Tuesday, October 21, 2014

Small Businesses Get Sobering Dose Of Reality as Health Insurers Reveal Their Rates For 2015

Small Businesses Get Sobering Dose Of Reality as Health Insurers Reveal Their Rates For 2015

Small Businesses Get Sobering Dose Of Reality as Health Insurers Reveal Their Rates For 2015

Although the Obama administration has yet to release the federal healthcare premiums for 2015, some private insurers have.
One of them in Minnesota has indicated that they will be showing increases of up to 60% for their ACA-compliant policies. Preferred One, the largest and lowest-cost provider of health insurance in the state, pulled out of the state’s MNsure exchange last month due to its being “unsustainable.”
Alycia Riedl, with the Minnesota Association of Health Underwriters, commented on the news:
You’ve gotta remember that the majority of consumers who have individual health insurance policies did not buy them through MNsure; most of them are outside of MNsure at this point and so they haven’t received their renewals yet; and as they start to receive them, they’re going to understand that they have significant increases facing them.
Furthermore, a study was also just released that surveyed 2,600 businesses around the state, finding that 74% said prices of healthcare insurance increased after the law went into effect and that most of these increases were over 10%.
Years ago, economist and author Dr. Thomas Sowell warned of the problems that would accompany a universal, government-mandated healthcare system:
It is amazing that people who think we cannot afford to pay for doctors, hospitals, and medication somehow think that we can afford to pay for doctors, hospitals, medication and a government bureaucracy to administer “universal health care.”
Despite repeated assurances from the Obama administration that this would not be the case and that lowering costs was a fundamental tenet of the plan at its passing, it seems that in practice it is not working out this way.
In fact, it’s working out in precisely the opposite way: Not only are rates increasing, but they are increasing at extremely high levels.

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