Maggie's Farm

The guarantee-issue provision of ObamaCare is expected to result in many enrolling in individual plans who are ill, or waiting to enroll until ill. The Center for Consumer Information & Insurance Oversight (CCIIO) of the Centers for Medicare & Medicaid Services (CMS) at the U.S. Department of Health and Human Services (HHS) will require group health plans to subsidize individual health plans with about $27-billion between 2014-2016. That is expected to keep individual premiums about 10-15% lower but raise group premiums by 1%.

The estimate is supposedly based upon the experience of New York's guarantee-issue requirement since 1993, where premiums have actually skyrocketed compared to the rest of the US. According to Kaiser Health Facts, in 2010 the average individual premium in New York was $357 versus the US average of $215, while the employer-provided family coverage premium is 6% higher in New York. It'll take much more than $27-billion taken from employers to subsidize the added individuals covered by insurance under ObamaCare.