Nonsequitur: Obamacare Adds $270 Billion to Healthcare Overhead Costs

May 27, 2015

Why are insurers raising premium rates, sometimes by as much as 50%? Because their administrative costs are increasing under Obamacare, according to a recent study that compared costs with the ACA to estimated costs without the ACA. The total increase to overhead costs will top out at $273.6 billion. These “bloated administrative costs” will be present in both private and public (aka Medicaid) providers. The additional costs under the ACA average out to $1,375 per newly insured person per year. Of course, the majority of the newly insured will not be paying for their coverage, as the majority have been enrolled in Medicaid or in subsidized plans for “high risk” patients.

Under the ACA, you can’t keep your doctor, you can’t keep your plan, but you can, and will, pay more for out-of-pocket expenses, mostly for someone else’s insurance coverage.


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