If you thought your health insurance premiums would be lower after ObamaCare, you might be in for a big shock. More and more evidence is surfacing that the real prices for health plans will go up in most states once the insurance exchanges open and people start looking for “affordable” health care.
So, why are ObamaCare rates so high after all the promises President Obama has made to the American public? Its simple really: insuring more people costs more money, especially when increasing the number of unhealthy people who might not have had insurance before.
Admirably, the Affordable Care Act strives to get everyone on insurance, even those who are sick and have pre-existing conditions. But no matter how the President has sugar coated ObamaCare, the reality is that the massive bureaucracy being created is going to cost all of us more money. See the chart below for a state by state comparison of the increases health care insurance premiums we will soon be facing:
One of thing that is very scary about the ACA is that it depends on lots of young people signing up for health insurance. You see, they are the ones who are the cheapest to insure because they are mostly healthy and put little strain on the system. Insurers make money off of young people because they usually pay more than they get back. That is also why many young people historically decide not to bother with insurance at all – they just don’t feel they need it and will take the risk.
If millions of 20 to 30 year olds don’t sign up for ObamaCare and opt to just take the small IRS penalty the first year, that will mean even higher costs for everyone because only the most needy and costly are the ones being insured. ObamaCare could crumble and fail if only middle age and older people buy insurance.