Study: Many Insurance Premiums to Rise By Double Digits Under ObamaCare

Earlier today I mentioned a new study by the
Society of Actuaries estimating that insurance company claims will
rise substantially under ObamaCare. With higher claims will come
higher premiums: Nationwide, the study estimates that individual
market premiums will rise by an average of 32 percent.

The Associated Press has
more details on the study: 

The study says claims costs will go up largely because sicker
people will join the insurance pool. That’s because the law forbids
insurers from turning down those with pre-existing medical
problems, effective Jan. 1. Everyone gets sick sooner or later, but
sicker people also use more health care services.

“Claims cost is the most important driver of health care
premiums,” said Kristi Bohn, an actuary who worked on the study.
Spending on sicker people and other high-cost groups will overwhelm
an influx of younger, healthier people into the program, said the
report.

The 32 percent hike in claims is a national average. In some
states, premium hikes will actually be much higher, the study
projects. 

While some states will see medical claims costs per person
decline, the report concluded that the overwhelming majority will
see double-digit increases in their individual health insurance
markets, where people purchase coverage directly from insurers.

The differences are big. By 2017, the estimated increase would
be 62 percent for California, about 80 percent for Ohio, more than
20 percent for Florida and 67 percent for Maryland. Much of the
reason for the higher claims costs is that sicker people are
expected to join the pool, the report said.

And in Washington, D.C., the study projects that individual
market premiums will rise
by 52 percent.

The White House still
insists that the law will result in "more affordable
coverage."