Total subsidies from the decreasing pool of taxpayers will rise from $32 billion to over $42 billion next year.
Currently more than eight in 10 consumers buying private health insurance through HealthCare.gov and state markets receive tax credits from the government to help pay their premiums. Those subsidies are designed to rise along with premiums, shielding consumers from sudden increases. But the bill ultimately gets passed on to taxpayers.
Insurers say the spike in premiums is due to lower-than-projected enrollment, patients who turned out to be sicker than expected, people gaming the system to get coverage only when they need medical care and a premium stabilization system that has not worked as intended.
The administration says the higher premiums are a one-time market correction and not a sign that the law’s insurance markets are slipping into a “death spiral” of rising premiums and declining enrollment.
Wait… “people gaming the system to get coverage only when they need medical care”? That’s not gaming the system… that IS the system… no pre-existing conditions are taken into consideration.