UNEXPECTEDLY: The Inconvenient Truth About Obamacare’s Premium Spiral.
The biggest reason for Obamacare’s rate hikes? Two of its most popular provisions, guaranteed issue and community rating. These are the technical terms for Obamacare’s ban on insurance companies denying coverage or charging people who are sick more.
The McKinsey report found that in Georgia, these mandates added between 44 and 52 percent to premiums. In Ohio, they were responsible for 41 to 50 percent of the hikes — and in Pennsylvania, as much as 62 percent. In Tennessee, guaranteed issue and community rating accounted for between 73 and 76 percent of premium increases.
This shouldn’t come as a surprise. A study by Milliman, a consultancy, in 2013 predicted that Obamacare’s guaranteed issue and community rating rules would sharply increase premiums.
If you’re going to charge younger, healthier people more like older, sicker people, and force insurers to sell “insurance” to people who are already sick, then premiums are going to go WAY up — which many of us warned back in 2009, 2010.