Don’t Panic: Health Insurance Rates Aren’t About to Rise by 50 Percent

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Here’s the latest Fox News bait from the Wall Street Journal:

Major insurers in some states are proposing hefty rate boosts for plans sold under the federal health law, setting the stage for an intense debate this summer over the law’s impact.

In New Mexico, market leader Health Care Service Corp. is asking for an average jump of 51.6% in premiums for 2016. The biggest insurer in Tennessee, BlueCross BlueShield of Tennessee, has requested an average 36.3% increase. In Maryland, market leader CareFirst BlueCross BlueShield wants to raise rates 30.4% across its products. Moda Health, the largest insurer on the Oregon health exchange, seeks an average boost of around 25%.

All of them cite high medical costs incurred by people newly enrolled under the Affordable Care Act.

Well, of course they do. It’s a handy excuse, so why not use it?

In any case, we’ve all seen this movie before. Republicans will latch onto it as evidence of how Obamacare is destroying American health care and it will enjoy a nice little run for them. Then, a few months from now, the real rate increases—the ones approved by state and federal authorities—will begin to trickle out. They’ll mostly be in single digits, with a few in the low teens. The average for the entire country will end up being something like 4-8 percent.

So don’t panic. Sure, it’s possible that the Obamacare shit has finally hit the fan, but probably not. Check back in October before you worry too much about stories like this.