Contribute
Connect:

research

Obamacare's Worst Hits

- March 12, 2017

Since Enactment, Obamacare Has Led To Higher Healthcare Costs, Job Loss, And Cancelled Coverage


TOP TAKEAWAYS

  • Obamacare resulted in the loss of jobs and shorter hours.
  • Obamacare caused premiums to soar throughout the country, placing a large cost burden on people trying to pay for coverage.
  • Obamacare caused thousands to lose their health insurance plan despite President Obama's pledge that "if you like your doctor, you can keep your doctor."

OBAMACARE HAS RESULTED IN LOST JOBS AND LOWER WAGES

Obamacare Has Forced Employers To Cut Jobs

Employers Burdened By Obamacare Have Laid Off Employees To Manage Costs, Or Shifted Employees To Part-Time Status. "Across the country, employers in many other kinds of businesses are devising strategies to comply with or, in some cases, sidestep a new requirement to provide insurance for those who work 30 hours or more. Some are breaking their businesses into smaller companies, for instance, or even laying off workers. Some companies plan to shift workers to part-time status." (Sarah Varney, "Tacking Health Care Costs Onto California Farm Produce," The New York Times , 8/21/13)

  • One Fifth Of Service Sector And Manufacturing Company Executives Have Stated They Have To Reduce The Workers At Their Firms Because Of Obamacare. "Roughly one-fifth of service sector and manufacturing company executives said they are reducing the number of workers in response to provisions in the healthcare law, according to the Empire State Manufacturing Survey and the Business Leaders Survey." (Vipal Monga, "Fed Survey: Obamacare Causing Companies To Cut Jobs," The Wall Street Journal , 8/16/16)

Obamacare Has Forced Employers To Cut Hours

According To The Congressional Budget Office, 2 Million Jobs Worth Of Hours Will Be Lost By 2025 Due To Obamacare. "Obamacare will force a reduction in American work hours - the equivalent of 2 million jobs over the next decade, Congress's nonpartisan scorekeeper said Monday." (Sarah Ferris, "CBO: 2 Million Jobs' Worth Of Hours Lost Under Obamacare," The Hill , 12/7/15)

Many Employers Around The Country Have Reduced Employee Hours Because They Are Unable To Afford Obamacare. "Employers around the country, from fast-food franchises to colleges, have told NBC News that they will be cutting workers' hours below 30 a week because they can't afford to offer the health insurance mandated by the Affordable Care Act, also known as Obamacare." (Lisa Myers and Carroll Ann Mears, "Businesses Claim Obamacare Has Forced Them To Cut Employee Hours," NBC News , 8/13/13)

  • Nearly All Of The Small Businesses That NBC News Reached Out To In 2013 Said That Because Of Obamacare "They'd Be Cutting Back Hours For Some Employees." "NBC News spoke with almost 20 small businesses and other entities from Maine to California, and almost all said that because of the new law they'd be cutting back hours for some employees - an unintended consequence of the new law." (Lisa Myers and Carroll Ann Mears, "Businesses Claim Obamacare Has Forced Them To Cut Employee Hours," NBC News , 8/13/13)
  • A Reuters Analysis Found That Businesses Are Cutting Back Worker Hours And Choosing Not To Expand Their Business Past 50 Employees "To Avoid Providing Health Insurance For Employees." "Some businesses are holding their headcount below 50 and others are cutting back the work week to under 30 hours to avoid providing health insurance for employees, according to the staffing and payroll executives." (Lucia Mutikani, "Analysis: Obamacare, Tepid U.S. Growth Fuel Part-Time Hiring," Reuters , 8/21/13)
  • The Chamber Of Commerce Found That Nearly 60 Percent Of Small Franchise Businesses Would Make Many Workers Part-Time To Avoid Paying For Health Coverage . "And some fast-food franchise owners figured out a way to avoid paying for coverage: Just make as many workers as possible part time. A U.S. Chamber of Commerce survey found nearly 60 percent of small franchise businesses said they would make personnel changes like this." (April Dembosky, "Bosses Find Part-Time Workers Can Come With Full-Time Headaches," NPR , 2/1/16)

Instead Of Paying Hundreds Of Thousands Of Dollars In Health Care Costs, Cities, Counties, Schools, And Colleges Are Reducing The Hours Of Their Part-Time Employees. "Cities, counties, public schools and community colleges around the country have limited or reduced the work hours of part-time employees to avoid having to provide them with health insurance under the Affordable Care Act, state and local officials say." (Robert Pear, "Public Sector Cuts Part-Time Shifts To Bypass Insurance Law," The New York Times , 2/20/14)

AFL-CIO President Richard Trumka Said That Obamacare Is Causing Businesses To Cut Employee Hours. AL JAZEERA's LIBBY CASEY: "Richard Trumka, head of the AFL-CIO recently told David Shuster on 'Talk to Al Jazeera' that law is having unintended consequences on American businesses and workers." RICHARD TRUMKA: "The Affordable Care Act does need some modifications to it. Because as it does right now, what's happening is you have employers that the law says if your employees work 30 hours or more a week you got to give them health care. So, they're restructuring their workforce to give 29 and a half hours so they don't have to provide them health care." (Al Jazeera's " Al Jazeera America," 9/2/13)

OBAMACARE HAS RESULTED IN HIGHER PREMIUMS

Obamacare Premiums Have Risen Dramatically Each Year

Nationally, The Average Premium Hike For The Benchmark Plan Is 25 Percent For 2017. "Across states using the HealthCare.gov platform, the median increase in the second-lowest cost silver plan premium is 16 percent, while the average increase is 25 percent." ("Health Plan Choice And Premiums In The 2017 Health Insurance Marketplace," Department Of Health And Human Services , 10/24/16)

Nationally, The Average Premium Hike For The Benchmark Plan Was 10 Percent For 2016. "The table below presents an update to our previous analysis of 2016 changes in premiums for the second-lowest cost ('benchmark') silver marketplace plans in major cities in all 50 states and the District of Columbia. Among these major cities, the percent change from last year in the benchmark premium ranges from -10.6% in Seattle, Washington to 38.4% in Nashville, TN. The simple average of these rate changes is 10.1% before accounting for the premium tax credit." (Cynthia Cox, Selena Gonzales, Rabah Kamal, Gary Claxton, And Larry Levitt, "Analysis Of 2016 Premium Changes In The Affordable Care Act's Health Insurance Marketplaces," Kaiser Family Foundation , 10/26/15)

Nationally, The Average Premium Hike For The Benchmark Plan Was 9 Percent For 2015. "Many health-care plans are also charging more, with Investor's Business Daily finding that a 27-year-old earning 250 percent of the poverty rate will pay an average of 7 percent more for the lowest-cost bronze plan, based on an analysis of rates in the largest city in 34 states. The lowest-cost silver plan will rise an average of 9 percent, while the lowest-priced catastrophic policy will climb 18 percent, the analysis found." (Aimee Picchi, "Obamacare 2015: Higher Costs, Higher Penalties," CBS News , 11/12/14)

These Rising Premiums Have Had The Largest Impact On Those Who Do Not Qualify For Subsidies

CNN Headline: "Rising Obamacare Premiums Anger Those Paying Full Price." (Virginia Anderson, "Rising Obamacare Premiums Anger Those Paying Full Price," CNN , 10/15/16)

"About 10 Million Americans Buy Individual Insurance Coverage… And Get No Federal Subsidies To Help Bring Down The Cost." "About 10 million Americans buy individual insurance coverage either on or off the exchanges and get no federal subsidies to help bring down the cost, according to the Congressional Budget Office. About the same number get the financial assistance for the plans they purchase on the exchanges." (Virginia Anderson, "Rising Obamacare Premiums Anger Those Paying Full Price," CNN , 10/15/16)

People Who Do Not Get Subsidies Are Not Protected From Premium Increases, Thus "The More Premiums Go Up, The Higher The Cliff." "'For those receiving subsidies, the subsidy protects them against the increase. If they're not eligible, they'll be paying a lot more. And the more premiums go up, the higher the cliff,' said William Custer, a health policy and insurance expert at Georgia State University." (Virginia Anderson, "Rising Obamacare Premiums Anger Those Paying Full Price," CNN , 10/15/16)

Even People Who Have Tried To Switch To Plans With Better Prices Have Faced Double-Digit Premium Hikes, With Those Choosing To Stick With Their Current Plan Forced To Accept Higher Costs

For 2017 Obamacare Plans, Even People Who Switched Plans For Better Prices Faced An Average Premium Increase Of 11 Percent. "In the last few years, even though premiums in the Affordable Care Act's health insurance marketplaces were rising, most customers could avoid a big price rise by shopping for a cheaper plan. Next year, according to a preliminary analysis, that is going to be a lot harder. Even someone who shopped wisely this year and is willing to switch plans to get the best deal next year is looking at an average premium increase of 11 percent, according to an analysis of rate filings in 18 states and the District of Columbia provided by the McKinsey Center for U.S. Health System Reform." (Margot Sanger-Katz, "Obamacare Premiums Set To Rise, Even For Savvy Shoppers," The New York Times , 9/1/16)

"To Get The Best Deal, More Than Half Of Last Year's Bargain Hunters Will Need To Switch." "To get the best deal, more than half of last year's bargain hunters will need to switch. The plans that were least expensive this year in the popular 'silver' category are no longer the price leaders in most markets, according to the analysis." (Margot Sanger-Katz, "Obamacare Premiums Set To Rise, Even For Savvy Shoppers," The New York Times , 9/1/16)

"People Who Want To Stay In Their Current Plan… Could Face Much Larger Increases." "People who want to stay in their current plan - either because they like the coverage or want to keep a certain group of doctors and hospitals - could face much larger increases." (Margot Sanger-Katz, "Obamacare Premiums Set To Rise, Even For Savvy Shoppers," The New York Times , 9/1/16)

Prices Have Gone Up As Insurers Have Taken On Customers That Were "More Costly Than Expected," Resulting In A Net Loss Of $2.7 Billion

Prices Have Dramatically Risen As Insurers Adjust Premiums "After Finding That The Pool Of Clients Buying Plans On The Individual Market And More Costly Than Expected" When Obamacare Was Implemented. "While consumers have faced sticker shock, the insurers have faced what might be called 'sicker shock,' which has sent their prices spiraling. They are adjusting premiums after finding that the pool of clients buying plans on the individual market were sicker and more costly than expected when the health law was implemented." (Virginia Anderson, "Rising Obamacare Premiums Anger Those Paying Full Price," CNN , 10/15/16)

Insurance Companies Lost $2.7 Billion On The Individual Market "Because They Had To Pay For More Claims Than Expected." "A 2015 report from consulting firm McKinsey & Co. found that insurance companies lost $2.7 billion on the individual market, in part because they had to pay for more claims than expected." (Dr. Alex Weller and Margaret Chadbourn, "Why Health Care Premiums Are Rising Under Obamacare," ABC News , 10/25/16)

Despite Government Programs To Redistribute Insurance Risk, "Not All Companies Have Benefited, Resulting In Continued Losses." "While the government has several programs to help redistribute insurance risk, not all companies have benefited, resulting in continued losses." (Dr. Alex Weller and Margaret Chadbourn, "Why Health Care Premiums Are Rising Under Obamacare," ABC News , 10/25/16)

"The Disparity Between Predicted And Actual Costs For Insurers Means Some Insurers Are Making Less Money Than Predicted From 'Obamacare' Programs." (Dr. Alex Weller and Margaret Chadbourn, "Why Health Care Premiums Are Rising Under Obamacare," ABC News , 10/25/16)

CONTRARY TO PRESIDENT OBAMA'S PLEDGE, OBAMACARE HAS CAUSED THOUSANDS TO LOSE THEIR HEALTH COVERAGE

President Obama Made A Pledge That Americans Could Keep Their Plan Under Obamacare

In 2009, President Obama Pledged That Under The Terms Of His Healthcare Reform Proposal, Americans Would Be Able To Keep Their Current Plan And Current Doctor. PRESIDENT OBAMA: "This week, I conveyed to Congress my belief that any health care reform must be built around fundamental reforms that lower costs, improve quality and coverage, and also protect consumer choice. That means if you like the plan you have, you can keep it. If you like the doctor you have, you can keep your doctor, too." (President Obama, Remarks Of President Barack Obama Weekly Address , Washington, D.C., 6/9/09)

As Obamacare's Provisions Began To Take Effect, This Promise Was Broken As Thousands Had Their Health Coverage Cancelled

Obamacare Required Individuals To Purchase An Obamacare-Compliant Plan By January 1, 2014. "Anyone who bought a health insurance plan after March 23, 2010 would eventually have to enroll in a new plan that met all of the new standards of the Affordable Care Act. The original deadline for this transition was January 1, 2014 or on a plan's renewal date within the 2014 plan year." ("History And Timeline Of The Affordable Care Act," eHealth , 9/22/16)

Millions Of Americans Lost Their Health Plans Because They Failed To Meet Obamacare's Strict Requirements. "Millions of Americans who buy their own health insurance were informed this fall that their policies would no longer be offered starting in 2014 because they do not meet the higher standards of the federal Affordable Care Act." ("Policy Notifications And Current Status, By State," The Associated Press , 12/26/13)

  • In Total, At Least 4.7 Million Americans Had Their Health Coverage Canceled. "President Barack Obama then said insurance companies could allow the older policies to continue, but left that decision to the states and individual insurers. The response has been mixed. This chart shows that at least 4.7 million Americans received the cancellation notices. It also provides details about what decision has been made in each state since Obama's announcement (some states had previously decided to allow insurers to continue older policies for a limited time)." ("Policy Notifications And Current Status, By State," The Associated Press , 12/26/13)

"More Than 1,200 Employers" Dropped Their Employer Sponsored Health Care Plans Because Of Obamacare. "The U.S. arm of Sweden's Securitas AB SECU-B.SK is among more than 1,200 employers that offer the kind of bare-bones health plans that must be phased out beginning Jan. 1 under the health-care law." (Scott Thrush, "Firms Drop, Rather Than Upgrade, Cheapest Health Plans," The Wall Street Journal , 9/25/13)

  • The Nation's Largest Provider Of Security Guards Discontinued Its Lowest-Cost Health Plans, Impacting 55,000 Employees Who Had To Find New Health Insurance. "The nation's largest provider of security guards plans to discontinue its lowest-cost health plans and steer roughly 55,000 workers to new government-sponsored insurance exchanges for coverage next year, in the latest sign of the fraying ties between employment and health care." (Scott Thrush, "Firms Drop, Rather Than Upgrade, Cheapest Health Plans," The Wall Street Journal , 9/25/13)
  • Home Depot Ended Medical Coverage For About 20,000 Part-Time Employees To Meet Obamacare's Requirements. "Home Depot Inc. (HD), the world's largest home improvement retailer, plans to end medical coverage for about 20,000 part-time employees and direct them to government-sponsored exchanges scheduled to open next month as companies revamp benefits to fit the U.S. Affordable Care Act." (Chris Burritt, "Home Depot Sending 20,000 Part-Timers To Health Exchanges," Bloomberg , 9/19/13)
  • Due To Obamacare And Rising Health Care Costs Walgreens Shifted Its Employees From Their Employee Health Plans To Private Insurance Exchanges. "Rising health-care costs and a climate of change brought about by the new federal health law are prompting American corporations to revisit the pact they've long had with employees over medical benefits. … On Wednesday, the drugstore giant is expected to disclose a plan to provide payments to eligible employees for the subsidized purchase of insurance starting in 2014." (Timothy W. Martin and Christopher Weaver, "Walgreen To Give Workers Payments To Buy Health Plans," The Wall Street Journal , 9/18/13)
  • As A Result, 160,000 Employees Lost Their Coverage. "The plan will affect roughly 160,000 employees, and will require them to shop for coverage on a private health-insurance marketplace." (Timothy W. Martin and Christopher Weaver, "Walgreen To Give Workers Payments To Buy Health Plans," The Wall Street Journal , 9/18/13)

 


Previous post

Obamacare's Lack Of Choice

Next post

What They Are Saying About President Trump’s “Great” Jobs Report
News & Videos
  • 310 First Street SE, Washington, DC 20003
  • 202-863-8500

By providing your phone number, you are consenting to receive calls and SMS/MMS msgs, including autodialed and automated calls and texts, to that number from the Republican National Committee. Msg&data rates may apply. Terms & conditions/privacy policy apply 80810-info.com.

Paid for by the Republican National Committee. Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com

By providing your phone number, you are consenting to receive calls and SMS/MMS msgs, including autodialed and automated calls and texts, to that number from the Republican National Committee. Msg&data rates may apply. Terms & conditions/privacy policy apply 80810-info.com.

Paid for by the Republican National Committee.
Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com

Please check your email to claim your FREE sticker