HHS Secretary Kathleen Sebelius admitted yesterday that Obamacare will raise the price of insurance premiums for some Americans. Unsurprisingly, young people will get the shaft, especially young men. WSJ:
The secretary’s remarks are among the first direct statements from federal officials that people who have skimpy health plans right now could face higher premiums for plans that are more generous. She noted that the law requires plans to provide better benefits and treat all customers equally regardless of their medical claims….
Ms. Sebelius added that those customers currently pay more for their health care if their plans have high out-of-pocket costs, high deductibles or exclude particular types of coverage, such as mental health treatment. She also said that some men and younger customers could see their rates increase while women and older customers could see their rates drop because the law restricts insurers’ ability to set rates based on age and gender.
In that sense, Obamacare seems less like the wave of the future and more like the latest effort by Boomers and their allies to prosper at the expense of the next generation. The War on the Young rolls on.
Meanwhile, the Washington Post reports on a shocking new study by the Society of Actuaries that finds that the ACA “will raise claims costs nationally by an average of 32 percent per person in the individual health insurance market by 2017.” Though some have said the findings are exaggerated, the chances are high that there will be some substantial increase in claims costs. And since medical claim costs are the biggest determinant of premiums, many expect these increases to be passed onto the consumer.