Side Effects: Obamacare Encouraging Insurers to Cut Corners

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“As Obamacare takes effect, more Americans could end up with plans that restrict their access to care due to provisions that raise premiums.  Under the new law, the federal government will dictate what benefits health plans must offer.  The more generous the required benefits package, the higher insurers will have to hike premiums.

Obamacare also alters public health programs in ways that drive private sector premiums higher.  Expanding Medicaid means doctors will be treating more patients at Medicaid’s below-market rates.  To cover their losses on Medicaid patients, physicians will have to charge their privately-insured patients even more.  As the Times explains, “Even large employers, worried that the new law will result in higher prices for care as government programs pay less, are reconsidering their earlier stance.”

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