As Predicted, Obamacare Is Absolutely Killing The Middle Class

Obamacare Frustration - Public DomainThe critics of Obamacare have been proven right.  The Obama administration promised that health insurance premiums would go down.  Instead, they have absolutely skyrocketed.  The Obama administration promised that Obamacare would not kill jobs.  Instead, firms are hiring fewer workers because of suffocating health care costs.  As you will see below, even the Federal Reserve is admitting this.  The Obama administration also promised that the big health insurance companies would love the new Obamacare plans and would eagerly compete with one another to win customers in the new health insurance marketplaces.  Instead, many of the big health insurance companies are now dropping Obamacare plans altogether.

We witnessed the latest stunning example of this phenomenon just a few days ago.  It turns out that Aetna has been losing hundreds of millions of dollars on plans sold through the health exchanges, and now they plan to pull out of the program almost entirely

Earlier this week, Aetna, which covers about 900,000 people through the health exchanges created under Obamacare, announced that it would dramatically reduce its presence those exchanges. Instead of expanding into five new states this year, as the insurer had previously planned, the company said that it would drop out of 11 of the 15 states in which it currently sells under the law.

Aetna’s decision follows similar moves from other insurers: UnitedHealth announced in April that it would cease selling plans on most exchanges. Shortly after, Humana pulled out of two states, Virginia and Alabama. More than a dozen of the nonprofit health insurance cooperatives set up under the law—health insurance carriers created using government-back loans in order to spur competition—have failed entirely. While some insurers are entering the exchanges, even more are leaving.

Another one of “the big five”, UnitedHealth, is going to lose more than half a billion dollars on Obamacare plans.  So just a few months ago they also announced that they would be dramatically scaling back their participation in the program.

Because of the ridiculous costs, health insurance companies are either going to have to abandon the exchanges completely or they will have to raise rates substantially.

Needless to say, the people that are going to ultimately feel the pain from all of this are consumers

Customers who are now forced to obtain insurance or pay a hefty fine that grows more costly over time are being left in a difficult position. Americans are essentially stuck between a rock and hard place, either losing coverage entirely, or having to cough up money for a plan they can’t afford.

Something has to give,” said Larry Levitt, a healthcare law expert at the Kaiser Family Foundation. “Either insurers will drop out or insurers will raise premiums.

On the low end of the spectrum, tens of millions of poor Americans benefit from government programs that provide health care at little or no cost.

On the other end of the spectrum, the very wealthy can afford to pay the ridiculously high health insurance premiums that we are seeing under Obamacare.

So what this means is that the people that are being hurt the most by Obamacare are those that belong to the middle class.

As I mentioned above, employers are now hiring less workers because of Obamacare, and that is very bad news for the middle class.  One recent study conducted by the Federal Reserve Bank of New York discovered that nearly one out of every five firms is “employing fewer workers” because of this insidious law

According to a new survey by the Federal Reserve Bank of New York, 20.9% of manufacturing firms in the state said they were employing fewer workers because of the Affordable Care Act, the healthcare law known as Obamacare, while 16.8% of respondents in the service sector said the same.

And middle class Americans that have to pay for their own health insurance are being hit with much higher bills these days.  According to one recent study, it is being projected that the average Obamacare premium will go up 24 percent in 2016…

Now, courtesy of a new study by independent analyst Charles Gaba – who has crunched the numbers for insurers participating in the ACA exchanges in all 50 states – we can also calculate what the average Obamacare premium increase across the entire US will be: using proposed and approved rate increase requests, the average Obamacare premium is expected to surge by a whopping 24% this year.

Even NBC News, which is about as pro-Obama as you can get, is reporting on the crippling premium increases that are devastating the middle class…

Millions of people who pay the full cost of their health insurance will face the sting of rising premiums next year, with no financial help from government subsidies.

Renewal notices bearing the bad news will go out this fall, just as the presidential election is in the home stretch.

“I don’t know if I could swallow another 30 or 40 percent without severely cutting into other things I’m trying to do, like retirement savings or reducing debt,” said Bob Byrnes, of Blaine, Minnesota, a Twin Cities suburb. His monthly premium of $524 is already about 50 percent more than he was paying in 2015, and he has a higher deductible.

All over the nation people are getting hit like this.

Personally, my health insurance company wanted to nearly double the rate I was paying when Obamacare fully kicked in.  So I searched around and found another plan that was only about a 30 percent increase, but at least it wasn’t nearly double what I had been paying before.

But when the time came to renew that plan, they wanted to jump my premium up another 50 percent per month.

Those of us that are in the middle are being crushed by Obamacare.  We aren’t poor enough to qualify for government assistance, and we aren’t wealthy enough for these ridiculous health insurance premiums not to matter.

Just about everything that Barack Obama promised us about Obamacare has turned out to be a lie.

So where in the accountability?

This is one of the big reasons why nearly one out of every five U.S. adults lives with their parents or their grandparents these days.  Many young adults cannot afford the basics of life such as health insurance, and so they have got to find a way to cut back expenses somewhere.  If that means moving back in with Mom and Dad, that is what some of them are going to do.

I am astounded that our system of health care has become so messed up.  But this is just more evidence of how our society is falling apart in thousands of different ways, and I am not optimistic that things will be turned around any time soon.

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  • Charlie Primero

    > So where in the accountability?

    Do the people who sent their congressmen to Washington D.C. to enact the Patient Protection and Affordable Care Act of 2010 bare any responsibility?

    • Silverado

      DemocRATs and accountability in the same thought pattern?? Isn’t that an oxymoron?? (Yes) You answered your own question…

      • wunsacon

        Where were/are the Republicans on this?

        • diogenes

          ya think?

    • cityspeak

      Hey Charlie I think you misunderstand what the US government has morphed into which is a “Protection Racket” for the .01%.
      The rest of us are seen as rubes here to be fleeced and if we get too troublesome silenced, ruined, or removed from the board completely.
      There was an American named Fred Hampton. He became too much “trouble” and was removed.
      Even Scott Weiner dared to threaten the medical insurance racket directly by speaking the unspeakable and then his little internet exploits were exposed and his political career ruined. Here is a list of other Americans that dared to stand up;
      Edwin Snowden
      Chelsea Manning
      John Kiriakou
      This has been going on for a long time and the people in power have no intention of giving any of that power up, never.
      More and more citizens are waking up to this fact. This election alone is letting both sides of the aisle understand what the game really is and it has nothing to do with our hopes, desires and dreams. It’s a racket and we aren’t players but its target.

      • Charlie Primero

        Everything you said is true, but do the people who sent their congressmen to Washington D.C. to enact the Patient Protection and Affordable Care Act of 2010 bare any responsibility getting fleeced?

        One time I forgot and left a nice Craftsman socket set in the bed of my truck while I went into the grocery store. When I returned the set was gone. Do I bare any blame for that $100 loss?

        • cityspeak

          The foundation of our relationship is based on a complete falsehood that goes something like this:
          The Voter:
          I will give you my vote, based on what you said you envision our country being and becoming and you will enact and fight for this vision to the best of your abilities.
          The Politician:
          I will maintain and prop up the status quo (servicing the .01%, military industrial complex, Wall Street, Big Pharma, Insurance Co. and etc) but of course I will tell you anything to get into the position but it is all lies. I won’t be “working for you or your community” I will be working for the .01%.
          The current blame American voters bear at this point in our history is that the fundamental lie is felt by more and more people but it isn’t discussed openly or acted upon by the majority of citizens that are disenfranchised and powerless.

          Leaving something of value in your truck where someone can steal it was a mistake on your part.
          Having something stolen from “someone where there is an understanding of an established relationship”, with obligations, support and duty, the blame falls on that someone that is using the established relationship for their own profit.

          An example would be the lawyer stealing from his clients, or the teacher sexually abusing a student. They have a position of trust, power and authority. There is an understanding that the lawyer will act in the best interests of the client and the teacher will educate the child, not use these positions or status to enrich themselves or to gratify their own whims.

          • Charlie Primero

            Those are good analogies. I see your point.

            I just seems strange that so few people are angry about 50% effective tax rates and the obvious, blatant corruption of elected representatives. I honestly do not understand why people are not demanding politicians be prosecuted.

            I know half the population does not complain because they subsist on 19 Trillion dollars in National Debt spending, but the other 50 should be mad enough to act.

        • tom

          American voters are allowed to choose freely between a small handful of candidates, all of whom are dishonest and none of whom are in the slightest interested in helping ordinary citizens. They can vote for the 0.01%’s Candidate A, the 0.01%’s Candidate B, or the 0.01%’s Candidate C. Actually it’s a slight variation on the USSR’s periodic elections, in which there was only one candidate – the Communist Party candidate. You could vote for him, or not, as the mood took you. (If you didn’t mind repercussions such as losing your job if you didn’t). Apparently the whimsical humorists of the USA’s ruling elite decided to modify this ever so slightly, by offering two or more candidates – all representing the same party. How they must have laughed when the suckers took it all dead seriously, and got all excited supporting “their” party!

          Gore Vidal pointed this out decades ago:

          “There is only one party in the United States, the Property Party… and it has two right wings: Republican and Democrat. Republicans are a bit stupider, more rigid, more doctrinaire in their laissez-faire capitalism than the Democrats, who are cuter, prettier, a bit more corrupt – until recently… and more willing than the Republicans to make small adjustments when the poor, the black, the anti-imperialists get out of hand. But, essentially, there is no difference between the two parties”.

          “Democracy is supposed to give you the feeling of choice, like Painkiller X and Painkiller Y. But they’re both just aspirin”.

          • Charlie Primero

            Good point. I do see the systems in China and the U.S. as evolved, more perfect forms of Communism; ie. a tiny class of Oligarchs ruling over a huge slave/worker majority using a combination of police and social engineering.

  • Silverado

    That’s just it – Obama doesn’t care. He’s worthless, just like the brand of Govt he…leads. That will be one of the very first things that get’s…corrected in a Trump victory in November, I would assume. Karl Denninger, The Market-Ticker, has also written (blogged) extensively about this subject and it’s negative effect on our economy.

    • wunsacon

      I sure hope Killary loses. But, don’t get your hopes up about Trump fixing much. He thinks or pretends he’s anti-establishment but surrounds himself with lifelong establishment types. And he makes important points only to contradict himself later or back away from them.

      • diogenes

        Thank god America is a democracy so we have a choice. We can choose between two criminal assholes, both of whom are owned by the same class of oligarchic mass murdering predators. Ain’t life grand? Wouldn’t Washington be proud of us? And Jefferson? And Lincoln? Yessir, we’re honoring American values just fine. Yessir yessir three bags full. Take your pick. It’s a free country. Which pocket do you want picked this time?

    • Charlie Primero

      U.S. Presidents are puppet actors who do as they are told by the banks.

      Blaming Obama or Bush for actions of the U.S. Government is like blaming Ronald McDonald for what McDonald’s corporation does.

      Keep poking the electronic ‘like’ button the voting booth every four years if that makes you happy, but expecting any change to result from doing so is retarded..

      • Zap

        Great analogy

        : )

  • Clif Brown

    Obamacare is tanking because it is a cobbled together program designed to please the insurers first and only then provide health insurance coverage. No insurance plan can work if only the poorest risk people are covered. What is needed is a single payer plan that covers all Americans. As it is the private insurance middle man is taking a generous cut of the money collected from policy holders, then making more by investing the pool of money. This is not adding value, but subtracting it. All of the manpower of all the private insurance companies must be paid out of premiums as must the multi-million dollar annual salaries of the CEO’s. It is in the interest of profit making to maximize premiums and minimize payouts. Private health insurance company profits and expenses eat up premium income but do not provide a dime for healthcare, so unsurprisingly other country don’t have such a system. It is tolerated because employers have been paying a good part of the bill, but they are getting out of that payment as much as they can, placing it on the employees.

    • diogenes

      The primary economic and financial function of all insurance companies has always been to collect and pool funds to be “invested” in Wall Street. Delivering bad “health care” etc. is merely a ruse. We need to dump this entire stinking system, and Wall Street with it. END VAMPIRE RULE.

  • diogenes

    Before America’s Two Party Wall Street Prostitute Corrupt Congress passed the Obamacare private health insurance monopoly plan, it was firmly established and widely known that over TWO THIRDS of Americans favored and wanted to see passed a SINGLE PAYER health care plan. But the boughten whores of Congress, of “both” parties, bought and paid for by the private insurance companies, whose primary objective is to aggregate capital for speculation by Wall Street vampires, instead passed this predatory pickpocket plan, so that Americans can continue to pay 150% of any other country in the world for third world levels of public health. Thanks to these Wall Street scum, infant mortality rates, for instance, in America are lower than in Cuba or Turkey. Ain’t we proud? We got the best government the money of the 0.1% can buy.

    THAT’s what needs addressing here — and NOT whether or not the vampire cartel predator that styles itself Aetna is or isn’t going to drop the 900,000 people whose pockets it picks — who collectively represent less than one third of one per cent of Americans.

    But what Snyder gives us is a fistful of dust in our eyes. Instead of seeing and discussing this problem, as, for instance, Clif Brown does (below) what he gives us is a lament for Aetna and its fellow vampires, disguised as a plea for the “middle class.” Either Snyder is totally clueless or he’s a stooge for the vampires. Either way, Washingtonsblog insults its readers by publishing this crap.

  • MahmudH

    Save billions – Get rid of all those insurance companies, have a national health service like England.

    • diogenes

      Or Canada’s, or Germany’s, or France’s, or Italy’s, or any of more than 20 “developed” civilized countries that provide healthcare that is not configured primarily as a means of pillage for the benefit of an perdatory oligarchy like the Wall Street one-in-a-thousand who suck America’s blood

      • cityspeak

        At this point in our sad collective history I’d settle for what they have going on in that small middle eastern country.

        • diogenes

          Not me. I don’t like barbecued babies, even if they are Palestinian babies, even with special kosher sauce. It still stinks.

          • DebL.

            “even if they are Palestinians babies…”

            Gee, even Palestinians are worth keeping alive! Who woulda thunk it?

            God, perhaps?

            And don’t tell me I am cursing Israel! I don’t have to! They curse themselves every second of every day!

            1 John 2:24–(and I paraphrase)…He who hath NOT the Son hath NOT the Father, but he who hath the Son hath the Father also.

            And now you know why God is cursing Israel (which He has been doing since about 300 BC…)

    • tom

      How about a FREE national health service like the one that Libya had under Qadafi?

  • Nov 12, 2014 Howard Dean: Obamacare Created by ‘Elitists Who Don’t Fundamentally Understand the American People’

  • ObamaCare: What You’re Not Being Told

    Let’s take a look at ObamaCare without the party politics.

  • Know the TRUTH about the Government Health Care Bill H.R.3200 – Key Points

    THIS IS A GUIDE TO THE ORIGINAL HEALTHCARE BILL H.R. 3200. Yes the healthcare bill HR3962 passed. This video is based on HR3200 but it is very closely related to HR3962 with the exception that HR3962 is deemed to be worse! If we don’t get this bill thrown in the trash where it belongs.

  • purrsun

    Feeling heavy-hearted for multitudes who have struggled to pay ins premiums while believing they are keeping loved ones safe. Benefits described in promotional lit are available – If Approved. Doctors’ recommendations can easily be disregarded, and fate allowed to take its course. Beware hospital-acquired pneumonia, and other assorted deadly infections. Patients used as cash cows – to a point. Twenty-six days in ICU, w/ treatment plan denied, and then respiratory failure. But machines are running/ cha-chinging for someone else . . .

  • DebL.

    Here is how you get out of having to pay for ObamaCare AND that stupid “Line 61 penalty”–one, join a Christian Healthshare Ministry (Liberty Healthshare doesn’t even require you to attend church—I don’t); two, if your premiums amount to more than 8.05 percent of annual income–and that is becoming more and more likely, then you don’t have to have insurance OR pay the “tax” on Line 61; three, same goes for employees that cannot cover their families for same reason–it’s too expensive; four, religious objection, but you may have to forego getting Social Security when you retire; five, member of Native American tribe (and you can prove you are part Native American, live on reservation or not), you do not have to file…are just some ways that this can be avoided. Actually, I cannot think of any reason why anyone is paying for this ridiculous rip-off! And remember–if you get insurance through ObamaCare you are paying for: abortions, sex changes, death panels, and other abominations to God!

  • Really? Immediately before the ACA came online, my premium shot up to a point that my broker told me to drop it because it was a rip off. Now that Congress is fucking us for partisan points, my ACA policy is still far more affordable than the last one through the broker. You know, maybe flawed as the ACA is — a necessary real-world compromise to get it passed — the real problem is Congressional sabotage. So by all means, empowering the Republican shits is clearly a step on the road to true reform.

    So if the ACA’s killing the middle class, it’s not killing this member of the middle class.

  • wysoft

    Here I am today enrolling in a new plan for 2017. I’m a single wage earner for a family of four, making just under $100k. So obviously I do not qualify for, nor do I want any subsidies.

    Even the lowest tier plans are over half the monthly cost of my mortgage. How anyone can call any of this “affordable” is beyond me.

    Scrap the whole effing thing.

    • Ivan_Rediskin

      But it works for those who make less than 60K per household or whatever that ‘cut off” amount is. Basically we (those do not qualify for subsidies) are paying for those who do qualify.
      It is called robbing Peter to pay Paul!

  • Paul Hatfield

    Just finished doing my taxes, and as our income changed twice during the year, we have to pay back $8200 in PTC to IRS. We are lower middle class and do not have $8200 sitting around. I have never lied about anything on my taxes, but this is not right. Yes we had health care, but it cost us right at 20,000 with the PT credit amount added on. I have just one thing to say, and I don’t care if Feds come and try to get me, I would love to be able to get in a room with Mr Obama, who as I was losing sleep over this, was on a yacht living the high life, for only one person would be leaving that room and it would not be him

  • Ivan_Rediskin

    In terms of “healthcare” US is not part of a developed world.