The side effects of ObamaCare.
From Big Government.
Obama promised that Obamacare would cut family health insurance premiums by $2,500 by the end of the first term–but instead they have risen by $3,000, according to a new Kaiser Family Foundation study cited by Investor’s Business Daily.
The cost of health insurance today is more than 50% higher than Obama promised it would be–and the costs are expected to continue to rise as Obamacare is impemented.
John Merline of Investor’s Business Daily notes the rising costs specifically contradict a campaign promise Obama reiterated several times, including in debates with Sen. John McCain (R-AZ) and at events along the 2008 campaign trail.
Furthermore, the data show that the rise in family premium costs, largely attributable to the costs of complying with Obamacare, has outpaced the rise in costs under eight years in the previous four years of George W. Bush.
Health insurance companies have already been required to provide additional coverage for so-called “children” up to age 26, among other changes. That coverage is described by Obama as “free,” but in fact the costs are borne by other patients.
Obamacare also does nothing to change the underlying incentives driving the rising costs of health care, and in fact makes them worse by adding mandates and reducing patients’ choices.
Over the next four years, if Obama is re-elected and Obamacare is not repealed, the federal government will have to apply cost controls, resulting in the rationing of health care by bureaucrats and/or hospitals.
That is why the Obama administration placed such a heavy emphasis on the Independent Payments Advisory Board–and why vice presidential candidate Rep. Paul Ryan (R-WI) has spent so much time attacking it.
Regardless, the central promise of Obamacare–that it would “bend the cost curve down,” not just overall but on a family level–has been broken, as critics said it would be.
The question “are you better off than you were four years ago” is answered with a clear “no” for American families when it comes to health insurance prices–along with rising gas prices and declining household wealth. Four more years will likely be even worse.
More surprises in store for employers:
A president who says “I haven’t raised taxes” has authorized his Internal Revenue Service issue a “final rule” that will illegally tax some 12 million individuals, plus large employers, in as many as 40 states beginning in 2014. Oklahoma’s attorney general has asked a federal court to block this rule. Members of Congress have introduced legislation in both the House and Senate to to quash it.
At first glance, it might not seem that the IRS is up to anything nefarious. The rule in question concerns the Patient Protection and Affordable Care Act’s tax credits, not the law’s tax increases. The tax credits are intended to offset the cost of insurance premiums for low- and middle-income workers.
For many Americans, however, those tax credits are like an anchor disguised as a life vest. The mere fact that a taxpayer is eligible for a tax credit can trigger tax liabilities against both the taxpayer (under the act’s “individual mandate”) and her employer (under the “employer mandate”). In 2016, these tax credits will trigger a tax of $2,085 on many families of four earning as little as $24,000. An employer with 100 workers could face a tax of $140,000 if even one of his workers is eligible for a tax credit.
So it is significant that the PPACA explicitly and repeatedly restricts eligibility for tax credits to people who purchase health insurance “through an Exchange [i.e., government agency] established by the state” in which they live. That means that under the statute Congress enacted, a state can block those hefty taxes simply by declining to create an exchange. The PPACA directs the federal government to create an exchange in any state that declines to create one itself…
It is here that the IRS has gone rogue. The agency has announced that, despite the clear statutory language restricting tax credits to exchanges established by states, it will issue tax credits through federal exchanges. One can see why Oklahoma and the rest might be upset: By offering tax credits in states that opt not to create exchanges, the IRS is imposing taxes where Congress did not authorize them. This IRS rule will tax those 12 million low- and middle-income Americans, including 250,000 Oklahomans, contrary to the express language of the PPACA.
- ObamaCare Drives Up Cost of Health Insurance Premiums (redalexandriava.com)
- O Promised To Cut Family Health Insurance Premiums $2,500 By End Of First Term: Um, They’ve Gone Up $3,000 – What A Shock! (mikesright.wordpress.com)
- OOPSY! POST-OBAMACARE HEALTH INSURANCE PREMIUMS RISE DRAMATICALLY: John Merline over at Investor… (pjmedia.com)