Yesterday, September 13, 2011, Federal District Court Judge Christopher Connor in Harrisburg, PA ruled the individual mandate in ObamaCare to be unconstitutional along with two other sections of the law, which include making it illegal for companies to deny coverage based on pre-existing conditions and regulating insurance costs based on a community rather than an individual’s health history. Judge Connor did not strike down the entire law, but did deem the two additional sections as being non-severable from the individual mandate. Judge Connor was wise in doing so because without the individual mandate, insurance companies would have to raise premiums to an unaffordable rate for everyone if they were required to give coverage to those with pre-existing conditions without being able to raise individual rates to accommodate the coverage. This naturally would discourage individuals from purchasing insurance until their health required it. Eventually, premiums will be unaffordable for all and insurance companies would go out of business. Where do you think our health coverage will come from then? I’m sure the government will have no problem stepping in and “taking care of us”. The interesting thing is, one of ObamaCare’s apologists, Gorman Actuarial Economist, Jonathan Gruber from the Massachusettes Institute of Technology, was commissioned by Wisconsin’s State Health Services Department to assess how ObamaCare will affect Wisconsin, and he found it will raise premiums 41% on average for 87% of individuals before tax subsidies. Who do you think funds those tax subsidies…we do! It would be more cost efficient for us to pay the increase directly out of our pockets, but that, of course, would be too transparent and would undoubtedly convert some ObamaCare proponents into opponents.
In an effort to determine how ObamaCare would affect Wisconsin, the state’s Health Services Department commissioned Gorman Actuarial and economist Jonathan Gruber from the Massachusetts Institute of Technology to assess the program.
The review was ordered up by former Democratic Gov. Jim Doyle, a faithful ObamaCare supporter who has claimed the law will control health care costs. He now probably wishes he hadn’t asked for the analysis.
Under its “Key Findings” heading, the report says the market for individual policies “will experience premium increases as compared to pre-reform premiums.”
“Prior to the application of tax subsidies, 87% of the individual market will experience an average premium increase of 41%,” says the report. “The average increase for the entire individual market will be 30%.”
Never mind the false promise of tax subsidies to make up for it. They’ll be paid for by someone and represent a bending upward of the cost curve.
Even subsidies won’t help much. The report, titled “The Impact of the ACA on Wisconsin’s Health Insurance Market,” says that after subsidies, “59% of the individual market will experience an average premium increase of 31%.”
Also in line for increased costs is the small employer group, 53% of which “will experience a premium increase as compared to pre-reform premiums.” The average premium among those who belong to this group will go up by 15%.
That steep hill to universal coverage and lower costs that ObamaCare will supposedly conquer with its mandate that the uninsured buy insurance and its phony cost-containment provisions gets even steeper.