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One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Thursday, June 04, 2015

‘Costs Exploding Under Obamacare’

‘Hold Onto Your Wallets’ America

Broken Promises: “Finally, my proposal would bring down the cost of health care for millions -- families, businesses, and the federal government.” (President Obama, Remarks, 3/3/10)
  • “I will sign a universal health care bill into law by the end of my first term as president that will cover every American and cut the cost of a typical family's premium by up to $2,500 a year." (Senator Obama, Remarks, 6/23/07)
‘Hold Onto Your Wallets’ – Costs Rising For Families

“Hold onto your wallets ... many insurers want to substantially hike rates on Obamacare policies for 2016.” (“Obamacare Sticker Shock: Big Rate Hikes Proposed For 2016,” CNN, 6/2/15)
“Many insurers… say they are asking for higher premiums because they remain unsure about the future and what their medical costs will be.” (“Seeking Rate Increases, Insurers Use Guesswork,” New York Times, 6/2/15)

IDAHO: Rate increases up to 100% “Blue Cross of Idaho Health Service, Inc., Gold & Silver St. Luke’s CCO – Individual … Requested Rate Increase: 100%.” (“Idaho Rate Review Submissions,”, Accessed 6/2/15)

ARIZONA: Rate increases up to 79% “Time Insurance Company, 2016 Individual Medical Plan – Individual … Requested Rate Increase: 78.88%.” (“Arizona Rate Review Submissions,”, Accessed 6/2/15)

ALASKA: Rate increases up to 78% “Time Insurance Company, 2016 Individual Medical Plan – Individual … Requested Rate Increase: 77.53%” (“Alaska Rate Review Submissions,”, Accessed 6/2/15)

NEVADA: Rate increases up to 73% “Time Insurance Company, 2016 Individual Medical Plan – Individual … Requested Rate Increase: 72.78%.” (“Nevada Rate Review Submissions,”, Accessed 6/2/15)

ALABAMA: Rate increases up to 71%“Blue Cross and Blue Shield of Alabama, Blue Choice Platinum – Individual … Requested Rate Increase: 70.88%.”  (“Alabama Rate Review Submissions,”, Accessed 6/2/15)

NEW MEXICO: Rate increases up to 65% “Blue Cross Blue Shield of New Mexico, PPO – Individual … Requested Rate Increase: 65.01%.” (“New Mexico Rate Review Submissions,”, Accessed 6/2/15)

VIRGINIA: Rate increases up to 60% “Aetna Life Insurance Company, Aetna Fee For Service – Small Group … Requested Rate Increase: 59.71%.” (“Virginia Rate Review Submissions,”, Accessed 6/2/15)

UTAH: Rate increases up to 58%“Arches Mutual Insurance Company, Arches Health Plan Individual POS – Individual … Requested Rate Increase: 58.00%” (“Utah Rate Review Submissions,”, Accessed 6/2/15)

DELAWARE: Rate increases up to 54% “Time Insurance Company, 2016 Individual Medical Plan – Individual … Requested Rate Increase: 54.28%.” (“Delaware Rate Review Submissions,”, Accessed 6/2/15)

NEW HAMPSHIRE: Rate increases up to 51% “Minuteman Health, Inc., MHI NH MNO 13 – Individual … Requested Rate Increase: 51.27%.” (“New Hampshire Rate Review Submissions,”, Accessed 6/2/15)

Costs Rising For Taxpayers

CMS, OFFICE OF THE ACTUARY: “By 2023 federal, state, and local government financing is projected to account for 48 percent of national health expenditures, up from 44 percent in 2012, and to reach a total of $2.5 trillion.” (Office Of The Chief Actuary For The Centers For Medicare And Medicaid Services, “National Health Expenditure Projections, 2013-23”, Health Affairs, October 2014)
‘Exchanges Are Wrestling With Surging Costs’
‘Overhead Costs Exploding’

“Five years after the passage of ObamaCare, there is one expense that’s still causing sticker shock across the healthcare industry: overhead costs. The administrative costs for healthcare plans are expected to explode by more than a quarter of a trillion dollars over the next decade, according to a new study published by the Health Affairs blog. The $270 billion in new costs, for both private insurance companies and government programs, will be ‘over and above what would have been expected had the law not been enacted,’ one of the authors, David Himmelstein, wrote Wednesday. Those costs will be particularly high this year, when overhead is expected to make up 45 percent of all federal spending related to the Affordable Care Act.” (“Overhead Costs Exploding Under Obamacare, Study Finds,” The Hill, 5/27/15)

“The extra administrative costs amount to the equivalent of $1,375 per newly insured person per year, the authors write.” (“Overhead Costs Exploding Under Obamacare, Study Finds,” The Hill, 5/27/15)

‘One Of The Biggest Cost Drivers Is Call Centers’

“Nearly half of the 17 insurance marketplaces set up by the states and the District under President Obama’s health law are struggling financially, presenting state officials with an unexpected and serious challenge five years after the passage of the landmark Affordable Care Act. Many of the online exchanges are wrestling with surging costs, especially for balky technology and expensive customer-call centers — and tepid enrollment numbers.” (“Nearly Half Of Obamacare Exchanges Are Struggling Over Their Future,” Washington Post, 5/1/15)

“Most exchanges have operating budgets of $28 million to $32 million. One of the biggest cost drivers is call centers, where operators answer questions and can sign people up. Enrollment can be a lengthy process — and in several states, contractors are paid by the minute.” (“Nearly Half Of Obamacare Exchanges Are Struggling Over Their Future,” Washington Post, 5/1/15)

“A billion dollar government contract involving hundreds of local workers at an Obamacare processing center in Wentzville. But now employees on the inside are stepping forward, asking, ‘Is this why we're broke?’ Some of them claim to spend most of their day doing nothing.” (KMOV-MO, 5/12/14)

“On April 16, a person claiming to be a former Serco employee posted this online, ‘This place is a JOKE. There's nothing to do--NO WORK.’” (“Obamacare Contractor Pays Employees To Spend Their Days Doing Nothing,” Weekly Standard, 5/13/14)

‘‘I feel guilty for working there as long as I did,’ Takatz, 42, told the newspaper. ‘It was like I was stealing money from people.’” (“Contractor For Obama Health Reform Law Scrutinized,” AP, 5/15/14)

Costs Rising For Employers

“The Commonwealth Fund's state-by-state analysis also shows that in every state over the course of a decade, the cost of employer-provided health care still grew faster than incomes. That, in turn, had led to workers footing a bigger share of the costs of their health insurance. In fact, employee contributions to their insurance costs have risen by as much as 175% since 2003 in some cases — with workers in the south having the biggest cost burden.” (“Workers 'Squeezed' By Health Insurance Costs,” USA Today, 1/17/15)

“Nationwide, the average contribution an employee made to an insurance premium in 2013 and the average deductible together represented 9.6 percent of the median income of American households with members under age 65. That is up from 8.4 percent in 2010 and nearly double the 5.3 percent that households were paying for employer-provided health coverage in 2003.” (“Insurance Costs Continue To Squeeze Workers,” The Baltimore Sun, 1/8/15)

Tags: Exploding cost, Obamacare, news reports, nationwide To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 11:35 AM - Post Link


Anonymous Jeffrey Locke said...

Nothing government does ever gets more affordable. Because the corruption of bureaucrat oversight has to be PAID!

Anonymous Andrew J. Pierson said...

Fix the bureaucrats’ mess on healthcare: Ask nurses.’-mess-on-healthcare-ask-nurses


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