Confirmed: Obamacare Raised Premiums

A new study proves that Obamacare raised premiums for insurance in all but six states, and raised them the most in some of the most populous states.

As I’ve already posted, the New York Times and USA Today have both recently shown how medical expenses are rising out of reach of the middle class. The New York Times has also reported that people are avoiding medical care because they can no longer afford it; their out of pocket expenses or co-pays are too high.

Now here is more news from “Now There Can Be No Doubt: Obamacare Has Increased Non-Group Premiums In Nearly All States.”

obamacare premiums

…a new study from the well-respected and non-partisan National Bureau of Economic Research (and published by Brookings Institution), overcomes the limitations of these prior studies by examining what happened to premiums in the entire non-group market. The bottom line? In 2014, premiums in the non-group market grew by 24.4% compared to what they would have been without Obamacare.  Of equal importance, this careful state-by-state assessment showed that premiums rose in all but 6 states (including Washington DC).


…unlike prior studies which simply compared pre-Obamacare premiums in 2013 to actual premiums offered on Exchanges in 2014, this new study isolates the causal impact of Obamacare statistically by using trend data in each state to figure out what non-group premiums in 2014 would have been in the absence of Obamacare. Thus, critics could dismiss many other so-called “pre-/post” studies by effectively saying “Well, premiums in the non-group have always gone up by a large amount, so what’s happening under Obamacare is no different.”  Such criticisms cannot be levied at this study. All of the percentage changes shown in the chart [above] represent the net change attributable to Obamacare after accounting for all the other factors that would have made premiums go up.

Obamacare is spiking insurance premiums the most (over 35 percent) in some of our most populous states (California and Texas). The subsidies only cover about half the people and, of course, higher premiums mean higher debt or taxes or both to pay the subsidies.

Obamacare took a bad insurance situation (perhaps) and made it much worse (beyond doubt).