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Finally Conceding On Premiums

- March 28, 2013

With Rising Premiums, The Obama Administration Finally Admits That ObamaCare Will Not Bring Lower Premiums 

"The Obama Administration Acknowledged Tuesday That Some People Could See Their Premiums Rise Under The Health Care Reform Law." (Elise Viebeck, "Premiums Could Rise Under Health Care law, Sebelius Concedes," The Hill's Health Watch, 3/27/13)

HEALTH AND HUMAN SERVICES SECRETARY KATHLEEN SEBELIUS SAID HEALTH CARE PREMIUMS WILL RISE

Health And Human Services (HHS) Secretary Kathleen Sebelius Told Reporters That Health Care Premiums Will Rise. "Some people purchasing new insurance policies for themselves this fall could see premiums rise because of requirements in the health-care law, Health and Human Services Secretary Kathleen Sebelius told reporters Tuesday." (Louise Radnofsky, "Sebelius: Some Could See Insurance Premiums," The Wall Street Journal, 3/26/13)

  • Secretary Kathleen Sebelius: "These Folks Will Be Moving Into A Really Fully Insured Product For The First Time, And So There May Be A Higher Cost Associated With Getting Into That Market." "'These folks will be moving into a really fully insured product for the first time, and so there may be a higher cost associated with getting into that market,' she said." (Louise Radnofsky, "Sebelius: Some Could See Insurance Premiums," The Wall Street Journal, 3/26/13)
  • "Men And Younger Customers Could See Their Rates Increase" According To HHS Secretary Kathleen Sebelius. "She also said that some men and younger customers could see their rates increase while women and older customers could see their rates drop because the law restricts insurers' ability to set rates based on age and gender." (Louise Radnofsky, "Sebelius: Some Could See Insurance Premiums," The Wall Street Journal, 3/26/13)

Sebelius's Comments Are Among The First From The Obama Administration That ObamaCare Will Raise Premiums

"The Comment Was Among The First From The Obama Administration To Reveal A Degree Of Uncertainty About The Impact Of The Law On Insurance Premiums." (Elise Viebeck, "Premiums Could Rise Under Health Care law, Sebelius Concedes," The Hill's Health Watch, 3/27/13)

  • Sebelius Noted That "Americans Could Face Higher Premiums For Plans That Are More Generous." "The secretary's remarks are among the first direct statements from federal officials that people who have skimpy health plans right now could face higher premiums for plans that are more generous. She noted that the law requires plans to provide better benefits and treat all customers equally regardless of their medical claims." (Louise Radnofsky, "Sebelius: Some Could See Insurance Premiums," The Wall Street Journal, 3/26/13)

The Hill's Headline: "White House On Defense After Sebelius Remark On Health Law," (Justin Sink, "White House On Defense After Sebelius Remark On Health Law," The Hill's Health Watch , 3/27/13)

  • White House Deputy Press Secretary Josh Earnest Was Unable To Provide A Clear Answer On HHS Secretary Kathleen Sebelius's Comments That ObamaCare Will Increase Premiums. JOSH EARNEST: "I didn't see those comments. What I did see was actually a blog post from the Chairman of the President's Council on Economic Advisors, he said each year since 2009 to 2011, national health expenditure data shows that the real rate of annual growth in overall health spending is between 3 and 3.1 percent. That's actually the lowest rate of growth since reporting began in 1960." CNN'S BRIANNA KEILAR: "Do you see that for some people purchasing insurance? Do you concede that what Kathleen Sebelius reported it as? EARNEST: "What I would point you to, the results that we have already seen from the Affordable Care Act. A savings of $2.1 billion and the analysis from the CBO that says we are going to see rates lower for higher benefits. I didn't see her comments." (White House Deputy Press Secretary Josh Earnest, Press Briefing, Washington, D.C., 3/27/13)

IT DOESN'T LOOK LIKE OBAMA WILL FULFILL HIS OBAMACARE PREMIUMS PROMISE

Obama's Promise To Americans That ObamaCare Will Bring Down Health Premiums "Seems A Stretch Now." "Obama has promised that the new law will bring costs down. That seems a stretch now. While the nation has been enjoying a lull in health care inflation the past few years, even some former administration advisers say a new round of cost-curbing legislation will be needed." (Ricardo Alonso-Zaldivar, "Study: Health Overhaul To Raise Claims Cost 32 Percent," The Associated Press, 3/26/13)

  • As A Candidate, Obama Promised His Plan Would "Bring Down Premiums By $2,500 For The Typical Family." OBAMA: "And if you already have health insurance and you want to keep that health insurance, we will bring down premiums by $2,500 for the typical family. And we will prevent insurance companies from discriminating against those who need care the most." (Sen. Barack Obama, Remarks At Campaign Event, Raleigh, NC, 6/9/08)

Nonpartisan Study Finds That ObamaCare Will Cause Health Insurance Premiums To Increase

The Nonpartisan Society Of Actuaries Has Found That ObamaCare Will Increase Health Insurance Costs "By An Average Of 32 Percent Per Person." "The Society of Actuaries, a nonpartisan professional association, has issued a new report warning that the cost of medical claims in the new individual-insurance market could rise by an average of 32% per person over the first few years the law is in place, as more people with higher medical needs get coverage, and that the impact will be very different depending on the state. Medical bills are another key factor in determining premiums." (Louise Radnofsky, "Sebelius: Some Could See Insurance Premiums," The Wall Street Journal, 3/26/13)

  • The Premium Increases Come From ObamaCare's Affect On "Medical Claims Costs -- The Biggest Driver Of Health Insurance Premiums." "Medical claims costs - the biggest driver of health insurance premiums - will jump an average 32 percent for Americans' individual policies under President Barack Obama's overhaul, according to a study by the nation's leading group of financial risk analysts." (Ricardo Alonso-Zaldivar, "Study: Health Overhaul To Raise Claims Cost 32 Percent," The Associated Press, 3/26/13)

An "Overwhelming Majority" Of States Will Face Double-Digit Increases. "While some states will see medical claims costs per person decline, the report concluded the overwhelming majority will see double-digit increases in their individual health insurance markets, where people purchase coverage directly from insurers." (Ricardo Alonso-Zaldivar, "Study: Health Overhaul To Raise Claims Cost 32 Percent," The Associated Press, 3/26/13)

Former Medicare Chief Actuary Called The Actuaries' Findings And Estimations As "Credible." "But a prominent national expert, recently retired Medicare chief actuary Rick Foster, said the report does 'a credible job' of estimating potential enrollment and costs under the law, 'without trying to tilt the answers in any particular direction.'" (Ricardo Alonso-Zaldivar, "Study: Health Overhaul To Raise Claims Cost 32 Percent," The Associated Press, 3/26/13)

Recent Survey Found That ObamaCare Will Make Health Care Premiums For Americans Worse

Kaiser Family Foundation Poll Found That 49 Percent Of Americans Responded That ObamaCare Will Increase Their Families' Health Care Costs, Leaving Them Worse Off. (Kaiser Family Foundation Poll, 1,204 A, MoE 3%, 3/5-10/13)

  • 26 Percent Of Democrats Responded That ObamaCare Will Make Their Family Health Care Costs Worse, While 46 Percent Said They Would Stay The Same. (Kaiser Family Foundation Poll, 1,204 A, MoE 3%, 3/5-10/13)

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