Obamacare High Insurance Rates 'Overblown' by Studies

| by Michael Allen
article imagearticle image

Enrollment in Obamacare begins on October 1, so there has been a strong push-back from corporations and conservatives to scare the American public in hopes of somehow repealing or defunding the U.S. law.

Numerous studies from conservative think tanks have warned how Obamacare is going to increase health insurance rates, but a new study by the Rand Corporation says just the opposite.

"The rate-shock concerns were overblown. It's likely the effect will be small," Christine Eibner, a senior economist at Rand, told USA Today.

The report says, with Obamacare, employees at companies with fewer than 100 workers will likely pay about 6 percent less in health insurance premiums in 2016 than they would without Obamacare.

According to Rand's study, the average premium for equal plans in 2016 will be $5,837 with Obamacare and $6,192 without it.

Of course, ultimately, the choice to raise rates or lower rates rests solely with the health insurance companies themselves, a fact that is rarely, if ever, mentioned. Obamacare does not dictate health insurance prices, but rather sets up a market exchange where people can purchase the plan they want.

Source: USA Today