Report: Obama admin congratulates itself on cutting subsidy-eligible enrollees’ premiums by an average of 76 percent

posted at 6:41 pm on June 18, 2014 by Erika Johnsen

The Department of Health and Human Services took on a quietly triumphant tone in releasing their latest ObamaCare report this week, gladly proclaiming that federal subsidies have helped to offset the prices of premiums paid by eligible ObamaCare enrollees by an average of 76 percent as evidence that ObamaCare is working. Since almost nine out of ten enrollees have been eligible for some amount of assistance, that’s a lotta’ discounts:

Premiums that normally would have cost $346 a month on average instead cost consumers just $82, with the federal government picking up the balance of the bill. …

It suggests that the federal government is on track to spend at least $11 billion on subsidies for consumers who bought healthcare plans on marketplaces run by the federal government, even accounting for the fact that many consumers signed up for coverage in late March and will only receive subsidies for part of the year. …

Obama administration officials Tuesday focused on the availability of affordable coverage for millions more consumers.

“What we’re finding is the marketplace is working. Consumers have more choices, and they’re paying less for their premiums,” Health and Human Services Secretary Sylvia Burwell said in a statement.

Which certainly sounds lovely, until you remember that “the federal government picking up the balance of the bill” actually means “taxpayers picking up the balance of the bill.” The estimated $11 billion in subsidies noted above only includes signups through the federal marketplace, and when you add in all of the states that ran their own exchanges, the cost could be more than $16.5 billion for this year alone — but the country can only absorb the collectivized/redistributed costs of ObamaCare up to a point, and those costs are only going to keep on rising. To name a few, those costs are coming in the form of fewer choices in terms of narrower networks and necessarily comprehensive plans (completely screwing over the young and healthy), larger deductibles, and of course, rising premiums, via a new study from the National Bureau of Economic Research:

We provide comparisons for purchasers of self only coverage in California and in 23 states with minimal prior state premium regulation before the ACA now using federally managed exchanges. Using data from the Current Population Survey, we find that the average prices increased by 14 to 28 percent, with similar changes in California and the federal exchange states; we attribute the increase primarily to higher premiums in exchanges associated with insurer expectations of a higher risk population being enrolled.

And an updated study from the Manhattan Institute examines premiums in 3,137 of the United States’ 3,144 counties, concluding that, on average, individual-market premiums are up by an average of 49 percent. As Peter Suderman at Reason aptly summarizes:

Relying on a 3,137 county comparison of the five cheapest individual plans available prior to Obamacare with the five cheapest plans through the exchanges, the study by health policy fellow Yevgeniy Feyman found that, on average, premiums were up 49 percent under Obamacare. Again, that’s an average, and it masks some variation—in New York, which had unusually restrictive, badly designed health insurance market rules prior to Obamacare, premiums are actually down quite a bit—but it indicates that the overall trend for unsubsidized premiums is up. …

To the extent that insurance is relatively cheap, it’s because taxpayers are footing a big chunk of the bill. Obamacare didn’t reduce the price of insurance; if anything it raised it—and then used tax revenues to cover the difference.


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What a pile of rancid goat dung this guy is shoveling.

rplat on June 18, 2014 at 6:43 PM

What is that munching sound that seems to be originating in my wallet?

RushBaby on June 18, 2014 at 6:43 PM

Wealth Spread – it is so easy to use, it’s almost earned!

Rix on June 18, 2014 at 6:49 PM

The Plan is working just as it was designed. Cut medicare, expand Medicaid and provide tax payer funded subsidies to make it look like O’care is the best thing since bankruptcy.

vnvet on June 18, 2014 at 6:50 PM

let me guess….MAKERS paying for the TAKERS yet again…..

PURE B S

SDarchitect on June 18, 2014 at 6:53 PM

it’s not lowering premiums if somebody else is picking up the tab. aren’t we paying for obama’s healthcare? i guess one is reluctant to see a problem if one gets health care on the government dime.

warmairfan on June 18, 2014 at 6:56 PM

“Subsidy Eligible”.paid for by the hard working middle class who see have already seem their premiums rise..and they will rise even more next year.

celt on June 18, 2014 at 7:02 PM

“You know, Ted, a few years ago this guy would be getting us coffee.”

Irony:

Malia Obama has new Hollywood gig
Fetches coffee on set of Halle Berry’s TV show

http://www.wnd.com/2014/06/malia-obama-has-new-hollywood-gig/?cat_orig=diversions

davidk on June 18, 2014 at 7:04 PM

OT: Per MO…our Founding Fathers were not born American…..

d1carter on June 18, 2014 at 7:04 PM

And they have the emails to back it up.

Oil Can on June 18, 2014 at 7:06 PM

So premiums are only 3x more what people can afford. Hmmm… Don’t remember that feature being promised. So which way was the cost-curve bent? Looks near vertical.

I especially like the excuse that the pools were riskier than expected when they knew damn well the pools would necessarily include everybody who was too risky to insure before.

ROCnPhilly on June 18, 2014 at 7:11 PM

Obamacare didn’t reduce the price of insurance; if anything it raised it—and then used tax revenues to cover the difference.

Obamanomics – IT’S MAGIC!

Unless you’re the one being SCREWED.

GarandFan on June 18, 2014 at 7:15 PM

Boo-YAH!!!

Told ya haters…

Read a damn economics book wingers….

BigWyo on June 18, 2014 at 7:16 PM

Whew, for a minute there I was worried the redistribution wouldn’t kick in.

/sarc

gwelf on June 18, 2014 at 7:16 PM

Premiums that normally would have cost $346 a month on average instead cost consumers just $82, with the federal government picking up the balance of the bill. …

See…here’s the problem with stupid people:

That last part of the sentence, in emphasis…is bullshit.

The Federal Government pays for NOTHING!!

OTHER AMERICANS…the ONES THAT WORK… pay for everything the Federal Government claims to “give” people.

They do no such thing. They force other Americans to pay people to be deadbeats.
And when the system is working fine, the current administration steps in and creates FALSE DEMAND and MARKET STRAIN to artificially choke access, so they are now the only game in town.

In any God-fearing, Just Country, we’d charge them criminally.

Of course, no American watching this news on TV will ever know this, because they think they are being paid to just sit back and let Smiley McDipshit run things.

Morons. We got morons on our team.

a5minmajor on June 18, 2014 at 7:17 PM

Always fun to spend somebody else’s money. AND then to be thanked for it…. HOW FRIGGIN AWESOME!

CW on June 18, 2014 at 7:21 PM

My groceries only cost me $100 a mo.–THANK YOU FOOD STAMPS!

Weffin libtards.

hillsoftx on June 18, 2014 at 7:21 PM

The more of your money they spend, the more they’re saving for everyone but you.

Oxymoron on June 18, 2014 at 7:26 PM

Always fun to spend somebody else’s money. AND then to be thanked for it…. HOW FRIGGIN AWESOME!

CW on June 18, 2014 at 7:21 PM

That says it all..Team Obie is a joke..:)

Dire Straits on June 18, 2014 at 7:28 PM

Everything is costing more under Obama, while his crony capitalists are raking in trillions…..

Obama pays off the poor with food stamps and welfare checks, while working people send in their taxes to pay for it all…..

This is “Atlas Shrugs” in real life.

redguy on June 18, 2014 at 7:40 PM

. . . and there is thunderous applause as newly covered individuals are placed on secret waiting lists awaiting care.

TarheelBen on June 18, 2014 at 7:46 PM

Just image how great the savings will be when more taxpayer funded subsidies are distributed to those poor waifs, preggo mamacitas, bearded 5 and 6 year olds with MS-13 tats, along with their immediate family members yearning to escape to our border free, carefree, it’s all free, country.

Oh. I meant THEIR savings – you seriously didn’t think you would get………oh never mind.

StubbornGreenBurros on June 18, 2014 at 7:57 PM

Let me know when they’ve actually cut costs.

Without using the words death panel.

formwiz on June 18, 2014 at 7:57 PM

How horribly embarrassing it must be, to be forced to stand on a public stage, and in front of the whole world, admit openly that you don’t have the vaguest clue about economics, or that you have just destroyed the gr…wait…

…is a conscience an emotional necessity to feel shame?

…damn. Never mind.

a5minmajor on June 18, 2014 at 8:00 PM

What a jagoff.

22044 on June 18, 2014 at 8:01 PM

Troll-free thread, telling.

22044 on June 18, 2014 at 8:05 PM

…the cost could be more than $16.5 billion for this year alone — but the country can only absorb the collectivized/redistributed costs of ObamaCare up to a point, and those costs are only going to keep on rising.

This can’t end well. And now they want to dramatically increase the budget of VA. They just keep spending. I can’t help but believe we’ll be paying over five dollars a gallon for gas by the end of Obama’s second term, and much more, in due time.

rickv404 on June 18, 2014 at 8:11 PM

The Washington Redskins
The Washington Redistributionists

ITguy on June 18, 2014 at 8:43 PM

Report: Obama admin congratulates itself on cutting subsidy-eligible enrollees’ premiums by an average of 76 percent

“Cutting subsidy-eligible enrollees’ premiums by an average of 76 percent”

Which of course means that they are NOT cutting enrollee’s premiums at all, they are simply subsidizing them by that amount.

And for this, they congratulate themselves.

That means the 76% figure is worthless, because it’s not measured against any tangible amount. Measure how much they are paying for premiums compared to how much they would have been paying for such premiums before Obamacare. And make very sure the compared plans have the same deductibles and co-pays. Because if you’re able to save, say, 20% on premiums for a plan that requires you pay far more in deductibles and co-pays, then you haven’t saved money at all.

There Goes the Neighborhood on June 18, 2014 at 9:29 PM

I mean, that’s the whole point of this, right? Panem et circenses? Use any means necessary to take money from people who won’t vote for you, then use the money to keep people who will vote for you happy?

Knott Buyinit on June 18, 2014 at 10:01 PM

We’re overdue for some of libfree’s infamous quotes. Whistlin’ and Pissed.

Closet Optimist on June 19, 2014 at 9:13 AM

The one thing they’ll never do is show how much premiums have risen since Obamacare was passed. They should use 2010 for a baseline. When I do that, I can see that my premiums for a fairly basic policy have gone up something like 300% if I take inflation and the fact I’m 4 years older.

The benefits might have improved a bit, but it sure as heck wasn’t free!

DaveK on June 19, 2014 at 11:27 AM