HHS Report Shows Rising Costs Of Obamacare

Date: April 14, 2016

Obamacare Continuing To Hurt Small Businesses Through Burdensome Regulations, Costs

As debate over Obamacare continues, the Department of Health and Human Services on Tuesday issued a report showing the costs of Obamacare premiums for 2015. The Hill reports that the data showed that Obamacare premiums rose by “8 percent on average – from $356 a month to $386 a month – from 2015 to 2016,” and when the ACA “tax credits that help 85 percent of consumers afford their plans are factored in, the average premium increase was even smaller: $102 to $106, or 4 percent.” The Hill notes that while these increases were less than some projections, “there are still some warning signs” about future cost increases. Insurers have been stating that “in most markets they are still losing money on the ObamaCare marketplaces, a point that could help them try to justify substantial premium increases next year,” and UnitedHealth is among insurers that has warned it might leave Obamacare marketplaces due to lost revenue. Congressional Quarterly reports that commenting on the report, Clare Krusing, a spokeswoman for America’s Health Insurance Plans, “suggested that plans are facing uncertainty in the new marketplaces that can affect premiums.”

What This Means For Small Businesses

Despite the HHS attempting to justify Obamacare by suggesting premiums increased at a lower rate than expected, the bottom line is that the burdensome healthcare mandate is costing small businesses. The New York Times, in a front page analysis, recently highlighted a new Congressional Budget Office report that examined the effects of Obamacare on employer insurance policies. The CBO’s data indicated that costs have driven small businesses to significantly reduce their healthcare coverage, and that small businesses are the most sensitive to rising healthcare costs. Whether premiums rise $4 or $400, small business owners will be left feeling the pinch.

Additional Reading

The Huffington Post and the Washington Examiner also covered the new HHS report.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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