Californians Not Enjoying Their First Taste of Obamacare
According to the LA Times, Blue Shield of California and Aetna Inc recently announced premium “increases that average more than 11 percent for about 47,000 individual and small-business policyholders.” California health bureaucrats are understandably unhappy and blame the insurance companies for the new rates.But their anger is misdirected. As the article states, many of these increases have been driven by the need to recoup costs associated with the rollout of Obamacare. They are a rational response to rising health care costs and to a law that forces insurers take on more expensive patients who are high risk or have pre-existing conditions.This is what happens when a plan expands coverage without reducing costs. Blue California is now getting the first taste of the financial burdens Obamacare will create in coming years—and they aren’t enjoying the experience.