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AP: Premiums Go Up Under Obama Plan!

From, of all places, the Associated Press:

FACT CHECK: Premiums would rise under Obama plan

By Ricardo Alonso-zaldivar, Associated Press Writer

March 17, 2010

WASHINGTON – Buyers, beware: President Barack Obama says his health care overhaul will lower premiums by double digits, but check the fine print.

Premiums are likely to keep going up even if the health care bill passes, experts say. If cost controls work as advertised, annual increases would level off with time. But don’t look for a rollback. Instead, the main reason premiums would be more affordable is that new government tax credits would help cover the cost for millions of people.

Listening to Obama pitch his plan, you might not realize that’s how it works.

Is that "how it works"? What “cost controls” are going to help when insurance companies have to shell out to people who only buy coverage once they need it?

And who will get these “tax credits,” but ‘the poor’ and the rest of the usual suspects, who are already eligible for Medicaid?

Visiting a Cleveland suburb this week, the president described how individuals and small businesses will be able to buy coverage in a new kind of health insurance marketplace, gaining the same strength in numbers that federal employees have.

"You’ll be able to buy in, or a small business will be able to buy into this pool," Obama said. "And that will lower rates, it’s estimated, by up to 14 to 20 percent over what you’re currently getting. That’s money out of pocket."

We are supposed to believe that the government will be able to provide insurance at a cheaper rate than the private sector? When has that ever happened before with anything the government has produced?

Besides, the people in this pool will be people who for all extents and purposes have been rejected or priced-out of private insurance. How on earth could their collective rates be lower?

Obama asked his audience for a show of hands from people with employer-provided coverage, what most Americans have.

"Your employer, it’s estimated, would see premiums fall by as much as 3,000 percent," said the president, "which means they could give you a raise."

A White House press spokesman later said the president misspoke; he had meant to say annual premiums would drop by $3,000

How could Mr. Obama be expected to know the difference between these two statements? He’s never had to meet a payroll. In fact, he’s probably never had to buy insurance, having been in the public sector all of his ‘adult’ life.

"There’s no question premiums are still going to keep going up," said Larry Levitt of the Kaiser Family Foundation, a research clearinghouse on the health care system. "There are pieces of reform that will hopefully keep them from going up as fast. But it would be miraculous if premiums actually went down relative to where they are today."

The premium reduction of 14 percent to 20 percent that Obama cites would apply only to a portion of the people buying coverage on their own — those who decide they want to keep the skimpier kinds of policies available today.

Their costs would go down because more young people would be joining the risk pool and because insurance company overhead costs would be lower in the more efficient system Obama wants to create.

And this is all based on the assumption that more people will buy insurance rather than face the new mandated fine (tax) for being uninsured. But we question that assumption.

Instead, we suspect once insurance companies are required to accept pre-conditions more people will simply drop their insurance until they have a serious accident or get diagnosed with a major illness that requires them to buy it again.

So there will be fewer people ‘in the pool.’ Fewer and sicker people.

Still, it’s quite amazing that the Associated Press would even publish such a headline and article. Though, one has to wonder why the AP waited until it was effectively too late for the American people to do anything to apprise us of this minor detail?

After all, supposedly the whole purpose of ‘healthcare reform’ in the first place was to lower costs.

So if that isn’t going to happen then why are the Democrats turning the Constitution on its head to ram it through?

Of course, we know why.

This article was posted by Steve on Wednesday, March 17th, 2010. Comments are currently closed.

6 Responses to “AP: Premiums Go Up Under Obama Plan!”

  1. Proof says:

    “Your employer, it’s estimated, would see premiums fall by as much as 3,000 percent,”

    Because, Joe Biden should have to share the “King of Stupid” crown!

  2. Right of the People says:

    Other shocking AP headlines: Water is wet! Night is Dark! Snow is cold! Drooling Barney is a flamer! The President is an Ass Clown!

  3. proreason says:

    Let’s cipher.

    1. Pre-conditions must be covered. Young people will wait till they get sick. All other premiums will rise.
    2. $500B pulled from Medicare. Reimbursements drop. Docs charge everyone else more. Premiums will rise.
    3. Up to 50% of Docs quit in disgust. Supply is reduced. Premiums will rise.
    4. 30 million new insured. Demand increases. Premiums will rise.
    5. Medical equipment is taxed. Prices will increase. Premiums will rise.
    6. Low deductable plans are eliminated. Premiums will rise.
    7. Lawyers are incented by ObamaScare to sue. Premiums will rise.
    8. Inflation is about to kick in big-time. Premiums will rise.
    9. Big Gov will control coverage. More conditions will be covered. Premiums will rise.
    10. Everybody subsized Union cadillac plans. All other premiums will rise.
    11. Florida seniors are subsized. All other premiums will rise.
    12. Louisiana Purchase, Cornhusker Kickback, other bribes. Premiums will rise
    13. Employers are taxed. Employee percentage of premiums will rise dramatically

    Average premiums will double within 3 years, possibly sooner.

    The scam is designed to put Health Insurers out of business within 3 to 5 years. At that point, everyone will be forced to pay through the nose to the government.

    It’s the destruction of the country. Pure and simple.

    Hope and Change.

  4. GetBackJack says:

    Less medical access …. helluva lot more costs.

  5. ptat says:

    The crowd actually cheered when our President said “premiums would go down 3,000%” How on earth have we fallen so low?! He should have been laughed out of office then and there! And now the “earthquake in hawaii”? What a spectacular imbecile, guiding our country through the mine fields of the world…surely destruction is imminent!

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