Deceptive Gov’t Praises Obamacare Subsidies, While Higher Costs Shift to Americans in Fees and Taxes
Health insurance customers in many states will see major increases in 2016—some by double-digit percentages—according to a new report by the Kaiser Family Foundation [1]. And what’s the advice many are receiving to combat these increases? Just take advantage of Obamacare subsidies, the Advanced Premium Tax Credit, to reduce the premiums.
This line of thinking is completely backward.
Individuals and families who are facing these health insurance premium increases next year—a direct result of the Affordable Care Act—are being told to check out the “savings” by taking advantage of the subsidies offered through Obamacare. This is a completely upside-down way of considering health care costs, because while the premium payment might be a bit lower in the short term, we will all pay for these subsidies with higher taxes and fees in the long run. This is another deception by the government—that Obamacare subsidies are “free money,” when in actuality, it costs all of us more in the end.
According to Kaiser [1], which analyzed premiums in 13 states and Washington, D.C., costs will increase in several states—and at alarming rates. In Minnesota, for example, Twin Cities Business reported [2] that those who purchase individual or family health plans via MNsure, Minnesota’s state health exchange, or directly from insurers, will see their premiums rise between 14 and 49 percent next year, an average of 28.5 percent—the highest increase of any state.
Given that MNsure has one of the lowest rates of exchange enrollment, resulting in a lack of enrollment dollars needed by the exchange for operating expenses, Minnesota’s sharp premium increases may be a result of that low enrollment rate, or alternatively, an attempt to drive people and their dollars into MNsure for relief from the increases.
But even if the subsidies were the answer—which they are not—a large portion of those in need of health care coverage aren’t even eligible. For example, KARE-11 TV in Minneapolis/St. Paul [3] recently profiled a local freelance writer who pays $700 for Blue Cross Blue Shield coverage for himself and his wife. Because he is self-employed, the writer does not have company health care available. His deductible is $4,000—a threshold the couple must cross in out-of-pocket spending before the 80/20 co-pay begins.
With the 2016 increases, this writer will pay a $1,000-plus monthly premium next year if he stays with the same policy—meaning this couple will spend more on health insurance than on their mortgage. And this particular writer and his wife don’t qualify for advance premium tax credits—along with about 40 percent of the population.
One reason premiums are rising, reported [2] Twin Cities Business, is that “plan providers have miscalculated the health levels among those buying plans via MNsure or directly from insurers. They have turned out to be 'sicker’ and ‘more expensive’ than they anticipated”—something I predicted when Obamacare was first introduced and became law more than five years ago. In order for government health care to survive, the young and healthy must enroll to keep it alive—and that is not happening. Therefore, costs will continue to increase.
Twila Brase is president and co-founder of Citizens’ Council for Health Freedom (CCHF,
www.cchfreedom.org [4]), a Minnesota-based national organization dedicated to preserving patient-centered health care and protecting patient and privacy rights. Celebrating its 20th year, CCHF exists to protect health care choices and patient privacy. Brase, a registered nurse, has been called one of the “100 Most Powerful People in Health Care” and one of “Minnesota’s 100 Most Influential Health Care Leaders.”
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