Obamacare Continues to Not Be Doomed

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Veronique de Rugy predicts disaster for Obamacare once again:

The bottom line is that after slow start, insurance companies find themselves having to increase premiums a fair amount. It seems that while for now subsidies may cover the pain for individuals, they probably won’t be able to after this year, at which point insurance companies will have to stomach the full cost of their losses due to the expiration of the reinsurance and risk-corridor programs. There soon won’t be enough subsidies to offset the premium hikes.

We’ve heard this pretty much every year: insurers are requesting huge premium increases! We’re doomed! Perhaps a bit of perspective would be helpful:

  • Insurers lowballed their Obamacare prices initially, coming in with premiums that were less costly than CBO projections. Higher prices were always inevitable.
  • Every year, insurers request big increases. They don’t get them. They get moderate increases.
  • Whatever happens, this is the free market at work, not some defect in Obamacare. If high premiums are truly what conservatives care about, we can fix that any time we want. Just ask Canada how to do it—or Sweden or Germany or Spain or Japan or pretty much any other advanced country on the planet.

Life isn’t perfect. Obamacare isn’t perfect. Health care is an expensive service, and health care insurance is expensive too. But so far Obamacare has done a pretty good job of keeping costs reasonably well contained. I’d wait until the end of the year before yet again declaring that it’s a failure and yet again being wrong.

HERE ARE THE FACTS:

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ONE MORE QUICK THING:

Our fall fundraising drive is off to a rough start, and we very much need to raise $250,000 in the next couple of weeks. If you value the journalism you get from Mother Jones, please help us do it with a donation today.

As we wrote over the summer, traffic has been down at Mother Jones and a lot of sites with many people thinking news is less important now that Donald Trump is no longer president. But if you're reading this, you're not one of those people, and we're hoping we can rally support from folks like you who really get why our reporting matters right now. And that's how it's always worked: For 45 years now, a relatively small group of readers (compared to everyone we reach) who pitch in from time to time has allowed Mother Jones to do the type of journalism the moment demands and keep it free for everyone else.

Please pitch in with a donation during our fall fundraising drive if you can. We can't afford to come up short, and there's still a long way to go by November 5.

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