Obamacare Woes

The problems with the roll out of Affordable Care Act are only part of the PR problems of Obamacare. Already hundreds of thousands of Americans who purchase their own health insurance have received cancellation notices because the plans do not meet one or more of the federal requirements. At the moment, the number of cancellation notices greatly exceed the number of Obamacare enrollees.

Last month Blue Shield of California sent termination letters to 119,000 customers. About two-thirds of those people will experience a rate increase. Kaiser Permanente canceled 160,000 plans. That amounts to half of its insurance plans in the state of California.

The insurance carrier Florida Blue sent out 300,000 cancellation notices. That will affect 80 percent of the entire state’s individual coverage policies. Nearly 800,000 of health plans for New Jersey residents will not longer exist in 2014.

Those people who are able to find a substitute plan will end up paying much more. A study by the Heritage Foundation answered the question: “How Will You Fare in the Obamacare Exchanges?” They evaluated the experience for individuals shopping on the state exchanges. They compared the premium prices to what was available to them prior to the implementation of the exchanges.

In nearly a dozen states the premiums would increase by 100 percent or more for someone who is 27 years old. They also found significant increases for an adult age 50 and for a family of four.

The greatest increase reported so far was the CBS story about a Florida woman whose premium increased ten fold. But even smaller increases have generated negative responses. A Los Angeles Times article tells the story of a woman with a 50 percent rate hike who said “I was all for Obamacare until I found out I was paying for it.”

Many are finding how unaffordable the Affordable Care Act really is.

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