Obamacare Relief: 4 States Where Costs Could Fall 20%

Much has been made of health-insurance premiums rising under the Patient Protection and Affordable Care Act, also known as Obamacare. Yet although many states have indeed seen premium increases, others are expected to see extensive declines. A recent study from the Manhattan Institute looked at premiums across the country to figure out which states would end up seeing the biggest cost savings from Obamacare.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the results of the study and finds that in four states, premiums under the Affordable Care Act are slated to more fall by 20% or more. Dan runs through the four states, noting that in New York and Colorado, declines will be roughly equal across the board for those of all ages, especially with New York having stable rates statewide. Meanwhile, in Ohio, young men will pay more, but older residents will get the lion's share of the cost savings under the Affordable Care Act. In Massachusetts, middle-aged residents will save the most under Obamacare.

Dan goes on to discuss how these results generally reflect the high-quality insurance policies these states already made available to their residents. At the same time, he notes that health-insurance companies Humana (NYSE: HUM  ) , WellPoint (NYSE: WLP  ) , and UnitedHealth Group (NYSE: UNH  ) could earn less revenue in these states because of the lower premiums. At the same time, though, Dan points out that other rules under Obamacare would have limited insurers' ability to generate profits beyond a certain point in any event.

Make the most from Obamacare
In some places, Obamacare offers cost reductions, but will you get your share? Make sure you learn everything you can about the Affordable Care Act to maximize your savings. In only minutes, you can learn the critical facts you need to know in a special free report called "Everything You Need to Know About Obamacare." But don't hesitate; because it's not often that we release a free guide containing this much information and money-making advice. Please click here to access your free copy.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 10, 2013, at 6:27 PM, peckbill wrote:

    The GOP shouldn't wait to long before dumping the Tea Party and throwing their support behind the ACA. American people have long memories and memories have relatives

  • Report this Comment On November 10, 2013, at 6:27 PM, peckbill wrote:

    There are still a lot of problems with who can apply, where they can apply and what do they need to be qualified. I am aware of one male that is unemployed, is medically not able to work that was told he has to get a medical evaluation (to get a medical evaluation, the hospital wants over $200.00 up front for the evaluation. Where does he get the money? He gives up and stays on the list as one that doesn’t apply) before they will give him Medicaid. The workers in the field are either not knowledgeable or they are discouraging young people from applying. Training and guidance is needed in the field; not just at the federal level. A major factor tied to low sign ups by the young is the availability of information about what is happening in the individual states. The young people are not getting the word and do not know what is happening, i.e., 23 states are currently expanding Medicaid, 4 states have a customized Medicaid expansion, 4 states are undecided about Medicaid expansion and 20 states are currently not going to expand. Get the word out, put pressure on the states and you will see an increase in the number of young adults signing up on the ACA websites. Keep hiding the information and the program will dies for lack of inputs. Young people operate in a crisis mode; if there is not a crisis they would rather do nothing but visit with friends they are not supposed to be with, drink what they are not supposed to drink, eat only when starving or junk food, treat money as though it were trash and give it away to a friend or buy junk with it. They have a brain that is not yet developed and it probably won't develop for years to come; some brains will never develop because of burn out. Girls think of boys and what is hung between their legs and boys think of girls and what is between their legs; both often think with these body parts. When they get sick it is an emergency or Mom and Dad take care of them. Trying to entice young people to do the right thing is almost impossible. This is a very big mistake that was made with the ACA. Also keep in mind that many young people, especially males, are out of work or have only part time employment and should qualify for Medicaid, but they will not apply because they are lazy and/or believe that anything that is free has attachments tied to it and they want nothing to do with it. Many young males try to apply for Medicaid and are turned away because they cannot prove that they are unemployed or disabled and are told the program is for women only or males below 18 years of age, or they must get a medical evaluation; where is the money coming from to get a medical evaluation? Should the GOP help with the ACA, the use factor would be very high and people would like and accept it as they do Medicare.

  • Report this Comment On November 10, 2013, at 6:42 PM, jrosiak2 wrote:

    Why has motley fool decided to make themselves a "soap box" on what appear to be political issues??? You may not agree that this is a political issue but it surely is not an investment issue. That's not at all why I signed up for fool.com.

  • Report this Comment On November 10, 2013, at 6:55 PM, Mathman6577 wrote:

    Wasn't this same group predicting complete success for the ACA in 2010?

  • Report this Comment On November 10, 2013, at 7:45 PM, ron2cu wrote:

    Getting farther and farther left and biased.

  • Report this Comment On November 10, 2013, at 7:46 PM, JePonce wrote:

    In Wyoming 30 people signed up for Obunglecare, and 35,000 got letters of cancellation from their insurance companies.

    As doctor Carson said, "Obomacare is the worse thing that has happened since slavery."

    Democrats, the party of the KKK is responsible for both.

  • Report this Comment On November 10, 2013, at 7:48 PM, richardsbr2000 wrote:

    And 46 States where costs could rise 80%!

    How in the world would anyone, expect to pay less for health care, when 30-40 million people (most of which cannot pay for their Obamacare) are being added?

    Is it...that no one understands Mathematics, in America....anymore? Have we become that stupid?

  • Report this Comment On November 10, 2013, at 7:49 PM, JePonce wrote:

    This year taxpayers will have funded Democrat entitlement and welfare programs costing $4,178,017,000,000. Yes, folks, that is $4,2 Trillion dollars.

    Who knows the costs with Obunglecare?

    The Cloward-Piven Strategy to be certain.

  • Report this Comment On November 10, 2013, at 9:48 PM, RFTECH3000 wrote:

    peckbill you are clearly delusional !

    But you are correct - people HAVE A MEMORY especially the 12M who get their insurance cancelled and they remember quite well who voted for this mess and who don't !

    Better take a good look at the senate democrats because you wont see a bunch of them back in 2015 !

  • Report this Comment On November 10, 2013, at 9:50 PM, RFTECH3000 wrote:

    What ever happened to the $2500 drop Obama promised ? mine went UP almost $3000 but then since when does Obama tell the truth about anything ?

  • Report this Comment On November 10, 2013, at 9:51 PM, RFTECH3000 wrote:

    the only states it goes down are the states who already had sky high premiums to begin with !

  • Report this Comment On November 10, 2013, at 9:51 PM, RFTECH3000 wrote:

    Since when became this site a propaganda arm for the WH ?

  • Report this Comment On November 10, 2013, at 9:52 PM, RFTECH3000 wrote:

    Get ready for the big laugh when the enrollment numbers come out next week !

  • Report this Comment On November 10, 2013, at 9:55 PM, RFTECH3000 wrote:

    the ACA will collapse under its own weight , young people don't sign up because they don't like to be forced into anything and they don't feel that they need insurance , and the people who got cancelled look at the exchanges see the rates, the deductibles and the microscopic network and then decide to do without !

  • Report this Comment On November 10, 2013, at 9:57 PM, RFTECH3000 wrote:

    if Obama was smart he would resign asap and get as far away from this country as possible because people are NOT happy

  • Report this Comment On November 10, 2013, at 9:58 PM, RFTECH3000 wrote:

    I got my insurance cancelled , cheapest replacement plan costs $354 a month BUT $6000 deductible and I have to drive 50 miles to find a doctor , do you really think I wast my money on this ?

  • Report this Comment On November 10, 2013, at 9:59 PM, pacapacajack wrote:

    My employer based group health insurance plan this year has changed a little from last year (not as good as last year or the years before) and my premium will cost over $100 more a month. Not happy!

  • Report this Comment On November 10, 2013, at 10:00 PM, jesscaruso wrote:

    Wow, I really didn't expect to run into a bunch of racist , fact denying, birthers on this site. I find it really hard to believe that the people of this country are so close minded and full of hatred. Not the country that I signed up to defend. You all should be ashamed of yourselves.

  • Report this Comment On November 10, 2013, at 10:01 PM, pacapacajack wrote:

    Let me add this ... I checked out the healthcare website and for something similar to my group based plan would cost over $1400 a month (real close to $1500 a month)!!! How in the heck can someone afford that? They can't! Prior to OC you could get COBRA for less than that and keep your coverage!

  • Report this Comment On November 10, 2013, at 10:05 PM, RFTECH3000 wrote:

    So here is what we got :

    about 12M in the individual market will LOSE coverage , according to recent surveys only 1% of those people are planning to check out the exchanges , 80% state that they will take the fine 9% will look on the individual market for new plans and 10% are undecided !

    BUT those are NOT the numbers that should scare the democrats - the much bigger problem already rears his head now in the form of cancellation notices that are send out for small business groups with less than 50 people , this will affect mostly small businesses who offer benefits despite the fact that they are not required to do so .

    My son runs a machine shop and they got a notice that their small group policy will be cancelled in December , the premium for the ACA compliant replacement is 3 times what he pays for him and his 10 employees now !!!!

  • Report this Comment On November 10, 2013, at 10:07 PM, RFTECH3000 wrote:

    ooh pulling the race card again !

    are you guys never get tired of this ? sorry I don't base criticism on race but on performance and obamas performance is clearly not up to par !

  • Report this Comment On November 10, 2013, at 10:10 PM, RFTECH3000 wrote:

    @ jesscaruso

    what facts are we denying ? enlighten us please !

    do you imply that we cant read the cancellation notices or the rates given on healthcare.gov ?

    I am sorry but there are actually people who do research things and not just sign up for a plan on healthcare.gov based on the statements of a person who has not been spoken the truth since he got inaugurated !

  • Report this Comment On November 10, 2013, at 10:11 PM, RFTECH3000 wrote:

    the only person who should be ashamed is Obama as he has knowingly and willingly lied to the people !

    I would start listing them all but there is not enough room here

  • Report this Comment On November 10, 2013, at 10:16 PM, RFTECH3000 wrote:

    oh what the heck lets just start for the heck of it :

    1.) creating the most open and transparent administration !

    2.) posting of the full healthcare bill on the internet for 7 day BEFORE the vote !

    3.) broadcasting all debates regarding the healthcare bill on CSPAN

    4.) if you like your plan you can keep it

    5.) if you like your doctor you can keep it

    6.) premiums will go down by $2500 for everybody

    7.) I didn't have sex with this woman -- oh sorry that was another pathological lying prez

    8.) the old plans got canceled because of the insurance companies

    9.) you get a better deal at the exchanges

    10.) Benghazi was a demonstration that got out of hand

    and there are PLENTY more

  • Report this Comment On November 10, 2013, at 11:01 PM, AC111 wrote:

    My insurance rates in CA have doubled thanks to Obamacare.

  • Report this Comment On November 11, 2013, at 12:52 AM, JimK525 wrote:

    Obamacare backers only talk about "premiums" going down. You need to add deductibles into the equation. What good is a $50 reduction in premium if the deductible goes up by $3000?

  • Report this Comment On November 11, 2013, at 8:59 AM, Mathman6577 wrote:

    When do you measure success of a government program? When 4 states out of 50 (8%) MIGHT have lower insurance rates. what about the other 92% of the states?

    @JimK525 makes a great point. An increased deductible is really a cost increase.

  • Report this Comment On November 11, 2013, at 9:13 AM, Whoopdedoo wrote:

    Tim (author). To find the 4 states that went down in premiums you had to probably go thru the other 46. Why not release those numbers? Only a "Fool" would produce numbers for 8% of the states. The 92% numbers would touch more of your readers.. no?

  • Report this Comment On November 11, 2013, at 9:38 AM, CaptAmericaa1 wrote:

    Its nice to know that obamacare isn't a complete, total, abject failure without any redeeming features. There ARE a few people that will benefit.

    So take that you racist, hillbilly, regressive, misogynist, tea baggers trying to roll back obamacare. Sure it cost a billion dollars, but we've helped dozens of people. And that's only so far.

    {warning - this post contains heavy sarcasm. Those offended should read something else}

  • Report this Comment On November 11, 2013, at 9:42 AM, sagehopper wrote:

    Let's see, here..4 states where the premiums "may" go down, balanced with 46 states, AND DC, where they WILL go up..That's not a good balance.

  • Report this Comment On November 11, 2013, at 9:59 AM, cdopa wrote:

    I have been uninsured for 15 years due to a migraine condition. No insurance company would give me insurance that would cover any care regarding migraines unless I had no treatment for migraine for 6 months. (Which is impossible in my case). Now, with the ACA, I will have BCBS, 800, deductible, max 1500 yr, 80/20 plan, and a dental plan for 225 bucks a month. This does not sound like all the doom and goom thats being spread around. This is life changing for me. Im in Michigan, BTW.

    I think crappy insurance company practices by some companies are causing the cancelations (they make no $ so they pull the plug on their customers). They are happy to let Obama take the blame.

    Funny how none of the CEO's of these healthcare companies are complaining about the ACA...oh yea, record profits, soaring stocks, and huge bonuses tell them things are just fine.

  • Report this Comment On November 11, 2013, at 10:05 AM, drakeiverson wrote:

    I live in Oregon (a "Blue" state). My rates dropped nearly 50% with the ACA. The states that are having the worst problems are "Red" (Republican governed). This is not a "coincidence" people. The GOP is intentionally sabotaging the healthcare LAW in order to defame the Democratic party--even if it means causing harm to their own citizens. Face it, the GOP does NOT care about you or your children. Never did. Never will.

  • Report this Comment On November 11, 2013, at 12:11 PM, davidzzz wrote:

    Hillary/Davis 2016 16 Years!! Yea!!!!!

  • Report this Comment On November 11, 2013, at 3:09 PM, jus1sayin wrote:

    Hillary would be the last person I'd vote for...even if she were running for dog catcher!

    Those drops in insurance rates will only be temporary. As soon as registrations are completed and the insurance companies discover that not enough young, healthy people have signed up to make up the difference, they will be forced to raise their rates. And all people have to do is not sign up (unless and until they become seriously ill), make sure they don't overpay their taxes (since their tax refund is where the fine comes from) and this illegal tax law will self-destruct.

  • Report this Comment On November 11, 2013, at 3:18 PM, nmwander wrote:

    In a related story, Motely Fool Dan Caplinger, reports that he almost saw a unicorn thru the mist somewhere in NY.

  • Report this Comment On November 11, 2013, at 3:20 PM, nmwander wrote:

    One of those important lessons in life.....

    If your stock broke, for instance, say Dan Caplinger, is pushing a stock really hard......then its probably NOT a good investment.....

    The Broker is just getting a commission for pushing sales..............

  • Report this Comment On November 11, 2013, at 6:52 PM, peckbill wrote:

    The following States have decided not to expand Medicaid as outlined in the ACA: ID, WWY, UT, SD, NE, KS, TX, OK, MO, LA, WI, MI, AL, GA, FL, SC, NC, VA, ME and AK. The list looks familiar; think of the States with GOP governors (maybe some will change as they lose to Democrats or gain some common sense. How do you explain to people who need the care expanded Medicaid provides that they can’t have the expanded Medicaid because you (the governor) don’t like it??!! There are millions of poor and underpaid people that could use the expanded Medicaid and the cost to you who have could brag about sharing with the have nots; that would be too easy because you would have to give up a little of your ill gotten gains. Doesn’t the decision not to love your fellow man/woman or child shame you or does it bring shame only to your family? You can always say you just don’t care about the lower class. The Congressman from Michigan gave a very moving speech on Obamacare the Patient Protection and Affordable Care Act); it could well apply to the lower class people do not have adequate medical care available. He said, “why should we punish 85% of the people to give medical care to 15% who cannot afford or get medical coverage”? Why not? Isn’t that what makes America great and separates it from other third world countries?

  • Report this Comment On November 11, 2013, at 8:05 PM, johnestromjr wrote:

    If you believe that BS out of Obama then I'd like to offer you a bridge I've got for sale.

    If you like your gun.... you can keep that too.

    SURE YOU CAN

  • Report this Comment On November 11, 2013, at 10:35 PM, quacker wrote:

    20 percent decrease for very few,but cancellations and 50 percent and even higher increase for many

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