CNBC Analyst: Obamacare Will Increase Individual Rates by 20% to 100% in 2014
On CNBC, investment analyst Carl McDonald from Citi Investment Research who specializes in analysis of the Healthcare industry and insurance providers opines on the frightening increase in healthcare costs ahead of us in 2014 because of Obamacare.
“This doesn’t really impact big companies like Citigroup or CNBC, but what it does impact is people who buy insurance on an individual basis, and the biggest driver is all the changes coming because of healthcare reform in 2014.”
The percentage of increases actually shocks the host when he gets around to them:
“In 2014, we’re looking at an average individual rate increase of around 20%…”
“…but if you’re one of the youngest, healthiest customers of the insured today, you could easily see your insurance rates rise 100% in 2014…”
For comparison’s sake, healthcare consumers in 2011 experienced a 9% increase, and a 4% increase in 2012. Over the last decade, healthcare premiums have increased by 100%. So for some Americans, their healthcare costs may increase in one year at the rate they increased over the last 10 years.
Our buddy Carl then explains that for lower income Americans, their costs aren’t going to rise as much because there is a government subsidy to help them cover the costs, but these are progressively applied, so if you make $20k a year, the subsidy is very large, but if you make $35k a year, it’s significantly smaller. These subsidies extend to 400% the poverty rate, which is about $80k for a family of four.
“I don’t get the sense that people recognize that these higher rates are necessarily coming…”
No kidding, sister.