Photo Credit: Washington Examiner In 2007, candidate Barack Obama declared, “I will sign a universal health care bill into law by the end of my first term as president that will cover every American and cut the cost of a typical family’s premium by up to $2,500 a year.” As president, he signed national health care legislation that is formally known as the Patient Protection and Affordable Care Act, popularly known as Obamacare. But according to a new report from Congressional Republicans, the law will actually cause premiums to more than double for some Americans.
The report, which is based on a compilation of independent studies on the effect of the law’s new regulations, finds that Obamacare could increase premiums by 40 percent on average and by as much as 202 percent for young adults living in Chicago.
There are several ways the health care law puts upward pressure on premiums. It requires insurers to offer coverage to everybody who applies, regardless of pre-existing conditions. It limits the amount that companies can adjust prices based on health status. It also requires that every American purchase a health insurance policy that meets federal specifications regarding the level of benefits covered. In addition, the law imposes $165 billion of tax increases on health insurance, drug manufacturers and medical device-makers. These policies work together to drive up the cost of insurance, especially on younger and healthier Americans.
It’s true that the law also offers subsidies to individuals to purchase insurance. But those subsidies are phased out for individuals earning more than $46,000. The report anticipates, “Even after receiving subsidies, Americans earning as little as $25,000 will still pay more.”
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