Really simple actually. If the federal government mandates additional coverage – like coverage for 26 year old “kids” and no lifetime or yearly limits – the cost to provide that coverage will go up. We know that is exactly what Democrats in Congress want. Ask your employer. Ask small business owners. Health care costs are going up … way up.
The left’s answer is always the same … they are going to demand that everyone jump into the water and chip in by paying premiums to the insurance companies. This magical solution will somehow stabilize – if not actually lower – the cost of health care while ensuring everyone has coverage and can feel good about themselves.
Well, I guess the president should have stated – just like Cap and Tax – the additional regulation in health care will cause costs to “necessarily skyrocket.”
I’ve spoken in detail to two small business owners about health care insurance premiums during the last 30 days or so. During the proposal process for the next year, both were told the cost to keep their current level of coverage, plus the soon mandated federal requirements, would result 15 to 20 percent increases in premiums. (Don’t even bother arguing most of that goes to insurance company profits.)
For larger employers, the Wall Street Journal has some additional information.
For the first time, those with employer-sponsored health insurance through large companies will be able to keep their adult children on their plans until age 26 regardless of their kids’ educational status, and workers generally won’t have to worry about lifetime or annual limits on coverage when enrollment opens for 2011 benefits.
Totally awesome! But…
But they may face higher out-of-pocket costs as medical inflation continues its unrelenting climb and as the healthcare-overhaul law’s provisions start to take effect.
“May” face higher out-of-pocket costs? Hah! Only if those large businesses are willing to cut elsewhere (i.e. hiring) or increase prices for products and services. My emphasis in bold.
Large employers are budgeting for an average 9% jump in health-care costs next year compared with an average 7% increase this year, the NBGH survey found. The figures reflect costs after employers have made plan-design changes.
Changes related to the health-overhaul law account for about 1% of next year’s additional cost increase, while higher prices from health-care providers account for the other 1%, Darling said.
Read that second paragraph again. I’m not sure how they figured the 1 percent figure, but remember the mandates are just starting with additional changes through something like 2014. Fifty percent of the increases are tied to federal mandates, while the other 50 percent are due to increases paid to health care providers and hospitals. Has the legislation slowed the rate of increases from health care providers? Guess not, and on top of that the mandates increased costs another 1 percent for large businesses.
As a reminder … necessarily skyrocket.
Why do this? Well, just ask Rep. Barney Frank (D-Mass.). This is part of the master plan, which of course will result in liberal leaders claiming they need to remove the “middle man” to fix the problem because small businesses – the engine of the United States economy – are getting totally squeezed and put out of business due to high health care insurance premiums.
Yeah! Get rid of the evil insurance companies making a profit. Just like, oh, let me think for a nano-second, the student loan industrial complex who have been screwing students by providing 10 year education loans at less than 2 percent interest rate. (Real number, that is what we are paying on my wife’s student loans.)
No doubt about it … single payer is the end-game.