It seems that the CEOs of some major health insurance providers are set to gouge consumers again with massive premium increases in order to stay in business.
Oh wait. The increases are due to new government mandates from the recently-passed Obamacare law you say? But how can that be? We all know that CEOs, like Charlie Baker was, are raising rates to expand their own personal wealth and not because their increased costs get passed on to consumers as a normal, sound business decision right? I mean, they’re evil, greedy bastards right? Couldn’t have anything to do with an over-regulated marketplace could it? Nah.
(Couldn’t get to the original WSJ link so I’m quoting the quotes from the HotAir piece.)
Health insurers say they plan to raise premiums for some Americans as a direct result of the health overhaul in coming weeks, complicating Democrats’ efforts to trumpet their signature achievement before the midterm elections.
Aetna Inc., some BlueCross BlueShield plans and other smaller carriers have asked for premium increases of between 1% and 9% to pay for extra benefits required under the law, according to filings with state regulators.
These and other insurers say Congress’s landmark refashioning of U.S. health coverage, which passed in March after a brutal fight, is causing them to pass on more costs to consumers than Democrats predicted.
Weeks before the election, insurance companies began telling state regulators it is those very provisions that are forcing them to increase their rates.
The White House has already accused these insurers of unfair pricing, but that just proves that the administration didn’t understand the industry they wanted to run themselves. Front-loading new benefit mandates means higher costs for insurers. Insurers pass higher costs to consumers in premium increases. If there were no costs associated with these new benefit mandates, they wouldn’t have had to been mandated in the first place. This is Econ 101, and yet no one in the Obama administration appeared to have realized what “front-loading” new benefits would mean.