CMS admits – in writing – Obamacare plans will cost more even with government subsidies

President Obama told everyone that he expected family premiums to be lowered by $2,500 per year. We’ve established that statement as a lie, but there is more. We said premium costs and health care would be more expensive due to this legislation and now the Centers for Medicare & Medicaid Services (CMS) agrees.

Hat tip to Hot Air who directs us over to the Daily Mail. You can download the scanned copy of the letter (PDF, 2MB). The letter is from CMS to state insurance commissioners giving them a heads up … lots of people are finding out that even with government subsidies, health care insurance is turning out to be more expensive than it was before. When referring to those who had insurance before and were being informed they were loosing their policy, Gary Cohen, a director at the Center for Consumer Information and Insurance Oversight – part of CMS – wrote…

Although affected individuals and small businesses may access quality health insurance coverage through the new Health Insurance Marketplace, in many cases with federal subsidies, some of them are finding that such coverage would be more expensive than their current coverage, and thus they may dissuaded [sic] from immediately transitioning to such coverage.

Granted, insurance policies probably would have increased since the cost of care is increasing, but Obama said families could expect a reduction in premiums of $2,500. That’s the issue here. That’s one significant way he was able to sell this to the American people. Again, he lied to implement a political agenda.

The premiums started to go up – bending the cost curve up – as soon as Obamacare became law. Did people really think you could put a significant block of the countries population – 21 to 26-year-olds – on to their parents health plan at no cost? It does not work that way.

Let’s remind you of exactly what the president said in March 2010 during a stump speech to promote Obamacare. Of course we know he was claiming a $2,500 reduction in premiums, but he promised more. Here is the full transcript if you’re interested.

Now, so let me talk about the third thing, which is my proposal would bring down the cost of health care for families, for businesses, and for the federal government. So Americans buying comparable coverage to what they have today — I already said this — would see premiums fall by 14 to 20 percent — that’s not my numbers, that’s what the nonpartisan Congressional Budget Office says — for Americans who get their insurance through the workplace.

How many people are getting insurance through their jobs right now? Raise your hands.

All right. Well, a lot of those folks, your employer it’s estimated would see premiums fall by as much as 3,000 percent [sic], which means they could give you a raise.

Not only did he say Americans would see a 14 to 20 percent reduction, they would most certainly get a raise from their employer! Our president, the used car salesman…

Steve McGough

Steve's a part-time conservative blogger. Steve grew up in Connecticut and has lived in Washington, D.C. and the Bahamas. He resides in Connecticut, where he’s comfortable six months of the year.


  1. noreen2013 on November 15, 2013 at 10:05 am

    But now they are getting real’s like buying a car without wheels

    • Dimsdale on November 15, 2013 at 12:35 pm

      Not quite.? This was an argument used by Ebeneezer, excuse me, Ezekiel Emmanuel on several television shows in defense of ?bamacare.?? The difference is that I could choose whether or not to buy a car (with wheels), and I could choose a Corolla vs. a Lexus.?? ?bama is forcing us all to by a Lexus while falsely promising that we will only have to make the payments on a Corolla.?
      Don’t let the loose usage of the term “substandard” policy cloud your thinking; the policies that are being forcibly replaced were perfectly fine for most people, affordable and affording the coverage that they wanted and needed.? ?bama and the Dems, in true government think, believe that a “one size fits all” insurance policy is the answer.
      This is no more than statist trash thinking, akin to price fixing.

  2. bien-pensant on November 15, 2013 at 12:28 pm

    The American people are finding out they are being fleeced to fund the liberal dream. Obama sold what became the ACA as slickly as any used car salesman. Say anything to make the sale, then hide behind a blather of words and blame-shifting when the thing doesn’t work.
    Even the low information crowd is aware of his perfidy.

  3. Dimsdale on November 15, 2013 at 12:29 pm

    The subsidies will only affect the premiums for ?bamacare; what the preezy forgets is that the deductibles have gone through the roof, and that is the real cost that will be carried by the people.

    • cranky yankee on November 15, 2013 at 1:30 pm

      Dims or anyone else maybe you can answer this for me, when a obamacare policy is subsidized is the payment the subscriber makes discounted monthly or are you given a tax break when you file your taxes leaving the subscriber to pay the full payment without subsidy till April 15th. ?If its a tax break is the subsidy taxed as income earned? ?Just wondering

    • Dimsdale on November 15, 2013 at 3:10 pm

      Probably a question for SOS….

  4. jimd on November 15, 2013 at 1:43 pm

    I always had family health insurance through my employer.? In 2007 my wife passed away and my daughter was ineligible due to her age.? That left just me on this policy so I decided to try the VA.? I have never had such great health care.? I too had heard that it was terrible, but I wouldn’t trade this for the world.? I just hope it stays the same and will not be impacted by obamacare.? I think many people confuse the waiting on VA disability payouts with healthcare.? They are two different entities.? Obviously this won’t work for?a family as only the vet is covered.? Also, I can only speak for Connecticut – I go to the VA facilities in Newington and West Haven.

    • bien-pensant on November 15, 2013 at 3:43 pm

      Ditto! When I had commercial health insurance, I was always getting the minimum. At the VA in Connecticut, I get health care that is the wonder of all I speak with. My wife, a recent health insurance cancelee, is envious of and thankful for the absolutely best health care I now receive. It is world class.


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