Many people including myself had predicted healthcare insurance rates to climb higher than they did in 2014 and 2015. Obamacare supporters have used the lower increases to defend our national socialist medical program.
However, that defense is about to take a major hit.
A growing number of major healthcare insurance carriers have started filing requests for 2016 rate hikes with their state insurance departments. A number of those rate hike requests will not only silence many Obamacare defenders, they will indicate just how unaffordable the Affordable Care Act has become.
One report stated:
“BlueCross BlueShield of Tennessee . . . said it lost $141 million from exchange-sold plans, stemming largely from a small number of sick enrollees. ‘Our filing is planned to allow us to operate on at least a break-even basis for these plans, meaning that the rate would cover only medical services and expenses—with no profit margin for 2016,’ said spokeswoman Mary Danielson.”
Similar losses have prompted some carriers to request huge increases. CareFirst BlueCross BlueShield in Maryland has requested increases of 30.4% on average over current premium rates. Let’s put that into perspective. A family paying $300 a month could see their premiums jump up to $391.20 a month. That’s an annual increase of $1,094.40.
However, Maryland residents should be thankful they don’t live in New Mexico where the leading healthcare insurer Health Care Service Corp. has filed a rate increase averaging 51.6% over current rates. Again, to put this into perspective, the same $300 a month premium would jumps to $454.80. That’s an annual increase of $1,857.60.
In an economy where most families are not even seeing cost of living increases, these rate hikes could easily be more than they can afford. It will undoubtedly lead to many more families dropping their healthcare insurance for purely financial reasons.
If enough major healthcare insurance providers join in with double digit rate hike requests, it could be the final nail in Obamacare’s coffin, proving once and for all that it’s not affordable and will leave far more Americans without insurance than when it went into effect.
I just hope and pray that Republicans have a workable and truly affordable plan ready when the collapse of Obamacare happens.