Health insurance premium hikes on the way

Polling on Obama’s health care reform legislation before and after it was signed into law told us that the majority of the American people were paying attention and understood what the legislation meant. They saw increasing insurance premiums and decreasing coverage marching down Main Street and heading their way. The minority of Americans who didn’t want to put in the effort to understand ObamaCare but chose to be spoon fed what Pelosi, Obama, and Reid were feeding them, which was that health care reform legislation would bend the cost curve down, may be facing higher health insurance premiums.

Why? In order to convince the American people that they will like ObamaCare, the administration mandated that benefits go into effect earlier than originally planned, which has forced insurance companies to respond with immediate rate hikes:

Health insurers say they plan to raise premiums for some Americans as a direct result of the health overhaul in coming weeks, complicating Democrats’ efforts to trumpet their signature achievement before the midterm elections.

Aetna Inc., some BlueCross BlueShield plans and other smaller carriers have asked for premium increases of between 1% and 9% to pay for extra benefits required under the law, according to filings with state regulators.

These and other insurers say Congress’s landmark refashioning of U.S. health coverage, which passed in March after a brutal fight, is causing them to pass on more costs to consumers than Democrats predicted.

The rate increases largely apply to policies for individuals and small businesses and don’t include people covered by a big employer or Medicare.

A good chunk of jobs in America are provided by small businesses. The WSJ article estimates that one in five Americans, or 20%, work at companies with fewer than 50 employees, so these increases will affect a lot of people. With the housing market in what feels like a bottomless decline and the economy teetering on the edge of a cliff, these premium hikes couldn’t come at a worse time. Couple that with the massive tax increases scheduled to go into effect on January 1st of next year that will make the cost of doing business in America even more prohibitive, more Americans will find themselves looking at pink slips.

All that Hope and Change business that the president was selling a couple years ago doesn’t look so good anymore, does it?

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Hillary 2012?