California sees Obamacare premiums increase nearly three times more

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Bad news for working class families in California.  Obamacare is formally known as the Affordable Care Act, although almost every development issue suggests the massively dense legislation was improperly named.  The issue is much larger than California.  Reports state that only about one third of all health insurers across the country reported profits in their first year in the Obamacare marketplace.  Considering how the law forces insurance providers to cover all pre-existing conditions and allows individuals to stay on their parents’ plan until age 26, this should not be surprising.  To a large number of Americans nation wide Obamacare must be repealed and replaced with a plan that either strengthens free market incentives to provide better plans and products.

Obamacare insurance premiums in California are set to rise by an average of 13.2% in 2017, over three times the increase of the previous two years in a move that is certain to put the law back in the spotlight.  Healthcare premiums in California rose relatively modestly in the previous two years. Premiums provided by Covered California rose by just 4% in 2016, and 4.2$ in 2015 California officials are blaming next year’s staggering increase on the rising cost of medical care and specialty drugs.

The state’s biggest insurers, which include Blue Shield of California and Anthem Inc., asked for the hikes to cover the rising costs. The Los Angeles Times reports the impact on consumers will depend on if they get taxpayer-supported subsidies for their plans and if they are willing to explore cheaper options.

Santa Monica Consumer Watchdog president Jamie Court blames insurance providers for taking advantage of the situation.  “We’re paying more for less,” he said. “Insurers are limiting access to doctors and hospitals while also demanding a higher price.”

Obamacare plans are provided by the federal website, but California is one of the few states in the country which operates its own exchange service. Several major insurance providers including UnitedHealth have stopped selling their plans on the marketplace.  Here’s what some other news sites have to say about Obamacare, Hypeline viewers, what do you think is the future of the current healthcare laws?

Townhall says electing Trump is key to defeating Obamacare
The next President is going to be faced with the extremely difficult task of figuring out how to correct the failures of Obamacare. Will those failures signal a move toward more socialism, corporate welfare, and corruption, or will they instead cause the state to recede and allow genuine free markets to flourish. Hillary Clinton will do the former. Donald Trump will do the latter.

Bloomberg calls the ACA a success under threat
Obamacare has made great strides toward its signature goal: to reduce the number of Americans without health insurance. Unfortunately, another important goal — ensuring that everyone’s insurance policy provides adequate coverage — remains under siege in the courts and Congress.

The Hill reports insurers are losing money
While insurers made nearly twice as much money from healthcare premiums in 2014, overall profits “diminished noticeably” because of higher payouts, according to the expansive new analysis on companies participating in the exchanges. Overall, health insurers underestimated their total medical costs by about 5.7 percent in their first year.

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