Obamacare insurance plans may be expensive

There is increasing evidence showing that Obamacare exchanges will be "bare bones" and expensive. Like many health insurance debates, the pressure points revolve around quality and price.

A recent article on Real Clear Markets explores four reasons Obamacare plans won’t be cheap: 1)"Insurers will want to protect against the risk that individuals entering the exchanges are those who most need health insurance because of pre-existing illness. 2) Health plans want to reduce uncertainty around how all the risk-sharing provisions in Obamacare will eventually play out. 3) Health insurers will want to reduce the incentive for employers to drop coverage and dump employees into the exchanges. 4) The providers that Obamacare plans must contract with are unlikely to offer significant price cuts to attract this volume.”

In the end, it appears insurers are going to protect their bottom line and pass along expenses to consumers.

Email: mhartvigsen@desnews.com

Read more about Obamacare on Real Clear Markets.