Further Proof that the Health Care Law Will Increase Premiums

Yesterday, we shared a post by Dan Greenberg addressing Arkansas Democrats continued interest in pushing for "A State Health Insurance Exchange." Below is an article shared by

The health care law isn’t stopping health care costs from rising. Also, as the U.S. Chamber’s Communications Director, Blair Latoff notes, “this is only the beginning.” Government mandates will drive premiums up. Below is an article by Blair Latoff which is the subject of this post.

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by Blair Latoff: Today, yet another survey has confirmed the Chamber’s persistent concerns and long held belief that the health law enacted last year in the name of reform will only serve to increase premiums and thereby hinder the goals of greater choice and coverage. A Kaiser Family Foundation/Health Research & Educational Trust 2011 Employer Health Benefits Survey released today found that after several years of relatively modest premium increases, annual premiums for employer-sponsored family health coverage increased to $15,073 this year, up 9 percent from last year. According to the survey, on average, workers pay $4,129 and employers pay $10,944 toward those annual premiums. As we warned during the legislative debate, the Patient Protection and Affordable Care Act and its amending reconciliation act do nothing to control health care costs and although these laws may expand coverage for some through the Medicaid expansion and distribution of tax payer dollars as subsidies, it will fundamentally drive up premiums for everyone as this survey proves.

This survey quantifies the broken promises sold to the American people. The fact of the matter is, you can’t keep the coverage you have if you like it and premiums will increase, rather than decrease.

And this is only the beginning.

Some substantial new insurance requirements have already become mandated – first dollar coverage of preventive services – most notably but other significant mandates have yet to be imposed.  While this newly released survey is worrisome in that it verifies our prognosis, the ills that will result are likely to only become more severe as all plans in the small group and individual markets will have to cover the prescribed essential health benefit package in 2014.

The Chamber will continue to urge the Department of Health and Human services to remember that, just like any other product, the price of health insurance will necessarily vary depending on the plan design. Prescribing a comprehensive design which plans must offer, will necessitate a comprehensive price. For example, when people decide to buy a car – there is an array of options available. While some people may want to pay extra for a car with leather seats and a sunroof – the price that accompanies a car with those options may be prohibitive for others who may elect to buy an automatic with manual windows and doors. To extend the analogy, if the market is regulated and automobile manufacturers and dealers are told that they may only produce and sell cars with leather seats and sun-roofs, all cars will be more expensive because they will all have these more expensive options, forcing many who would prefer to by a more modest car to wait for the bus.

So essentially, the health law requires manufacturers to only make cars with leather seats and sunroofs by prescribing the type of coverage plans have to offer. While we used to have the option to pay for basic coverage, the health care law takes away this flexibility, limiting choices and eventually coverage.

Bottom line, people must have the flexibility to purchase a plan that meets their needs and their budgets.

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Tags: Health Care Law, health care, obamacare, increased premiums, U.S., Chamber of Commerce, Blair Latoff, To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!