Americans have every right to be worried. Come January 1, 2014 and for years to come, their health insurance premiums will implode, their taxes will increase, and the nation's deficit will soar-all thanks to President Obama, those who voted him and Democratic Congressmen who voted for ObamaCare.
Americans can expect individual premiums to become unaffordable. According to a new report released by the House Energy and Commerce Committee, ObamaCare will increase individual health insurance premiums by an average of nearly 100 percent. In some cases, premiums could rise by 400 percent. The committee prepared the report based on internal documents they received from some of the nation's largest health insurance companies. "The average yearly cost for a new customer in the individual market grows from $1,896 to $3,708-a $1,812 cost increase," the report states.
The Committee projections were right. Last week, for example, Covered California-the name for the state's insurance exchange-released the rates that Californians will have to pay to enroll in the exchange-an increase of up to 146 percent for individual premiums.
Health insurance costs will go up because medical claims costs will become more expensive to process due to ObamaCare regulations. The nonpartisan Society of Actuaries recently released a report stating that ObamaCare will cause medical claims costs to increase an average of 32 percent for individual policies. By 2017, it estimated that the increases will be around 62 percent for California, 80 percent for Ohio, and 67 percent for Maryland, for example-and these are conservative estimates.
The cost to implement ObamaCare will significantly increase the deficit. The nonpartisan Government Accountability Office (GAO) recently released a report that ObamaCare will increase the long-term federal deficit by $6.2 trillion. The report concluded that even under "more optimistic assumptions," ObamaCare's cost-control provisions "were not sufficient to prevent an unsustainable increase in debt held by the public."
Not only will the deficit increase, but taxes to pay for ObamaCare will as well. The nonpartisan Congressional Budget Office (CBO) projects that ObamaCare will generate $1 trillion of new tax revenue between 2013 and 2022. Taxes and fines will fall on employers who fail to provide health care to their employees, health care companies, including drug and medical device manufacturers, and insurance providers-which will all be passed on to the consumer, driving costs up.
Once the law is fully implemented, it is expected to generate $55 billion in penalty payments from uninsured individuals and $106 billion of penalty payments from employers over the coming decade, according to the CBO and Joint Committee on Taxation.
Don't forget that the trusted IRS is tasked with enforcing ObamaCare and that every taxpayer will have to submit their health insurance information with their taxes.
What can be done? Can Congress repeal this train wreck before it derails? Not really. Anything Congress passes would be vetoed by Obama. And Congress doesn't have the votes to override a veto.
Voters got what they voted for. The only way to repeal ObamaCare would have been to repeal Obama in the 2012 general election. Unfortunately, the majority of voters reelected Obama, essentially guaranteeing ObamaCare as a reality. After January 1, 2014, it will become even more difficult to roll back. Insurers will no longer be able to offer catastrophic coverage, and employers will either pay the fine to not provide comprehensive coverage to their employees or not provide full-time employment. By only employing part-time workers, taxpayers will have to pay more to subsidize those who buy insurance through the exchanges, thereby increasing the deficit even further.
Even if Republicans were to win the White House and both chambers of Congress in 2016, it will be too late to undo the damage. Both the insurance markets and employment paradigms will have shifted too much by that time. President Obama's legacy will be that of economic disaster, but by destroying health insurance as we know it, every American will pay dearly for his fool-heartiness.