2014.

According to a study one of whose authors is Jonathan Gruber, a chief moving force behind ObamaCare, only 19% or 3.3 million of the new Medicaid enrollments were due to ObamaCare.  The remaining new enrollments had been eligible for Medicaid prior to the passing of the ObamaCare act.

This should be remembered when considering the repeal of ObamaCare.  It will be said by some that all of the new enrollments in Medicaid since it was passed represent people who will lose insurance coverage when ObamaCare is repealed.  This is not true.  When ObamaCare was passed 6 million people lost their insurance coverage and had to sign up under new plans under ObamaCare or pay a penalty tax.  Yet only 3.3 million people were newly able to gain insurance under the expansion of Medicaid.

Some people with pre-existing conditions were able to get insurance more affordably under ObamaCare in 2014, but that was not an increase outside of Medicaid expansion large enough to offset the remaining part of the 6 million who lost their insurance.  The total number of people who gained insurance in 2014 was 11.6 million people.  The difference between that number and the 17 million said to be insured under ObamaCare in 2014 is those who lost insurance due to ObamaCare and had change their insurance plan, at inconvenience to themselves and generally at a higher cost.

The number of people who benefited from ObamaCare is greatly exaggerated, while the damage in insurance loss, lowered insurance and medical care quality, higher premiums, and higher deductibles is minimized by those who promote ObamaCare.

See here and here.