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Health & Fitness

Fact check: Kline is wrong about Obamacare and health insurance premiums

John ("One Note") Kline is a single issue candidate: repeal or delay Obamacare. http://insurancenewsnet.com/oarticle/2014/01/11/john-kline-statement-a-444838.html#.UtgVlrRRKCk In an editorial he wrote for Fox News, discussing Obamacare, http://www.foxnews.com/opinion/2013/10/01/broken-promises-massive-failures-as-obamacare-arrives/ he said that health insurance premiums will increase by up to 400 per cent. Wrong again.

To be sure, health insurance costs continue to increase. We must get health care costs under control. There are methods to do this. http://mn2020hindsight.org/view/health-care-spending-solutions But Obamacare is not the culprit.

According to the Minnesota Council of Health Plans, www.mnhealthplans.org there are approximately 5.1 million people eligible for health insurance in Minnesota. Health insurance premiums historically increase with the cost of health care, regardless of Obamacare. Average health insurance premium increases prior to Obamacare have been:

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2012    1.28%

2011    2.67%

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2010    4.86 %

2009    7.63%

2008    8.18%

These numbers are rough averages; costs for any one person vary widely based on many factors. Spending on health care has seen similar changes over the same time period.

The Minnesota Council has also projected premium increases for 2014, based on the impact of Obamacare:

Little or no change in premium 76% (3.7 million)

No insurance 9% (487,000)

Insurance through small companies 7% (348,000)

Self purchase 5% (275,000)

Mncare and similar 3% (167,000)

http://www.startribune.com/opinion/commentaries/221990161.html Only some people will experience a premium increase that they must pay for. Of the number of people insured through small companies, it estimated that 140,000 will experience an increase in premiums. It is difficult to estimate how many self insured will experience an increase in premiums. At maximum, 415,000 people in Minnesota may experience an increase in their health insurance premiums. This is 8.1 per cent of Minnesotans. None of this accounts for a) federal insurance premium subsidies; b) the ability to shop for less expensive premiums. Individuals earning up to $45,000, or a family of four earning up to $94,000 are eligible for federal subsidies. An estimated 35% of people are eligible for financial assistance with their premiums. http://www.startribune.com/opinion/commentaries/221990161.html And, in terms of shopping in the marketplace HHS estimates http://www.hhs.gov/news/press/2013pres/09/20130925a.html  that consumers will have an average of 53 insurance plans to choose from in every market.

Health insurers must file their rates with the Minnesota Department of Commerce. Many describe the rationale for their respective rate increases. Blue Cross, for example, cites these reasons for its premium rate increase:

·       Increase in statewide morbidity

·       Improved coverage and benefits

·       Health cost trends

·       New taxes and fees (attributable to ACA)

Certainly Obamacare has some impact here, but not to the extent Mr. Kline complains. Preferred One’s rate filing expresses similar issues.

Kline still wants to repeal or delay the Affordable Care Act. That train has left the station, and Kline is still standing on the platform. Many people have benefitted from the health law: those with pre-existing conditions, those who are eligible to remain on their parents’ plans, those who might otherwise have broken through the benefits cap on their plan because of catastrophic illness. Kline still wants to take these benefits away. Further, Kline alleges, without a factual basis, that school programs will be cut because of increased health care costs. Wrong again.

Mr. Kline is doing what conservatives do best: fear monger without a constructive alternative plan. That single, high pitched whine you hear? Ignore it. It is just “One note” Kline complaining again about Obamacare.





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