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On Friday a new report released by the Centers for Medicare & Medicaid Services concluded that under the Affordable Care Act 11 million small business employees may see their premium rise.

According to the report higher rates are partly due to the Affordable Care Act’s requirement that premiums can no longer be based on a person’s age.  This stipulation now has premiums increasing for younger workers and decreasing for older people.

The Centers for Medicare & Medicaid Services also noted that the report looked at the specific provisions of the Affordable Care Act.  Employers will also be basing their decisions on more factors then just the three listed in the report.

The report was requested by House Speaker John Boehner and was due at the end of 2011, and as expected Republicans jumped on this report.

 “This is another punch in the gut for Americans already struggling in the president’s economy,” Boehner said in a statement. “It’s clear why the administration sought to delay and deemphasize the release of this report. It undermines the central promise of the president’s health care law: affordable coverage.” 

“These 11 million people who will see their premiums spike are 11 million more reasons to repeal this law and start over with common sense reform that will make care more affordable, not more costly.”   

This report by Centers for Medicare & Medicaid Services further complicates matters for the president as a few weeks ago the Congressional; Budget Office reported the Affordable Care Act will have a negative impact on employment.

House Small Business Committee Chairman Rep. Sam Graves, R-Mo., issued a statement “The fact that two-thirds of Americans who work at small businesses will see premium increases because of the health law is devastating news. This is one more in a long line of broken promises from President Obama and Washington Democrats.”

Joanne Peters, a spokeswoman for the Department of Health and Human Services told the Wall street Journal, “Since the Affordable Care Act became law, health-care costs have been slowing and premium growth has slowed to the lowest rate in years,” and also “The law is making it easier for businesses to offer coverage.”

The Affordable Care Act has always been predicated on the fact that younger workers would offset the cost for older and less healthy individuals.

What happens come March 31st when the government doesn’t reach the mark of 7 million as reported by the CBO?

At a private fundraiser in Minneapolis, Vice President Joseph Biden stated, “we may not get to 7 million, but if we get to 5 or 6 million that’s a hell of a start.”

If the Vice President admits they may fall way short of the needed number to keep the care law solvent then what happens after that point?  Will premiums rise for everyone or will the insurance companies need a federal bailout?

What most Americans do not realize is in the Affordable Care Act has a provision that allows a federal bailout of insurance companies if needed to keep them solvent.

Let’s begin asking these questions now instead of waiting until after the storm arrives come March 31st.      

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