Paul Krugman: Obamacare Life Spiral
Imagine taking a time machine back to 2010 and telling Republicans in Congress, who were arguing that the CBO was wildly underestimating Obamacare’s cost, that the law would be cheaper than predicted and, at least in the states that accepted its Medicaid dollars, cover more people than the Congressional Budget Office thought. After the laughing and mocking and the calling of security, let’s say you offered this prediction in the form a of a bet. What odds do you think Obamacare’s critics would have offered? 2:1? 5:1? 10:1? But you don’t have to go back to 2010. Look at John Cochrane in late 2013, taking it for granted that Obamacare would implode in a death spiral within a few months. Look at The Hill just four months ago, telling us that double-digit premium hikes were coming.
One question we might ask here is, why is the news so good? The answer, I’d suggest — although I hope the real experts will weigh in — is that we’re actually seeing the opposite of a death spiral; call it a life spiral. For one thing, the huge surge in enrollments late in the day meant that the risk pool this year is better than insurers expected, and they now expect 2015 to be better still. Also, importantly, big enrollments mean that more insurers are entering the market, increasing competition. And, of course, the better the deal the more people will sign up: success feeds success.
Republicans just can't accept that Obamacare is working because they've never seen a Republican idea work before. krugman.blogs.nytimes.com/2014/09/05/oba…—
(@LOLGOP) September 05, 2014
Kaiser Family Foundation: Premiums Set To Decline Slightly For Benchmark ACA Marketplace Insurance Plans In 2015
An early look at the cost of health insurance in 16 major cities finds that average premiums for the benchmark silver plan – the one upon which federal financial help under the Affordable Care Act to consumers is based – will decrease slightly in 2015. The new study from the Kaiser Family Foundation analyzes premiums in the largest cities in 15 states and the District of Columbia where information from rate filings is available. Premiums for the second-lowest cost silver plan for individuals
will fall by an average of 0.8 percent from current levels in these cities when open enrollment begins on Nov. 15, according to the study. The analysis finds that the premium for the second-lowest-cost silver plan is decreasing in 7 of the 16 areas studied – but also that changes in average premiums will vary considerably across areas. At least two insurers will offer coverage through the marketplaces in the major city in each of the 15 states studied and D.C. Most areas will have five or more insurers, and three will have 10 or more.
Competition driving ACA benchmark premiums down in many places. In health care, it's like defying the law of physics. kff.org/health-reform/…—
Larry Levitt (@larry_levitt) September 05, 2014
Dan Diamond (@ddiamond) September 05, 2014