The “Obamacare Raised Insurance Premiums by Double Digits” Lie

This is the news item that is causing the rightwingers to go nuts all over the country. The headline is, Obama Administration Confirms Double Digit Premium Hikes. Those hikes are in premiums for health insurance, if you were wondering. The rightwingers are running with this, saying, “Look! Obamacare made insurance rates double in the US!”
Problem like almost everything rightwingers say, that’s a lie. Obamacare didn’t do any of that. Can’t these rightwingers understand that somehow? Obamacare is nothing but Insurance Reform. That’s all it is. The whole health care sector of the economy is in the private sector. The US has private medicine. Yes, the government pays for some medical care, but only Medicare and Medicaid, and that’s it. Everybody else has to go buy private insurance on the private market. Obamacare is not “a government takeover of health care” because it leaves the whole market in private hands. We have a private, capitalist medical care system.

Now the insurance companies sat down and wrote that Obamacare law with Obama. I really don’t know who is yelling about this law because it sure isn’t the insurance companies. Obamacare meant that the insurance companies got millions of new customers. That’s right, millions. Like maybe 20 million. So it’s a windfall for the insurance companies. Now, no cost controls were put on Obamacare because 100% of the Republicans and rightwing Democrats were opposed to them. So Obama caved on cost controls, and none were put in. The rates are going up in part because the government has not yet imposed price controls on this capitalist industry.

The companies that raised those rates are all capitalist companies! They are private, capitalist companies who decided to raise their rates outrageously for no apparent reason except that they are capitalists out to ream the customer. The government didn’t raise those rates. Obamacare did not raise those raise those rates either because Obamacare says not one single word about rates. So if you have a problem with the rates going up so much, take it up with the capitalist insurance companies who raised those rates in the first place. Why are rightwingers attacking the government for capitalist companies that decided to raise their rates. How is that the government’s fault?

9 Comments

Filed under Capitalism, Conservatism, Democrats, Economics, Government, Health, Law, Obama, Political Science, Politics, Republicans, US Politics

9 responses to “The “Obamacare Raised Insurance Premiums by Double Digits” Lie

  1. Bay Area Guy

    It’s crazy. Obamacare is basically a Republican plan hatched by the Heritage Foundation in the late 80s, which then became Romneycare in Massachusetts.

    That so many Republicans are savaging Obamacare, while progressives such as Dean Baker – whom I mostly agree with – defend it, just goes to show that a lot of peoples’ supposedly firm convictions really just reflect partisanship (even though Dean Baker takes Democrats to task as well).

    If Obamacare has demonstrated anything, it’s that we can’t get good healthcare within the confines of private health insurance. Ultimately, we need government funded universal healthcare, which, ironically, would actually be good for the private sector.

    • Jason Y

      OK I will play the Devil’s Advocate, but don’t ban me. If a lot of people practice horrible health habits, then wouldn’t that be unfair to taxpayers who have to front the bill?

      • It is a legitimate question. They are having this debate in the UK right now concerning smokers.

      • Natz

        There are things other than “not paying” for the healthcare that can be done. Some have suggested tying welfare with reproductive rights, so for example while you are on it you could be given temporary or permanent birth-control.
        Some have also argued that within a universal system like the NHS that the advancements in medicine will make it increasingly difficult to provide quick service if you do not heavily discriminate on what treatments are to be prioritized or even included in that system.

  2. Tulio

    Now the insurance companies sat down and wrote that Obamacare law with Obama. I really don’t know who is yelling about this law because it sure isn’t the insurance companies. Obamacare meant that the insurance companies got millions of new customers. That’s right, millions. Like maybe 20 million. So it’s a windfall for the insurance companies. Now, no cost controls were put on Obamacare because 100% of the Republicans and rightwing Democrats were opposed to them. So Obama caved on cost controls, and none were put in. The rates are going up in part because the government has not yet imposed price controls on this capitalist industry.

    Republicans do lie a lot, but Democrats do as well. The insurance companies have been losing money. Even though they got a lot more signups, these signups were disproportionately expensive patients who couldn’t get care prior that are causing the insurance companies a loss. It was expected that enough healthy, young people would sign up to offset these costs, but due to the low penalty payment for going uninsured, that has not been happening. So rates are going up or some insurers are just pulling out of the ACA marketplace altogether. What there needs to be to save the ACA is a public option as well as cost controls that other industrial nations have. It’s interesting that nobody has a problem with a public option in education(state funded schools such as UC Berkeley and UCLA), but a public option in health care is beyond the pale.

    Republicans also neglect to mention the tax credits for ACA plans that help offset those hikes.

  3. Jason Y

    Seems like a situation similar ot what we saw with Chavez. The capitalists are trying sabatoge socialist gains. One way they do that, as far as health insurance is concerned, is by raising the rates.

  4. Shooter

    I disagree. Obama had to cheat in order to get it passed. That sounds like a form of cronyism and crony capitalism to me.

    “I really don’t know who is yelling about this law because it sure isn’t the insurance companies. Obamacare meant that the insurance companies got millions of new customers.” – Yeah, sure. But Obama also forced people to buy it or else they’d be fined or jailed. Not really a solution, and the blame game to Republicans kinda dismisses the matter.

  5. Natz

    “Why are rightwingers attacking the government for capitalist companies that decided to raise their rates. How is that the government’s fault?”
    Peter Schiff would say something like this “this is what you’d expect to happen, you can’t expect an alcoholic handed a truckload of vodka to behave himself, therefore it is the governments fault”.

  6. Homer Simpson

    Sounds like yet another form of corporate welfare it me, much in the way the Federal Reserve actually works, for it is really a clearinghouse for the banks( in other words, privatizing profit, but socializing the costs,as always)

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