AUSTIN – The Texas Public Policy Foundation issued the following statement regarding the launch of the 36 federal health insurance exchanges operated by the federal government:
“Today, the ObamaCare Health Insurance Exchange (HIX) opens to the public against popular opinion and fiscal practicality,” said Arlene Wohlgemuth, Executive Director and Director for the Center for Health Care Policy. “Last week, the U.S. Department of Health & Human Services released data from 36 federal health insurance exchanges that confirms what the Texas Public Policy Foundation has long argued: health care premiums for plans offered on the federal exchange are significantly higher than pre-ObamaCare costs.”
According to John Davidson, analyst for the Center for Health Care Policy, rising health care costs are a particular concern for young people seeking coverage on the exchange.
“According to Health and Human Service’s data, the average cost of a catastrophic plan for a 27-year-old in Texas will be $153 a month on the federal exchange. Compare that to an average of the three cheapest catastrophic plans currently available to that same 27-year-old in Austin, which is $59 a month, that’s a 158 percent increase. Premiums won’t go up for everyone seeking insurance on the exchange because of federal subsidies that will offset higher costs. However, rates will go up for most young people who earn more than $30,000 a year. The bottom line is that ObamaCare will make health insurance less affordable for most Americans at a time when many people are struggling financially,” said Davidson.