President Obama’s healthcare program has been the subject of much controversy as many prognosticators predicted that a government subsidized plan would ultimately lead to higher monthly premiums.
This assertion has been borne out be true since it has been announced that premiums are slated to go up in 2017 by an average 25% in the 39 states that the federal plan serves, according to a report from the Department of Health and Human Services.
Moreover, the number of health insurance providers will decrease since major national carriers such as UnitedHealth Group, Humana and Aetna have limited the role they will play. Insurers listed with HealthCare.gov will drop from 232 to 167 this year.
From the Associated Press:
Republicans pounced on the numbers as a warning that insurance markets created by the 2010 health overhaul are teetering toward a “death spiral.” Sign-up season starts Nov. 1, about a week before national elections in which the GOP remains committed to a full repeal.
Donald Trump weighed in on the subject:
“It’s over for Obamacare,” Republican presidential candidate Donald Trump said at a campaign rally Monday evening in Tampa, Florida.
Trump said his Democratic rival, Hillary Clinton, “wants to double down and make it more expensive and it’s not gonna work. … Our country can’t afford it, you can’t afford it.” He promised his own plan would deliver “great health care at a fraction of the cost.”
Health and Human Services is expecting many people to do more window shopping for lower premiums this year and added that consumers who are willing to switch to cheaper plans will still be able to find bargains.
A positive from this plan is consumers below a certain income level would receive subsidies covering a significant portion of the new higher premiums possibly cutting them by half.
Despite all the hype coming from the Obama administration, the Obamacare program has been called a dismal failure by most consumers unlucky enough to have signed up.
If Trump repeals it, there’s a good chance his program will be much better since it will go back to free market private insurers who will compete for consumer business, and drive down costs.
Source: Associated Press