By John Vinci
Last Friday marked one and a half years since the passage of
Obamacare. The more the Obama Administration implements Obamacare and
the more Americans discover what it actually contains, the more we
realize how disastrous it is.
Just this week Milliman, Inc. issued a report for the Ohio Department
of Insurance that estimates Obamacare will cause individual health
insurance premiums in Ohio to increase by 55 to 85 percent.
also calculates that Ohio’s health insurance exchange (now called
“Affordable Insurance Exchanges” by the Obama Administration) will cost
between $19 million and $34 million per year.
A health insurance exchange is an online marketplace for health
insurance — just like Expedia and Orbitz are online marketplaces for the
airline and hotel industries. Every state must be on track to have
their own exchange set up by 2014 otherwise the federal government will
be required to run an exchange for that state. As running an exchange
is a substantial undertaking, the Obama Administration is working very
hard and somewhat unsuccessfully to encourage states to start their own
health insurance exchanges. With only 13 states having passed
exchange legislation into law, there’s a good chance the federal
government will have to run a significant number of state exchanges.
Obamacare gives the State exchanges the authority to issue subsidies
to assist some people with paying for their health insurance. But a
federally-run exchange, due to a glitch in the Obamacare statute
reported by Investor’s Business Daily, does not have the statutory
authority to issue such subsidies. Perhaps unsurprisingly, the
administration has ignored the plain text of the statute and is
proceeding as if both state and federal exchanges can offer subsidies.
If the federal government continues to go beyond the congressionally
approved law and provides people with health care subsidies it will mean
tens of millions of additional taxpayer dollar expenditures.
Then there’s the High Risk Pools. Due to pre-existing conditions
many individuals find it difficult to find health insurance. A high
risk pool is an insurance plan for people who can’t get health insurance
elsewhere because of their pre-existing conditions. Obamacare sets
aside $5 billion to subsidize high risk pools called “Pre-Existing
Condition Plans” in every state. While early estimates predicted that
the program would quickly run out of money, the program has instead been
unsuccessful in attracting people who were presumed to be the most in
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