Health costs to drop 50% in New York

As predicted by those who understood it, Obamacare is making health care costs drop (which is exactly the opposite of what opponents said would happen, of course). We’ve already seen that happen in California, and now New York is seeing the same.

“Provisions of the Affordable Care Act that have already been implemented and constrained government payments to doctors and hospitals appear to be trickling down to consumers, in the form of less expensive insurance plans, and cheaper drugs and treatments,” says The Week.

Admittedly, this will not be true in every state. Some will see rises, but from what I understand, it is mostly because Obamacare is making those states cover more than they used to whereas in other states, they had already been covered. In other words, in states where there was already a mandated coverage from state regulation (mostly Democratic states as you’d guess), Obamacare appears to have brought prices down, whereas in states where insurance companies did not cover much (mostly Republican states) and are now required to cover more, the prices will go up a bit.

I am no economist — far from it — but I did want to point this out as a counter to the constant drone that this would make all insurance costs go up. Perhaps some of you reading this may have more expertise on this to contribute, and hopefully as free from political bias as possible, because I’d really like to know the facts free from spin.

One thought on “Health costs to drop 50% in New York

  1. Per NYT, it looks like this will help 17,000 people affected by adverse selection by broadening the pool to 615,000. “The rates for small businesses, which are considerably lower than for individuals, will not fall as precipitously.”

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