Individual Claims Costs To Increase 32% Under Obamacare

Comment: The Society of Actuaries projects that Obamacare will raise the cost of claims in the individual healthcare market an average of 32 percent nationwide by 2017. Claims costs in California will rise more than 60 percent. But the largest increases will be in Wisconsin and Ohio (80 percent). See the first link below for the graphic for your state. It has been frequently observed that Obamacare will drive up the cost of medical services by increasing demand on existing providers. Now that observation is backed up by actuarial science. Once again, reality puts the lie to the claim that Obamacare supporters made in 2010 that their fantastical scheme would ‘bend the cost curve down’. From the report:

“Note that the ACA’s affect on premium is not modeled in this research; rather, long-term relative claims cost is modeled.”


“. … we estimate that health spending among the currently uninsured population would increase as they become insured. That is, savings from improved primary care would be more than offset by increased use of other care, including elective services. Overall, this method results in an estimated increase in utilization of about 100 percent in spending if the uninsured were to become insured.”

Cost of the Future Newly Insured under the Affordable Care Act (ACA)
MARCH 2013
Sponsored by Society of Actuaries


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