Young and Old Will Face Premium Spikes Next Year

With only six days to go before the Obamacare health exchanges are scheduled to open, the federal government finally released some price data for the federal exchanges. Even though Pennsylvania chose not to create its own exchange, state residents can still go to the federal exchange to shop for health insurance.

To no one’s surprise, premiums are going to spike under the federal exchange. It’s difficult to get a comprehensive picture of the rate spike since the Department of Health and Human Services only divulged a few details for select plans and population groups—so little data that the Manhattan Institute can’t even update their rate map.

However, they did analyze the select prices released and found that average rates for a 27 year old male in Pennsylvania will spike 63 percent and rates for a 40 year old male will jump 62 percent.

The Wall Street Journal notes the cheapest plan available to a 27 year-old male in Philadelphia will rise from $73 per month to $195 per month.

Avik Roy on his blog summarizes:

For months, we’ve heard about how Obamacare’s trillions in health care subsidies were going to save America from rate shock. It’s not true. If you shop for coverage on your own, you’re likely to see your rates go up, even after accounting for the impact of pre-existing conditions, even after accounting for the impact of subsidies.

The Obama administration knows this, which is why its 15-page report makes no mention of premiums for insurance available on today’s market. Silence, they say, speaks louder than words.

Clearly, the Affordable Care Act is not so affordable for average Pennsylvanians who don’t have insurance through their employer. It’s time to repeal the ACA and implement health care reforms that will lower the cost of care.