According to a new report released today by Democrats on the House Energy and Commerce committee , Obamacare may lead to a significant reduction in the cost of health insurance in some states.
Early filings show that insurers in some states are planning to lower their premiums after President Obama’s healthcare law takes effect, Democrats noted on Monday.
Democrats on the House Energy and Commerce Committee cited the initial rate filings to argue that the health law’s Republican critics have oversold the potential effect on premiums. [...]
Premiums the cheapest plan in Oregon are expected to fall by an average of 11 percent, and customers in Washington could see a price drop of 21 percent for the cheapest policy, according to the Democratic summary of state rate filings.
Why are insurers in some states planning to lower their premiums? Because they discovered that after they place their insurance plans on the exchange market, they would not be competitive without lowering the cost. And that’s the entire point of establishing a state exchange market. The point is to lower costs.
It’s the free market at work. Or as Republicans like to call it — big government socialism.