Friday, September 6, 2013

Obamacare premiums: the prices keep falling.

Kaiser Family Foundation released a study of preliminary prices from 17 state and DC health insurance exchanges, and finds that costs are significantly lower than previously anticipated.  In other words, the biggest benefit here are those who do not qualify for any federal subsidy, and must either choose to buy on the open market, pay a fine or buy from the exchanges.

But wait, the news is actually probably a lot better than the KFF's information shows.  HHS (ASPE Office of Health Policy) released a study this past July showing that prices are really going to drop a lot for some people.


But wait, we already knew this past June that prices were going to be lower than expected.

But wait, I haven't even gotten to the best part...well at least for me.  Recall that I wrote this past June that Avik Roy's article in Forbes was terrible, notably his citation of higher prices in the preliminary ACA numbers, compared to what could be found online at eHealthInsurance.  As I noted then:
"If you try to compare prices between ACA rates and those on the open market, you're not comparing apples to apples."
 Well, as that KFF report stated:
"The coverage that will be available to people in exchanges will differ from coverage now sold in the individual insurance market in several important ways ... These changes make direct comparisons of exchange premiums and existing individual market premiums complicated, and doing so would require speculative assumptions and data that are not publicly available."
So I say again, you have to be careful as to who you pay attention to, because a lot of people out there are either disingenuous or not very intelligent.

You see, when people actually take a look at these plans, they will love the prices and the rash of new rules that benefit all Americans.  Obamacare will come back to haunt Republicans who have been adamantly opposed to funding the ACA.

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