For months the Obama administration has been downplaying the impact of rising insurance premiums on the ObamaCare exchanges because they contend most people get subsidies. Clearly they are not concerned about those who don’t get subsidies.
But now comes a report from Robert Laszewski, insurance industry analyst, that says about half of enrollees receive no subsidy. He writes of an article in the September 2016 issue of the trade publication, The AIS report on Blue Cross and Blue Shield Plans by reporter Steve Davis. Davis called a number of Blue Cross plans and asked how many of their ObamaCare individual health insurance policyholders get a subsidy and how many do not. The results are illuminating.
Who is telling the truth?
The Obama administration continues to claim that 85% of exchange participants get a subsidy. Laszewski says that about half of the ObamaCare individual market does not get a subsidy when you include all of those customers that purchase their individual health insurance policies off the exchange. Which one is correct?
An Obama administration spokesperson recently said, “Even in a scenario where all plans saw double-digit rate increases, the vast majority of consumers would continue to have affordable plans.” Is that true?
Davis found the following results in his survey:
- Anthem – 784,550 with a subsidy; 1,015,450 without a subsidy
They have enrolled about 1.8 million in 2016. About 923,000 purchased their policy through an exchange; the other 877,000 are covered by an individual policy purchased outside an exchange. Using the CMS estimate of 85% receiving a subsidy on the exchange, that comes to 784,550 leaving 1,015,450 without a subsidy.
- Health Care Services Corp. – 881,000 with a subsidy; 818,550 without a subsidy
They enrolled 1.7 million individuals and say 61% purchased their insurance on the exchanges. Using the same 85% estimate, they have 881,000 receiving subsidies and the remaining 818,550 do not receive subsidies.
- Arkansas Blue Cross and Blue Shield – 182,980 with a subsidy; 92,206 without a subsidy.
- Blue Cross Blue Shield of Louisiana – 63,000 with a subsidy; 143,793 without a subsidy
- Blue Cross Blue Shield Of Michigan – 136,000 with a subsidy; 106,000 without a subsidy
- CareFirst blue Cross blue Shield – 99,529 with a subsidy; 175,641 without a subsidy
- Independence Blue Cross – 107,000 with a subsidy; 73,000 without a subsidy
In all, Davis surveyed 26 states and found about 2.3 million received subsidies and 2.4 million did not receive subsidies. That’s roughly 48% receiving subsidies, 48% not receiving subsidies, and about 4% are in grandfathered/transitional plans that remain from the pre-ObamaCare days but do not receive subsidies.
That means about half of all Americans who must purchase their health insurance on the individual market are suffering the full consequences of the rapidly rising insurance premiums of this healthcare system disaster. If you’re paying the full price of ObamaCare – you’re not alone. The Obama administration doesn’t want to acknowledge this reality.
Next post we’ll discuss the reality of rising insurance premiums just released for the 2017 calendar year – and see just how bad ObamaCare can get!