Economics 101: When you increase costs on businesses, they must pass those increased costs onto their customers

We have previously pointed out that you cannot add 30 to 40 million people who could not afford insurance coverage before health insurance, maintain high quality for those covered, and still cut costs. 1

The Next Shoe To Drop: Obamacare Will Increase The Cost Of Employer-Sponsored Insurance
Avik RoyAvik Roy, Forbes Staff

Yesterday, the Obama Administration’s Centers for Medicare and Medicaid Services released a six-page report predicting that Obamacare could cause premiums to increase for nearly two-thirds of small- to medium-sized businesses. “This results in roughly 11 million individuals whose premiums are estimated to be higher as a result of the ACA and about 6 million individuals who are estimated to have lower premiums,” CMS writes. But CMS’ projections almost certainly understate the problem, one that will begin to affect millions of workers in the second half of 2014.

CMS: 11 million will see increased premiums

The CMS premium report was a requirement imposed by Congress on the administration under the Department of Defense and Full-Year Continuing Appropriations Act of 2011. That law mandated that CMS “provide an estimate of the number individuals and families who will experience a premium increase and the number who will see a decrease” as a result of the Affordable Care Act.

But CMS only looked at one cost-increasing Obamacare provision: community rating. And they only looked at it for individuals employed by businesses with fewer than 100 employees: what’s called the “small group market.”

A lot more at the link.

Sister Toldjah addressed the CMS report, and noted:

And young folks, it sounds like, will be footing the bill (as predicted).  It’s no wonder so many of them are turning away from our celebrity President.  Now, if only they had listened to what we said about Obama and the so-called “Affordable Care Act” before they voted in 2012.

As they sit there, in their red plaid flannel pajamas,2 talking about getting health insurance, how many of them are going to say not no, but Hell no?

The young adults are not as far along in their careers — assuming that they have jobs at all — as are older workers, generally speaking, and thus earn less money. They can see that they are the ones being raked over the coals on this, and they can see that there are fewer jobs precisely because of Obaminablecare.

Fewer jobs, higher (mandated) insurance costs,3 lower wages, and having to live in their parents’ basement. Well, guess what? They are the reason that buffoon is President today, because they voted for him! It’s just karmic justice that they are the ones getting f(ornicated) over in all of this.

And we told them so, we told everybody so.

It didn’t take a rocket scientist or a doctorate in economics to see this. It isn’t just business experience, but plain, common sense which would tell anyone that is the government adds costs to insurance plans through mandating that they not reject people with pre-existing conditions and provide contraception coverage4 — without any co-payments — or any of the other things mandated, the insurance companies would have to increase premiums to pay for those things. We told you this, as well.

Everything that we have told you would happen either has happened or is happening. This took no special insight, no crystal ball, no great power of clairvoyance. I saw it coming, and conservative writers all over the county saw it coming, because it was just so obvious. We were right, and the left were wrong!

It’s cold comfort to know that we were right all along, because our county has been harmed, perhaps irreparably, by this legislation and this President. There’s not much joy to be had in knowing that the people who voted for that incompetent will be the people who pay most of the price for their votes, but what joy there is in that, I will take.
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  1. Those links are just from The First Street Journal, or our predecessor, Common Sense Political Thought. Check the other conservative sites on our blogroll, and you’ll find that they were saying the same things.
  2. If your son is still wearing flannel onesies pajamas as a (supposed) adult, you have bigger problems than the fact he can’t get a job and is still living with you.
  3. They can coast on their parents’ insurance until they turn 26, which increases their parents’ insurance costs, but then watch out! They’ll find out that it’s a cold, cruel world out there.
  4. We explained how the contraception coverage mandate will increase the costs for contraception.

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