Democrats are Worried About Health Insurance Premium Hikes Under Obamacare

Politico
notes that Democrats have reoriented their Obamacare PR efforts
toward defending against attacks that focus on higher health
insurance premiums. The news, though, is not so much that Democrats
are preparing to defend the law as that they are openly worried
about the political effects of higher health insurance
premiums.

“Most state health insurance rates for 2015 are scheduled to be
approved by early fall, and most are likely to rise,” the piece
says, “timing that couldn’t be worse for Democrats already on
defense in the midterms.”

The party behind the health law probably should be
concerned. The conservative Heritage Foundation has projected
double digit rate increases in states such as Arkanas, Alaska, and
Louisiana. And, as the report indicates, “although no state has
finalized its rate, 21 have posted bids for 2015. Average
preliminary premiums went up in all 21, though only a few by double
digits.” These are unsubsidized rates, and some will likely be
negotiated down. 

It’s not clear how big the hikes will be, in other words, but so
far it looks very much like the trend is toward somewhat higher
rates in most places and significantly higher rates in a few areas,
despite repeated administration promises that the law would lower
the cost of health care. (“We end up saving $2 trillion…a lot of
those savings can go back into the pockets of American consumers in
the form of lower premiums,” Obama
said in 2009.)

How will Democrats respond? House Minority Leader Nancy Pelosi’s
communications director provides a hint, telling Politico
that there’s a lot of “misinformation” and that “you have to make
sure that members have the historical trends, they have the new
information in a straightforward way….It’s setting the proper
context that’s so crucial here.” The context and the historical
trends all seem fairly straightforward here: President Obama
promised that the law would reduce premiums. Now, with the law’s
coverage expansion taking effect, unsubsidized premiums for plans
purchased on the exchanges look likely to rise. 

To the extent that there is a bigger picture here, it’s that
Democrats, having unilaterally passed Obamacare, now in some sense
have taken ownership of the nation’s health care system. Its
problems are their problems, and that’s not a particularly enviable
position to be in going into an election.