It’s the reenrollment period for the Obamacare plans. Estimates before Obamacare was created on its effects on costs were all over the map. Some pundits thought costs would come down; some pundits but costs would go up.
The early returns are in, but as might be expected, the findings are all over the map. They range from an article in Bloomberg news that predicted they would rise 6% in 2015. An estimate published in the Washington Post said the average would go up by 10%. A report in the Washington Times estimated that for younger people in the age range of 23 to 30, the cost might increase up to 78%.
One note of explanation: the highest amounts are based on the actual cost of the insurance. They don’t include government subsidies, which are applied to people earning less than 400% of the Federal Poverty Level.
Another issue that pundits debate is how much the initial charges levied by insurance companies are from them lowballing their prices to gain market share.
It’s probably too soon to tell exactly what’s going to happen with Obamacare costs. However I think it’s safe to the say that the pundits predicting Obamacare would bring down the cost of health insurance were wrong. There are lots of politics left to play out in this journey. A Supreme Court decision on the legality of federal health insurance plans and its subsidies is pending. But the bigger issue is that we still have the same dysfunctional healthcare system we had before and after Obamacare.
Only when we are willing to disrupt the status quo will we even begin to achieve value for the healthcare dollar that the rest of the world enjoys. Obamacare just does not come close to achieving this.