Nov 24, 2013

McCarthy Falsely Claims Premiums Go Up 41 Percent

On CBS’ Face the Nation this morning, Republican Whip Kevin McCarthy falsely claimed that premiums are going up by 41 percent under the Affordable Care Act, even though multiple studies have found Americans across the country face “no widespread trend” toward higher prices under the Affordable Care Act.

Instead, Republicans' repeal efforts would take the country back to a broken system that led hardworking people into bankruptcy and gave insurance companies unchecked power to deny care and drop coverage‎.

In fact, additional studies have shown that millions of Americans who currently buy health insurance on the individual market will receive assistance paying their premiums. According to Families USA, about 70 percent of that group will receive help paying their premiums under the Affordable Care Act.

BACKGROUND 

Multiple Studies Found Affordable Care Act Offered Competitive and Affordable Prices.  “New research by the Kaiser Family Foundation, the RAND Corp. and Avalere Health have found competitive, affordable prices for individual coverage in states where the information is available. Those states include Washington, California, Florida, South Carolina and Texas. ‘Our analysis found no widespread trend toward sharply higher prices in the individual market,’ said a statement by Christine Eibner, a senior economist at RAND, a non-profit research organization based in Santa Monica, Calif […]New research by the conservative Manhattan Institute appears to be an outlier. Its report found nine states will see premiums increase, on average, under Obamacare next year, while five others will see average rate declines. The Affordable Care Act makes sweeping changes to the way health insurance is bought and sold outside the workplace. Beginning next year, insurers in the individual market must provide beefed-up coverage and cannot deny insurance based on current or past health problems.” [McClatchy, 9/05/13]

Families USA: 70 Percent of Americans Will Get Help Buying Coverage on Healthcare Exchange. “About 15 million people currently purchase health insurance on their own, using the individual market. And about 70 percent of them -- about 10.8 million people -- will qualify for the financial help buying coverage under the health-care law, according to a new study out Thursday from Families USA. Their analysis suggests that many Americans receiving cancellation notices would receive assistance through the health overhaul, either by qualifying for subsidies to purchase a private plan or through Medicaid, the public program that serves low-income Americans.” [Washington Post, 11/21/13]


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