Medical Costs: President Obama used to talk about “bending the cost curve” as a justification for his health overhaul. But it looks increasingly like ObamaCare is sparking a major health care inflation spiral.
This week three big insurance companies in Massachusetts announced they lost money in the first quarter, thanks to ObamaCare’s new taxes and fees.
Just wait until Burger King and other have to play $15/hr as a minimum wage, the job loss and the companies loss will mount.
But at least the Left will be happy in their “superiority” and their “vision” of a “better” America…
And it will be someone elses fault when it all comes crashing down because they had “good intentions” so it can’t possibly be their fault.
After all, these companies make millions of dollars, they can afford to make a little less to help out “the people” The Leftists would say.
The fact that they don’t fundamentally care about how business works is the scariest part.
Blue Cross Blue Shield of Massachusetts reported a $59.3 million loss after it had to pay $73 million toward financing ObamaCare. Pilgrim Health paid $22.9 million in ObamaCare taxes, leading to a loss of $17.3 million. And the Tufts Health Plan would have broken even if not for ObamaCare.
The main cost imposed on these insurers is ObamaCare’s “health insurance tax,” which is based on a company’s market share. This year, the tax will cost the industry a total of $8 billion, and the burden will go up from there.
“We think of it as a sales tax on health care,” Lora Pellegrini, president of the Massachusetts Association of Health Plans, told the Boston Globe. “This is going to be passed on in higher premiums.”
And guess what, that will raise your Auto Insurance and your Home Insurance costs too. After all, Liability BODILY INJURY and uninsured BODILY INJURY…
Got that? Higher premiums. And that’s in Massachusetts, which had already imposed ObamaCare-like changes years before and has among the highest premiums in the nation.
And is dumping that exchange because it went bust!
But suggest anything else to a Liberal and they’ll howl about how you want to push grandma over a cliff and kill children.
The fact that THEY are pushing them over doesn’t even occur to them, because they are “doing the right thing” because “they care”.
Meanwhile, a new industry survey suggests that overall employer health costs will climb by 9% this year, and other surveys find small-business premium hikes in the double if not triple digits.
Keep in mind that premium growth was decelerating before ObamaCare — they climbed less than 6% in all but one of the past eight years, according to the Kaiser Family Foundation.
In addition, ObamaCare’s massive insurance subsidies are fueling demand, pushing first-quarter health spending up at a rate not seen since 1980.
The administration is aware of this problem. This week it decided to let insurance companies cap the amount they’ll pay toward expensive procedures (while requiring them to pay 100% of low-cost “preventive” treatments). It’s meant to keep premiums down, but turns the concept of insurance completely upside down.
Good luck with that Cancer treatment! But hey, you’ll get free birth control pills! 🙂
In the wake of this, Kaiser CEO Drew Altman predicted that “the conversation will soon shift back to health care costs because they are rising more sharply again.”
No kidding. Anyone with a rudimentary understanding of economics knows you can’t turbocharge demand, pile on mandates and taxes, and expect prices to go down.
EXCEPT THE LEFT.
After all, it’s the “right” thing to do. 🙂
Anything else would be “greedy”, “racist” and “discriminatory”!! 🙂