Obamacare Rates to Spike in 2016

Obamacare Rates to Spike in 2016

Obamacare is taking more fire this week amid the already pressing uncertainty surrounding the impending Supreme Court decision on state subsidies. Some argue it is a realization that should have been evident long before the law was passed.

According to a report issued by the federal Centers for Medicare & Medicaid Services many healthcare providers across the nation will be increasing their insurance premiums by as much as 60%.

The UNH of Florida is proposing to increase rates of their plans by 18% through the Obamacare exchange. Healthcare plans obtained outside the exchange will increase by approximately one-third.obamacare-texas-florida

Similarly, Scott & White of Texas is considering a 32% increase in their plans from the exchange; Humana is asking for a 30% hike; and North Carolina’s affiliate of the massive Blue Cross Blue Shield network is bumping rates up by 26%.

Analysts argue that the cause of the rate increase is due to policyholders taking advantage of the subsidy-driven lower cost health care. They say it has resulted in more outpatient visits, more prescriptions, and more lab work than expected.

In the world of economics, this situation is referred to as a market correction. The laws of supply and demand are proving that the government cannot artificially control markets without experiencing unintended consequences.