The real cost of Obamacare

Whether you have your own health insurance, or, have your health insurance through your small business employer, get ready to pay a great deal more for that insurance should Obamacare become law.

For the past five months I have posted many articles about provisions of the proposed Obamacare legislation that will clearly cost you money.  But, to date, I have not been able to quantify that cost for you.  Now, thanks to a recent study released by WellPoint, I can.

WellPoint mined its own actuarial data to model ObamaCare in the 14 states where it runs Blue Cross plans. The study therefore takes into account market and demographic differences that other industry studies have not…

The results of this study are not pretty.

A healthy 25 year old male living in Columbus, Ohio currently pays about $52 per month for insurance.  Here is what Obamacare will do to his premiums.

First, add $79 per month because Obamacare requires all insurers to to cover anyone who applies regardless of their current health condition.  This is the piece of Obamacare that “ensures” that those with pre-existing conditions can obtain insurance.

Second, add $3 per month because Obamacare requires insurance companies to charge virtually the same premium to all insureds, regardless of health, age, etc.

Third, add $17 per month because Obamacare will mandate what must be included in your insurance policy (whether you want or need that coverage, or not) in order to have a “qualified” plan.  This will let you avoid paying a tax for having the audacity to have a “non-qualified” plan.

And finally, add $6 per month to cover the cost of the $80 billion in new non-deductible taxes on insurance companies that Obamacare also mandates.

So, under Obamacare, our young man from Columbus, Ohio will now pay $157 per month for his insurance, a svelte 199% increase!

Of course, this study doesn’t take into account the increased costs resulting from the $20.3 billion in new nondeductible taxes on drug manufacturers and importers, or the $40 billion in new taxes on medical device manufacturers.  But, as they say, at this point, who’s counting?

Posted in


The Sound Off Sister was an Assistant United States Attorney for the Southern District of Florida, and special trial attorney for the Department of Justice, Criminal Division; a partner in the Florida law firm of Shutts & Bowen, and an adjunct professor at the University of Miami, School of Law. The Sound Off Sister offers frequent commentary concerning legislation making its way through Congress, including the health reform legislation passed in early 2010.


  1. Dimsdale on October 29, 2009 at 6:47 am

    So all my fees and premiums will go up precipitously, but my taxes "won't go up one dime", right?


    And the verbal sleight of hand is amazing: you don't raise the deficit if you pass all the costs onto the innocent (and grossly uninformed) policy holders.  And make them pay for those that can't, won't or don't bother to buy insurance.


    Wonder what I will be able to buy with that dime Obama is saving me?

The website's content and articles were migrated to a new framework in October 2023. You may see [shortcodes in brackets] that do not make any sense. Please ignore that stuff. We may fix it at some point, but we do not have the time now.

You'll also note comments migrated over may have misplaced question marks and missing spaces. All comments were migrated, but trackbacks may not show.

The site is not broken.