We received the letter in the mail a couple months ago. The good people at Regence Bluecross Blueshield were pleased to inform us that due to Obamacare our current low-monthly premium, comically-high deductible medical policy would no longer exist come January 1, 2014. Pleased, because a new and better plan would be offered in its place. Old monthly premium: $578 for a family of four (non-smoking, helmet-wearing, and paternally snipped). New premium: $1,123. A 94% increase.
Once the sound of boiling blood dissipated, in my head I heard my Republican friends chuckling at the sight of a liberal Democrat hoisted ten stories high on his own petard. How’s the view up there, Obamacare Ollie?
For the past 15 years my wife and I have made our living as freelance writers. (To young readers, I say: Do not do this. Your bliss is marvelous, but its following will need to be supported by a banker, plumber, union machinist or tenured faculty member.) As such, our health insurance is our own concern. Over the years we’ve held on to our coverage by letting our co-pay and deductible rise and our covered procedures fall. You may be aware that the three-tiered state exchange policies are labeled Gold, Silver, and Bronze, reflecting their price and level of coverage. If our policy still existed it would fall into the column of Wood.
But Wood we had—and Wood we liked. (Read more.)
Judge Napolitano sums up the crisis, saying:
One of the reasons many Americans had their policies canceled this month is the failure of those policies to conform to the new federal minimum requirements. At the heart and soul of Obamacare is the power of bureaucrats to tell everyone what coverage to have. At the core of Obamacare is the removal of individual choice from the decision to purchase health care coverage. The goal of Obamacare is high-end coverage for everyone — brought about by Soviet-style central planning, not in response to free market forces.Share
From the perspective of the central planners who concocted Obamacare, minimum insurance coverage is the sine qua non of the statute. They want you to pay for coverage you will not need or ever use, so that the insurance carriers will have extra cash on hand to fund coverage for those who cannot afford high-end policies. This is where the laws of economics enter. By forcing all carriers to offer only high-end policies, the statute forced the carriers to raise their rates. By raising rates, the substandard policies — with their lower rates — could no longer be offered. If the government forced everyone to buy a Mercedes, when most are perfectly happy with an Acura, soon the Acuras would disappear from the market and most of us would be walking to work. (Read more.)