Posted by AzBlueMeanie:
Last month there was the economics debunking of the Reinhart-Rogoff thesis, which led to a back and forth argument between traditional economists (Keynesians) and conservative economists. In the end, Reinhart-Rogoff were proved wrong and Paul Krugman proved right. Of course, the conservative economists refused to concede they were wrong. For them it is a matter of faith, not science (which means they should not be taken seriously as economists).
This month, a new economics back and forth argument has developed between economists. Karoli reports Forbes Tells The Truth, Then Lies About Obamacare:
Last week, Forbes blogger Rick Ungar admitted he was wrong about Obamacare and insurance rates, following the news that California's rates were actually less than expected.
For quite some time, I have been predicting that
Obamacare would likely mean higher insurance rates in the individual
market for the “young immortals” and others under the age of 40. At the
same time, my expectation was that those who fall into the older age
ranges would benefit greatly as their premium charges would be lowered
thanks to the Affordable Care Act.
It is increasingly clear that I had it wrong.
That must have come as a shock to the Forbes community, so they quickly put Avik Roy, their corporate pharma shill, on the job. His post making the claim that rates double is incredibly disingenuous on a number of levels.
If you’re a 25 year old male non-smoker, buying insurance
for yourself, the cheapest plan on Obamacare’s exchanges is the
catastrophic plan, which costs an average of $184 a month. (By
“average,” I mean the median monthly premium across California’s 19
insurance rating regions.)
The next cheapest plan, the “bronze” comprehensive plan, costs $205 a
month. But in 2013, on eHealthInsurance.com (NASDAQ:EHTH), the median
cost of the five cheapest plans was only $92.
In other words, for the typical 25-year-old male non-smoking
Californian, Obamacare will drive premiums up by between 100 and 123
percent.
Under Obamacare, only people under the age of 30 can participate in
the slightly cheaper catastrophic plan. So if you’re 40, your cheapest
option is the bronze plan. In California, the median price of a bronze
plan for a 40-year-old male non-smoker will be $261.