Last Thursday, President Obama used the announcement that there were now eight million people signed up for ObamaCare as the excuse for yet another touchdown dance celebrating what he touted as the success of his signature health-care law. The president’s boasts were as unfounded as the numbers are bogus. As I wrote then, not only are the figures for enrollment untrustworthy because so many of those being counted have not paid for their insurance, but they also include many Americans who lost their insurance because of the law and are now saddled with higher costs and coverage that doesn’t suit their needs. These ObamaCare losers may well equal or outnumber the number of those who have actually benefitted from it. Even more to the point, the administration’s delays of many of the provisions of the law have put off the negative impact it will have on jobs and the economy until after the midterm elections.
Americans are bracing for massive health-care cost increases next year. Stories about the hardships faced by many individuals and companies as a result of ObamaCare have been cited by the law’s critics. But the president has denounced them, and other Democratic apologists such as Senate Majority Leader Harry Reid have claimed they are falsehoods or outright inventions cooked up by the Koch brothers and other conservatives. The truth, however, is not hard to discover. After reading the piece I wrote last week about the president’s claims, one Connecticut businessman (who wishes to remain anonymous) whom I know wrote to me to tell the story of his company’s experience with the law and the way his representatives in Washington had responded to his complaints. Here is his story:
As usual, your column regarding President Obama and the Affordable Care Act was insightful and on target. Here’s a real world example of the future negative effects on businesses and individuals we aren’t likely to hear from the White House.
In November of last year, I met with our health insurance broker and learned that the renewal of our policy for our company’s employees would result in a 53 percent increase in premiums – largely due to increased mandates and other nuances of the Affordable Care Act. We developed a short-term solution by renewing our current policy (pre-ACA) for another year and moving its effective date from January 1, 2014 to December 1, 2013. This adjustment allowed us to avoid the effect of the new ACA requirements that took effect on January 1, 2014. Our premiums under this alternate plan increased, but only by 9%. I realize we’re a small company and this is but a single case. However, our broker indicated this scenario is likely to play out in many organizations next year.
In early January, we sent a letter describing this situation to our Governor, Congressman, and Senators. Finally, last week Senator Chris Murphy responded with what was essentially a staff-drafted form letter. No responses from our other elected officials have been received to date. Sen. Murphy’s letter completely ignored our message — specifically that our premiums were about to increase by 53 percent. Instead, the letter claimed, “research indicated the ACA should stabilize and possibly decrease health care premiums for small businesses and individuals.”
Silly me, I guess the emperor really does have clothes after all.
As I mentioned, the large increase resulted, in part, from certain mandates not previously covered. However, Connecticut already had a lot of mandated benefits in place (thanks primarily to our state’s kind-hearted special interest advocates). The large increase also resulted from a change in the way coverage for dependents will now be rated and priced. Previously, dependents were treated similarly across all age cohorts. Under the ACA, dependent coverage is and will be rated and priced separately for each age – with costs significantly increasing among the 18-26 year age cohorts. So, for people with kids of college age and a few years older, premiums are likely to increase significantly.
The “blame” for this spike can probably be placed more on the insurance industry than specifically the Congressional staffers who drafted the ACA. However, my understanding is the insurance industry was heavily involved with developing the legislation and, of course, the industry was an advocate for the enactment of the ACA. What a surprise that insurers will benefit from the new law.
By backdating its policy, this company saved itself from a devastating increase in 2014. But that won’t be possible in 2015 when it and innumerable other small, mid-sized, and large companies will be faced with the enforcement of more ObamaCare mandates. The impact of these increases on the ability of businesses to maintain their level of employment and benefits will be considerable. So, too, will the effect of this massive federal power grab on the economy. Thus, in addition to the millions of individual ObamaCare losers that lost their coverage, in 2015 we will have countless others who will suffer from the law.
All this means that, contrary to the president’s claims and demands that critics shut up and do as he says, the debate over ObamaCare is far from over. If anything, as this one businessman seems to be telling us, in 2015 it will just be getting started.