Obamacare To Double Cost Of Insurance For Average Californian

Tyler Durden's picture




 

Last week, the state of California claimed that its version of Obamacare’s health insurance exchange would actually reduce premiums. But, as Forbes reports, the data that the executive director of California's 'exchange' released tells a different story: Obamacare, in fact, will increase individual-market premiums in California by as much as 146 percent. The exuberance that Peter Lee exclaimed over the 'savings' is a misleading comparison. He was comparing apples - the plans that Californians buy today for themselves in a robust individual market-and oranges - the highly regulated plans that small employers purchase for their workers as a group. If you're a 25 year old male non-smoker, buying insurance for yourself, the cheapest plan on Obamacare’s exchanges is the catastrophic plan, which costs an average of $184 a month; but in 2013, on eHealthInsurance.com, Forbes explains, the median cost of the five cheapest plans was only $92. In other words, for the typical 25-year-old male non-smoking Californian, Obamacare will drive premiums up by between 100 and 123 percent. The desperate spin of the PR disaster is incredible as talk of a 'rate shock' is now very prescient, "these extraordinary increases are up to 15 times faster than inflation and threaten to make health care unaffordable for hundreds of thousands of Californians."

 

 

Via Forbes,

Last week, the state of California claimed that its version of Obamacare’s health insurance exchange would actually reduce premiums. “These rates are way below the worst-case gloom-and-doom scenarios we have heard,” boasted Peter Lee, executive director of the California exchange. But the data that Lee released tells a different story: Obamacare, in fact, will increase individual-market premiums in California by as much as 146 percent.

 

...

 

“The rates submitted to Covered California for the 2014 individual market,” the state said in a press release, “ranged from two percent above to 29 percent below the 2013 average premium for small employer plans in California’s most populous regions.”

 

That’s the sentence that led to all of the triumphant commentary from the left. “This is a home run for consumers in every region of California,” exulted Peter Lee.

 

Except that Lee was making a misleading comparison. He was comparing apples—the plans that Californians buy today for themselves in a robust individual market—and oranges—the highly regulated plans that small employers purchase for their workers as a group. The difference is critical.

 

...

 

If you’re a 25 year old male non-smoker, buying insurance for yourself, the cheapest plan on Obamacare’s exchanges is the catastrophic plan, which costs an average of $184 a month.

 

... But in 2013, on eHealthInsurance.com (NASDAQ:EHTH), the median cost of the five cheapest plans was only $92.

 

In other words, for the typical 25-year-old male non-smoking Californian, Obamacare will drive premiums up by between 100 and 123 percent.

 

...

 

Obamacare’s impact on 40-year-olds is steepest in the San Francisco Bay area, especially in the counties north of San Francisco, like Marin, Napa, and Sonoma. Also hard-hit are Orange and San Diego counties.

 

 

...

 

How did Lee and his colleagues explain the sleight-of-hand they used to make it seem like they were bringing prices down, instead of up? “It is difficult to make a direct comparison of these rates to existing premiums in the commercial individual market,” Covered California explained in last week’s press release, “because in 2014, there will be new standard benefit designs under the Affordable Care Act.” That’s a polite way of saying that Obamacare’s mandates and regulations will drive up the cost of premiums in the individual market for health insurance.

 

But rather than acknowledge that truth, the agency decided to ignore it completely, instead comparing Obamacare-based insurance to a completely different type of insurance product, that bears no relevance to the actual costs that actual Californians face when they shop for coverage today. Peter Lee calls it a “home run.” It’s more like hitting into a triple play.

 

...

 

So, Forbes' Avik Roy summarizes:

Supporters of Obamacare justified passage of the law because one insurer in California raised rates on some people by as much as 39 percent. But Obamacare itself more than doubles the cost of insurance on the individual market.

 

I can understand why Democrats in California would want to mislead the public on this point.

 

But journalists have a professional responsibility to check out the facts for themselves.

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Sun, 06/02/2013 - 22:23 | 3619327 Magnum
Magnum's picture

How many millions of Californians work for the govt and get free insurance anyway?

Sun, 06/02/2013 - 22:25 | 3619334 economics9698
economics9698's picture

Obamacare was designed to create a health insurance oligopoly (5 companies will dominate the market) and put the peasants on Obamacare.  The peasants will get death panels and rationing. 

The insurance oligopolies will rule the rest of the market share as the fascist dictates from Washington.

 

What the fuck else is there to say?

Sun, 06/02/2013 - 22:46 | 3619387 dryam
dryam's picture

BTW, it's called The Affordable Care Act.  That's because if you say it over and over enough times you can hypnotize yourself into thinking white is black, and down is up.

Sun, 06/02/2013 - 22:57 | 3619415 Surly Bear
Surly Bear's picture

I worked for Kaiser Permanante in the mid-90s. Back then, we covered over 10 million lives and the cost for a person under age 25 with no pre-existing conditions was $59 a month. Those were the days...meh.

 

EDIT: I need to learn to spell.

Sun, 06/02/2013 - 23:22 | 3619470 kareninca
kareninca's picture

Ah, and Kaiser Northern California does a fine job in meeting health guidelines for its patients!

I know this because the last time I went for my female exam, the nurse (who is from a developing nation) took my blood pressure and it was REALLY high (due to the SSRIs prescribed by my Kaiser psychiatrist, who is also from a developing nation).  So the nurse said, "let me take it another way!"  She had me hold my arm up nearly over my head, and took the measure again.  Voila!!  It was an acceptable measurement!

I mentioned this to the gynecologist (who is one of the few who is not from overseas), and she was kind of embarassed.  But she didn't fix any of the readings to reflect reality.

Win, Kaiser!!!

Sun, 06/02/2013 - 23:58 | 3619538 Bear
Bear's picture

Exact same thing happen to me at Kaiser in Hawaii. I think that must be standard procedure. You are infirmed until you have to use the services, then you're just fine

Mon, 06/03/2013 - 01:16 | 3619616 mophead
mophead's picture

None of you guys get it, it's transitory.

Mon, 06/03/2013 - 01:24 | 3619622 12ToothAssassin
12ToothAssassin's picture

We have to pass the bill so you can see whats in it - https://www.youtube.com/watch?v=hV-05TLiiLU

Mon, 06/03/2013 - 03:03 | 3619670 Supernova Born
Supernova Born's picture

Third world skill-level workers (even if EVERY adult worked) can have free first world medicine?

Not possible.

Mon, 06/03/2013 - 09:04 | 3619917 Joe Davola
Joe Davola's picture

25 y/o non-smoking male

Try to find one of them in large portions of northern California or other locales.  Or is medicinal smoking not considered smoking.

Mon, 06/03/2013 - 11:01 | 3620207 Bananamerican
Bananamerican's picture

during the housing pop, i imagined millions saying "fuck it" and not sending in mortgage payments...

I'm getting a similar vibe here...Suppose they threw a fascist health care system and nobody came?

all i see is a CLUSTERFUCK coming down the tracks...

Mon, 06/03/2013 - 05:37 | 3619726 mess nonster
mess nonster's picture

And the lies and corruption keep spreading- scary stuff!

Mon, 06/03/2013 - 05:37 | 3619725 Offthebeach
Offthebeach's picture

A good, old school BP exam could take a hour. Sitting , standing, left arm up, after a bit of exercise....

And then it would be nice to have it done multiple tines , over a few months.

Mon, 06/03/2013 - 05:55 | 3619734 merizobeach
merizobeach's picture

"But she didn't fix any of the readings to reflect reality."

And you didn't insist?  Are you a stupid bitch?  Your negative association of people from overseas origin with incompetence or corruption, along with the implicit racism of your tone, suggest that you might be a bitch.  Accepting medical care and, especially, drug presciptions from people whom you condescend with your worldview seems possibly pretty stupid.  Btw, why are you on SSRIs in the first place?  Might it be because you're an unstable, crazy, stupid bitch?  Take your stank twat and stank twat stories of what a sheeple you are, and GTFO of here.

Mon, 06/03/2013 - 08:23 | 3619832 RafterManFMJ
RafterManFMJ's picture

Tell us how you really feel!

She should count herself lucky the nurse didnt try to put a leech on her cooter. It's common overseas.

Wed, 06/05/2013 - 12:36 | 3626587 merizobeach
merizobeach's picture

"Tell us how you really feel!"

Good laugh from you, thanks.  I had a strong suspicion that last comment would net me a few more reds than greens, but, hey, I still think MDB is good comedy, too.

Sun, 06/02/2013 - 23:08 | 3619440 Son of Loki
Son of Loki's picture

My dad's policy started rising directly after this law was passed. He complained to the insurer but they repeatedly explained it was to cover costs of Obamacare. It has risen 48% since that time just a couple of years ago.

 

He may have to drop his insurane altogether soon. Can't afford it.

Mon, 06/03/2013 - 00:17 | 3619558 EscapingProgress
EscapingProgress's picture

Are you saying that the Affordable Care Act had nothing to do with making healthcare affordable? God damn you George Bush!

Mon, 06/03/2013 - 00:25 | 3619578 macholatte
macholatte's picture

 

Let's get real.......

If my insurance premium went from $100/month to $200/month I could give a shit. What has already happened is that it went from $800/month to over $1400/month, the deductable went up, the co-pay went up, the drug benefit went up and so on and so forth.

Mon, 06/03/2013 - 05:54 | 3619739 merizobeach
merizobeach's picture

I'm sorry, this is nothing too personal, but all can hear in this thread so far is, "I live in the USuckAss--WAAHHH!!  I live in the--WAAAHHH!!!"

It's a big world, folks; if you care to save yourselves, get out of its fascist shitholes.  Or don't, but the complaining is fucking ridiculous when there are so many other options.

Mon, 06/03/2013 - 07:34 | 3619783 Acet
Acet's picture

Most people don't have what it takes to emigrate.

As an emigrant myself, I can understand that: it's one of the biggest changes one can make in one's life and it's not something for everybody.

Thus, it's not a solution.

Wed, 06/05/2013 - 12:41 | 3626603 merizobeach
merizobeach's picture

"Most people don't have what it takes to emigrate."

And thank goodness because if all those hordes of sheeple did suddenly head for the exit, all of us in the rest of the world would be flooded with shit.

"Thus, it's not a solution."

But it is for me.  Bottom line.

Mon, 06/03/2013 - 08:06 | 3619820 Long-John-Silver
Long-John-Silver's picture

The IRS follows American Citizens demanding they pay taxes everywhere they go in this world. This requires the American Citizen to not only leave his/her country but to renounce his/her citizenship as well. Immigrants that come to the USA not only keep their citizenship to their country of birth and can attain dual citizenship in the USA. This allows the  Immigrant to come to the USA, take it's wealth, and return to his/her country of origin and live a very good life.

Wed, 06/05/2013 - 12:44 | 3626615 merizobeach
merizobeach's picture

Your options are not so narrow as you seem to imply, friend, nor are the cards stacked against you.  The world is a pretty free place, actually, when you make the choice to set yourself free.

Mon, 06/03/2013 - 09:15 | 3619939 Ace Ventura
Ace Ventura's picture

In other words....when tyranny begins to metastasize in your homeland....run. Then when you get to another homeland and tyranny begins to metastasize there as well....run again. And so on.

Running is not an option for alot of people. Soon enough, the complaining will shift to action. In the end, it will be up to each individual to decide whether to stay, fight, and possibly die....or kneel before whatever shape this growing tyranny takes when it decides the time is ripe for hardcore squashing of all dissent.

Wed, 06/05/2013 - 12:47 | 3626630 merizobeach
merizobeach's picture

Basically, I suppose I agree.  Moving, though stressful and inconvenient, seems, to me, a relatively small cost compared to living under tyranny.

Mon, 06/03/2013 - 08:30 | 3619843 gatorengineer
gatorengineer's picture

I would like to meet the person paying $200 a month for healthcare, and see what they are getting

My Employer is supposedly paying 15k for my family plan (ha ha).  For my portion of the plan I am paying for the plan about $900 a month... not so bad... right?

800 dollar per person deductable...... 80 / 20 split on reasonable and customary after that.  $40 a month per script.  No Vision, No dental etc....

This is what a 25K a year family plan looks like now.  (Yes I know my employer is lying).  I cant wait to see what happens to next years premiums.

 

 

 

Mon, 06/03/2013 - 03:59 | 3619686 A Nanny Moose
A Nanny Moose's picture

Government solutions...the gift that keeps on giving.

Sun, 06/02/2013 - 22:49 | 3619406 HardAssets
HardAssets's picture

Its NAZIcare with similiar final objectives ('solutions')

Sun, 06/02/2013 - 23:04 | 3619434 Bear
Bear's picture

NaziCare ... Keep it cheap, Kill 'em soon

Sun, 06/02/2013 - 22:49 | 3619407 Bear
Bear's picture

No ... Obamacare was designed to create so much havoc that the sheeple will beg (on their knees) for .gov to create a savior-single-payer system

Mon, 06/03/2013 - 02:07 | 3619648 The Heart
The Heart's picture

"No ... Obamacare was designed to create so much havoc that the sheeple will beg (on their knees) for .gov to create a savior-single-payer system"

Hello bear.

Yes, that darn Hegelian dialectic is a son-of-a-gun, eh!

CHANGE!!!

Stupid is as stupid does.

Mon, 06/03/2013 - 04:05 | 3619688 CutOut
CutOut's picture

HEART, we are still waiting for an explanation but you refuse to respond. Why ?

ZH readers are curious as to why HEART intentionally posts disinfo such as Boston bombing fake injuries / fake blood / crisis actors garbage which is 100% DISINFORMATION.

http://www.zerohedge.com/search/user_comments?name=the+heart
Boston bomb disinfo reposted again by heart #3616167

I have screen caps of your Boston bombing fake injuries / fake blood / crisis actors disinfo posts.

......................................................

ZH is being targeted by FedGov spambots & human operatives saturating the comment sections with garbage and disinformation in addition to down voting certain posters.

They are not harmless trolls, they are professional operatives attempting to undermine and discredit ZH via multi nic sock puppets.

Attacking this post by constant down voting speaks for itself: the shills have exposed themselves.
Case closed.

Mon, 06/03/2013 - 09:53 | 3620013 IrritableBowels
IrritableBowels's picture

How do you KNOW the hoax theory is fake? And I'm no shill. 

Actually, how the fuck do you explain this: http://www.youtube.com/watch?v=Q8yEat5_8xI&bpctr=1370269387

Mon, 06/03/2013 - 04:00 | 3619687 A Nanny Moose
A Nanny Moose's picture

If you think it's expensive now, just wait till it's free.

Sun, 06/02/2013 - 23:12 | 3619450 TheReplacement
TheReplacement's picture

Maybe they will ration and death panel the peasants, the ones who voted for free stuff, to death.  Then we can liquidate the criminals and traitors and get back to what America was meant to be instead of the 'Merica crap.

Sun, 06/02/2013 - 23:21 | 3619472 JPM Hater001
JPM Hater001's picture

"Obamacare was designed to create a health insurance oligopoly (5 companies will dominate the market) and put the peasants on Obamacare.  The peasants will get death panels and rationing. "

No

Obamacare was created to collapse the system...

Sun, 06/02/2013 - 23:43 | 3619514 Mr. Magoo
Mr. Magoo's picture

Probably written by Cloward and Piven

Mon, 06/03/2013 - 09:28 | 3619960 Zymurguy
Zymurguy's picture

Yes, everything with their stink on it is designed to overwhelm the status quo in a destructive manner.

They learned that blowing things up would never work, but imploding them will.

They successfully bankrupt New York many years ago.  Successful test completed... now onto bigger fish.

Mon, 06/03/2013 - 00:35 | 3619587 you enjoy myself
you enjoy myself's picture

single payer was the eventual goal, yes, but i don't think they meant to get there by demonstrating breathtaking incompetence.  they were genuinely hoping a fascist system could be installed where some private companies "competed" under govt mandates that dictated almost every aspect of the business (witness the cap on marketing expenditures), and that the system would at least be somewhat stable.  eventually the argument would be made that the insurance companies were needless middlemen extracting their needless tithe.  since every insurance company had to operate under regulations that micromanaged everything, there would be no differentiation amongst the insurers - they would become utlities.   and so, hey voters, why don't we save you an amount equivalent to the entire industry's profits and excess salaries, and just do it ourselves?  after all, every single business practice is codified into law so innovative private sector thinking has no benefit.

but what you're seeing now, and will really see starting in Oct (when the state exchanges are all supposed to go live) is incompetence on such a massive scale that plans for single payer are now empty dreams.   even most Obamabots would rather go back to a semi-free market than buy the argument that Obamacare only failed the because govt didn't have 100% control.

obama, reid, pelosi, and baucus genuinely believed this monstrosity could live long enough to bridge the gap between fascistic and communist control.

Mon, 06/03/2013 - 01:37 | 3619632 sessinpo
sessinpo's picture

JPM Hater001     "No

Obamacare was created to collapse the system..."

 

Comment:

I agree with you with the notiion that liberalism collapses the system. Obamacare and other methods are just the tools. And we must keep in mind that it isn't just democrats that are the liberals. Republicans have had several opportunities to defund Obamacare but haven't. If it weren't Obamacare, it would be some other liberal tool that liberals would use.

Obamacare is a policy. It is the ideology that is the problem.

Mon, 06/03/2013 - 17:20 | 3621497 IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

I down voted you b/c like a lot of the other dupes on here, you are associating what is being done here as "liberalism".  It is most certainly not.  It is "corporatism" or more correctly fascism (as Mussolini most correctly described it) - a merger of corporate and state power.  A bunch of politically connected middlemen (FIRE sector) using their friends in government to extract every last dime out of the peons.  But oh no, there are still so many here who still see in terms of left/right blue/red as if Mitt the shit wouldn't have done something with the exact same effect under a different pretense.  You did at least notice "Republicans have had several opportunities to defund Obamacare but haven't" - hmm wonder why.  Could it be that the money gets extracted to their very same friends in the FIRE sector but allows "the other guy" to be a target of most of peons' ire.  Convenient, isn't it?

You have half a clue.  Just use your brain a little more and you might get the idealogy correct.

Mon, 06/03/2013 - 00:29 | 3619584 Fail2Deliver
Fail2Deliver's picture

YES WE CAN! ....pay more for health insurance...YES WE CAN!

 

Mon, 06/03/2013 - 09:08 | 3619924 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Yes We Can.  But Lets Not.

I rest my case.

Mon, 06/03/2013 - 01:03 | 3619605 Ignatius
Ignatius's picture

"What the fuck else is there to say?"

The American Medical Mafia....

At a point all this corruption is just gonna blow up in our faces.

Sun, 06/02/2013 - 22:57 | 3619353 ACP
ACP's picture

I just had a vision of a 2,000 pound mosquito sucking the life out of a 100 pound human.

 

Sun, 06/02/2013 - 23:22 | 3619476 JPM Hater001
JPM Hater001's picture

Did someone mention my wife...

I'm gonna pay for this comment some day...

Mon, 06/03/2013 - 00:16 | 3619562 olto
olto's picture

Hey, ACP

Where can you find a hundred pound adult in this country?

Maybe, a twenty thousand pound mosquito and a thousand pound human is possible

BTW, is this insurance mandatory?

Mon, 06/03/2013 - 05:42 | 3619729 lakecity55
lakecity55's picture

You will soon find plenty of 100# people at Camp FEMA.

Sun, 06/02/2013 - 22:45 | 3619396 Dingleberry
Dingleberry's picture

So enightened, liberal Californians are going to be bent over and pounded (without lube) by this plan they supported with their votes?

There is a God.

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