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The Affordable Care Act was supposed to make health care more affordable, but a newly released study of insurance policies before and after Obamacare shows that average premiums have skyrocketed, for some groups by as much as 78 percent. Average insurance premiums in the sought-after 23-year-old demographic rose most dramatically, with men in that age group seeing an average 78.2 percent price increase before factoring in government subsidies, and women having their premiums rise 44.9 percent, according to a report by HealthPocket scheduled for release Wednesday.
The study, which was shared Tuesday with The Washington Times, examined average health insurance premiums before the implementation of Obamacare in 2013 and then afterward in 2014. The research focused on people of three ages — 23, 30 and 63 — using data for nonsmoking men and women with no spouses or children. The premium increases for 30-year-olds were almost as high as for 23-year-olds — 73.4 percent for men and 35.1 percent for women — said the study, titled “Without Subsidies Women & Men, Old & Young Average Higher Monthly Premiums with Obamacare.”
“It’s very eye-opening in terms of the transformation occurring within the individual health insurance market,” said Kev Coleman, head of research and data at HealthPocket, a nonpartisan, independently managed subsidiary of Health Insurance Innovations in Sunnyvale, California. “I was surprised in general to see the differences in terms of the average premiums in the pre-reform and post-reform markets,” Mr. Coleman said. “It was a higher amount than I had anticipated.”
The eye-popping increases among younger insurance buyers could be a problem for Obamacare’s long-term solvency given that young people are needed to offset the higher costs associated with older policyholders. “Obviously they’re very important, and as much as they’re healthier, they tend to use health care less, so you want to try and have as many of those people enrolled as possible. And the cost for them went up very [steeply],” Mr. Coleman said. The price increases for 63-year-olds were less dramatic: a 37.5 percent increase on average for women and 22.7 percent for men.
The study doesn’t include the federal premium subsidies offered to those earning between 100 and 400 percent of the federal poverty limit, but Mr. Coleman points out that not everyone in that bracket qualifies because their premiums must exceed a certain percentage of their income
http://www.washingtontimes.com/news/2014/oct/28/obamacare-sends-health-premiums-skyrocketing-by-as/
The study, which was shared Tuesday with The Washington Times, examined average health insurance premiums before the implementation of Obamacare in 2013 and then afterward in 2014. The research focused on people of three ages — 23, 30 and 63 — using data for nonsmoking men and women with no spouses or children. The premium increases for 30-year-olds were almost as high as for 23-year-olds — 73.4 percent for men and 35.1 percent for women — said the study, titled “Without Subsidies Women & Men, Old & Young Average Higher Monthly Premiums with Obamacare.”
“It’s very eye-opening in terms of the transformation occurring within the individual health insurance market,” said Kev Coleman, head of research and data at HealthPocket, a nonpartisan, independently managed subsidiary of Health Insurance Innovations in Sunnyvale, California. “I was surprised in general to see the differences in terms of the average premiums in the pre-reform and post-reform markets,” Mr. Coleman said. “It was a higher amount than I had anticipated.”
The eye-popping increases among younger insurance buyers could be a problem for Obamacare’s long-term solvency given that young people are needed to offset the higher costs associated with older policyholders. “Obviously they’re very important, and as much as they’re healthier, they tend to use health care less, so you want to try and have as many of those people enrolled as possible. And the cost for them went up very [steeply],” Mr. Coleman said. The price increases for 63-year-olds were less dramatic: a 37.5 percent increase on average for women and 22.7 percent for men.
The study doesn’t include the federal premium subsidies offered to those earning between 100 and 400 percent of the federal poverty limit, but Mr. Coleman points out that not everyone in that bracket qualifies because their premiums must exceed a certain percentage of their income
http://www.washingtontimes.com/news/2014/oct/28/obamacare-sends-health-premiums-skyrocketing-by-as/