As Predicted, Obamacare Is Absolutely Killing The Middle Class

Tyler Durden's picture

Submitted by Michael Snyder via The Economic Collapse blog,

The critics of Obamacare have been proven right.  The Obama administration promised that health insurance premiums would go down.  Instead, they have absolutely skyrocketed.  The Obama administration promised that Obamacare would not kill jobs.  Instead, firms are hiring fewer workers because of suffocating health care costs.  As you will see below, even the Federal Reserve is admitting this.  The Obama administration also promised that the big health insurance companies would love the new Obamacare plans and would eagerly compete with one another to win customers in the new health insurance marketplaces.  Instead, many of the big health insurance companies are now dropping Obamacare plans altogether.

We witnessed the latest stunning example of this phenomenon just a few days ago.  It turns out that Aetna has been losing hundreds of millions of dollars on plans sold through the health exchanges, and now they plan to pull out of the program almost entirely

Earlier this week, Aetna, which covers about 900,000 people through the health exchanges created under Obamacare, announced that it would dramatically reduce its presence those exchanges. Instead of expanding into five new states this year, as the insurer had previously planned, the company said that it would drop out of 11 of the 15 states in which it currently sells under the law.

 

Aetna’s decision follows similar moves from other insurers: UnitedHealth announced in April that it would cease selling plans on most exchanges. Shortly after, Humana pulled out of two states, Virginia and Alabama. More than a dozen of the nonprofit health insurance cooperatives set up under the law—health insurance carriers created using government-back loans in order to spur competition—have failed entirely. While some insurers are entering the exchanges, even more are leaving.

Another one of “the big five”, UnitedHealth, is going to lose more than half a billion dollars on Obamacare plans.  So just a few months ago they also announced that they would be dramatically scaling back their participation in the program.

Because of the ridiculous costs, health insurance companies are either going to have to abandon the exchanges completely or they will have to raise rates substantially.

Needless to say, the people that are going to ultimately feel the pain from all of this are consumers

Customers who are now forced to obtain insurance or pay a hefty fine that grows more costly over time are being left in a difficult position. Americans are essentially stuck between a rock and hard place, either losing coverage entirely, or having to cough up money for a plan they can’t afford.

 

Something has to give,” said Larry Levitt, a healthcare law expert at the Kaiser Family Foundation. “Either insurers will drop out or insurers will raise premiums.

On the low end of the spectrum, tens of millions of poor Americans benefit from government programs that provide health care at little or no cost.

On the other end of the spectrum, the very wealthy can afford to pay the ridiculously high health insurance premiums that we are seeing under Obamacare.

So what this means is that the people that are being hurt the most by Obamacare are those that belong to the middle class.

As I mentioned above, employers are now hiring less workers because of Obamacare, and that is very bad news for the middle class.  One recent study conducted by the Federal Reserve Bank of New York discovered that nearly one out of every five firms is “employing fewer workers” because of this insidious law

According to a new survey by the Federal Reserve Bank of New York, 20.9% of manufacturing firms in the state said they were employing fewer workers because of the Affordable Care Act, the healthcare law known as Obamacare, while 16.8% of respondents in the service sector said the same.

And middle class Americans that have to pay for their own health insurance are being hit with much higher bills these days.  According to one recent study, it is being projected that the average Obamacare premium will go up 24 percent in 2016…

Now, courtesy of a new study by independent analyst Charles Gaba – who has crunched the numbers for insurers participating in the ACA exchanges in all 50 states – we can also calculate what the average Obamacare premium increase across the entire US will be: using proposed and approved rate increase requests, the average Obamacare premium is expected to surge by a whopping 24% this year.

Even NBC News, which is about as pro-Obama as you can get, is reporting on the crippling premium increases that are devastating the middle class…

Millions of people who pay the full cost of their health insurance will face the sting of rising premiums next year, with no financial help from government subsidies.

 

Renewal notices bearing the bad news will go out this fall, just as the presidential election is in the home stretch.

 

“I don’t know if I could swallow another 30 or 40 percent without severely cutting into other things I’m trying to do, like retirement savings or reducing debt,” said Bob Byrnes, of Blaine, Minnesota, a Twin Cities suburb. His monthly premium of $524 is already about 50 percent more than he was paying in 2015, and he has a higher deductible.

All over the nation people are getting hit like this.

Personally, my health insurance company wanted to nearly double the rate I was paying when Obamacare fully kicked in.  So I searched around and found another plan that was only about a 30 percent increase, but at least it wasn’t nearly double what I had been paying before.

But when the time came to renew that plan, they wanted to jump my premium up another 50 percent per month.

Those of us that are in the middle are being crushed by Obamacare.  We aren’t poor enough to qualify for government assistance, and we aren’t wealthy enough for these ridiculous health insurance premiums not to matter.

Just about everything that Barack Obama promised us about Obamacare has turned out to be a lie.

So where is the accountability?

This is one of the big reasons why nearly one out of every five U.S. adults lives with their parents or their grandparents these days.  Many young adults cannot afford the basics of life such as health insurance, and so they have got to find a way to cut back expenses somewhere.  If that means moving back in with Mom and Dad, that is what some of them are going to do.

I am astounded that our system of health care has become so messed up.  But this is just more evidence of how our society is falling apart in thousands of different ways, and I am not optimistic that things will be turned around any time soon.

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peddling-fiction's picture

And we are peddling fiction. <chuckle>

knukles's picture

This was to be The Centerpiece of His Presidency and Memorialized in His Officially Teeming Marxist Library. 
Guess it'll all just have to be selfies

jcaz's picture

Funny-  all my friends used to yell at me about paying a penalty for not signing up,  now they're all asking if the penalty is tax deductable.......

bamawatson's picture

penalty can be amortized if taxpayer developed testicular reduction as singular confluence of a like-kind exchange

ufos8mycow's picture

Well I hope you guys make it out of this mess OK. As for me I have a plan that's 100% paid for by the companies who hire us through our trade union hall. Zero out of pocket other than a $500 deductible. Blue Cross/Blue Shield health/full dental/vision/drug.

 

Edit: I kinda lied...they only pay 50% of our Lasik surgeries.

wee-weed up's picture

 

 

So where is the accountability?

Yep, Harry Truman had the famous, "The Buck Stops Here" sign on his presidential desk.

On Obozo's desk is a sign with a photo of Bart Simpson and it says, "I didn't do it."

To paraphrase the boxer, Larry Holmes... this incompetent bastard is not even qualified to carry Harry Truman's jock strap!

Never One Roach's picture

One problem for folks is that no health insurer will insure you if you are eligible for Obamacare even if it is not offered in your area anymore. You're fucked coming and going.

oddly, not one politician or news media is really addressing this problem except for Donald Trump.

 

Not a peep from Obama, Hillary "Brain tumor" Clinton, Piglosi, Reed, McConnell, McLame, etc.

MisterMousePotato's picture

"Many young adults cannot afford the basics of life such as health insurance ... ."

Holy fuck. Health insurance, however nice it might be to have in certain circumstances, is not a 'basic of life'. Thousands of years of human history, and health insurance only popped up in the last half century. Health insurance is no more a necessity than my internet connection, cable TV, or a gym membership.

WorkingClassMan's picture

Try getting sick in this hole of a country without it...

 

Hell...try getting sick in this country WITH it...

 

Unless you're a brown squad monster invader or a welfare sow, you are persona non grata to the scum that ru(i)ns this country...and for their feelings, you could die.

Richard Chesler's picture

Just about everything that Barack Obama promised has been a lie.

fify

Archibald Buttle's picture

yeah, right? i personally think this is designed more to encourage less work, so as to stay in the medicare pay grade, and therefore on welfare too, than to bring about single payer.

Katos's picture

"ACCOUNTABILITY "? WTF? Everything that has come out of Obamas mouth has been a lie. He has fucked Americans for 8 years, and everyone thinks he's soo wonderful??? I really don't get it. How in the hell can people be so stupid. The treason , the funding and arming of ISIS, 6.7 trillion dollars missing from The military? His hatred of Hillary Clinton, who he now says is the "most qualified person on the planrt to be president"? This guy needs to be strung up at the Hague for crimes against humanity for the millions of people he has personally pulled the trigger on. This whole group with him are scumbags, murderous monsters, who have a place in HELL waiting!

valjoux7750's picture

My blue cross blue shield costs me 60.00 dollars a month for a family of five, health dental and vision! And its a 95 5 plan not your typical 80 20. Fuck oboma and his healthcare!!!

August's picture

As a Boomer, I have escaped escaping into the welcoming arms of Medicare, leaving the rest of you slackers to subsidize me... even though I don't need it!

Take a hike, Tom Brokaw:  truly, we Boomers are the Greatest Generation!  And after us, the deluge....

Government needs you to pay taxes's picture

May you live well and die a quick, pain-free death . . . just a few days before it all goes to hell.

stacking12321's picture

that's not a nice thing to say...you want him to die *that* soon?

Archibald Buttle's picture

well put, sir. and i sincerely hope that you are healthy enough to escape the welcoming arms of the medical establishment, as it will lead, ultimately, to your demise. keep stackin' and take care of yourself.

BurningFuld's picture

Wait this can't be true Barack is a genius. He would have seen this coming. If we compile his razor sharp intellect with his years of experience as a community organizer no way this could be happening.

Handful of Dust's picture

The Country Club golf house said barrack is too busy to come to the phone right now. Maybe after another few ho's.... I mean holes.

Caledonian's picture

He was peddling horse shit. We all knew this was a looser.
Proves Mal intent. He's as guilty of treason as can be practical to prove.

WayBehind's picture

Surprise, surprise ... but the insurance companies are still making billions, so technically everything works as planned

JRobby's picture

Billions transferred from US Treasury directly to health insurers (Laugh Track Deafening!!!)

The Exchanges will all be insolvent by year end.

knukles's picture

Wait ......
You mean Big Pharma has a deal with the Treasury like the Bankers have with the Fed!?!?!?!?!?!?!
HOLY COW!

DosZap's picture

Perfect end to Obama's LEGACY.

ejmoosa's picture

Oh, the damage that Obama has done will never end...

Handful of Dust's picture

Just as GS trqansformed form an investment company into a bank so as to get the free taxpayer money, health insurance companies will be allowed to convert to bank status so they too can rape the Amercian taxpayers.

Hillary, oddly, still supports Obamacare. Her brain tumor must be pretty bad.

 

Caledonian's picture

They were insolvent from the word go. Rules were setup for failure. This is obviously the original plan for this to play out.

BeanusCountus's picture

You make a great point. Under Obamacare, insurers were to be reimbursed by the govt in the first few years for losses incurred on the adverse risk pool likely to be among the early signups. Really wondering whether the reported losses on Obamacare policies by the insurers are "before" or "after" those reimbursements. Based on the profits reported by the public insurers, and the tremendous performance of their stock prices, I suspect those losses are "before" the reimbursements. If so, makes perfect sense that they are dropping out as these reimbursements are phasing out. And, of course, before their stock gets whacked.

Government needs you to pay taxes's picture

Coming like a gay pornstar, that is.  Now spread 'em and say 'Ahhh'.

JRobby's picture

Insurance accounting and taxation was a joke way before the wide spread accounting fraud we see now.

Now, it is total fiction

Number 156's picture

Just about everything that Barack Obama promised us about Obamacare has turned out to be a lie.

So where is the accountability?

The blame belongs to the American sheeple who put up with this stuff.
Nobody will be held accountable.

Caledonian's picture

People are powerless short of a revolution. We got more cheap Chinese shit to loose before there's nothing left to hold us back. Circling the drain type shit is what it takes.

tenpanhandle's picture

"Chinese shit to loose"...you either spelled too (to) wrong or lose (loose) wrong.

JuliaS's picture

Obama's just a mouth-piece for special interest groups, like very single president in the last 100 years.

His job is not to invent reforms, but to present them as something originating from the public, where in fact they're crafted by a handful of well obscured wealthy individuals who own this country.

WestVillageIdiot's picture

And yet I am still surrounded by middle-class dumbasses that like Obama, and want to vote for Hillary Soros. 

 

Muppet's picture

Thats because so many (teachers, civil servants, TSAs, police & fire, US Postal) get insurance and a retirement paid for by others (me).     Government support = Government employment.

ejmoosa's picture

If your kids are in school with teachers that are Obama/Clinton/Soros supporters, you need to take your kids out of those schools.

Ron Paul Home School them.  Put them in private school.

Because if you don't, they will sure as hell be brainwashed with lies and half truths.

Moustache Rides's picture

Most of the private schools are big time leftist, socialist, indoctrination centers as well.  The poison is everywhere.

Never One Roach's picture

Exactly, that's why they Do Not give a flying crap about Obamacare because they are getting these federal employee premium plans. Only the people like self-employed, etc are getting screwed by this.

 

I hate to say it but I hope those cities go bankrupt so those municipal employees feel what it's like not to have coverage and/or a pension plan and stop voting for these socialists.

slicktroutman's picture

You're not the only one surrounded by dipshits.

ToSoft4Truth's picture

Obamacare isn't the problem, it's the light being shown on the problem.  Look around - more than one handicapper slot in the parking lot, scooters for the customers, people dragging oxygen - that's all dead weight we as a society must shed.

Bastille Day's picture

True.  We don't let Darwin do his work anymore.  Could be a ploy by the elite to thin the middle class herd which is the only direct threat to them.  They then turn around and enable the slaves to spawn as they need the bodies but they are no threat.

PhoQ's picture

I'll turn off my mom's oxygen if you'll do yours.

You first though.

new game's picture

patience hooper, as the swarn of locost will darken the sky. tic toc...

Bear's picture

"If you like your Sh*t you can keep your Sh*t'