I mean no political over-tones. It makes no difference if you are on the political left or right. The fact is that starting in October every American is going to need to enroll in a government approved Essential Benefit Plan unless they are exempt for one reason or the other.
I ignore the predictions of politicians from both the left and right. As far as I am concerned, politicians from either the Democratic or Republican party must earn my trust again. I do not believe either of them.
Obamacare mandates that every American have health insurance but stops short of fixing prices for either medical providers or insurance companies. Since the government is not willing to take care of all my health care bills, I listen to the ones who actually decide on the prices that will be charged.
State laws require insurance companies to collect enough money to pay for the anticipated medical bills from all their members. When medical providers raise their fees, insurance companies have no choice but to raise their rates.
When all the speculation and finger-pointing is over, one thing will remain the same. The insurance companies are predicting that they will be forced to raise their rates significantly for plans that start on January 1, 2014.
Those rates will be made public in the late summer or early fall. Until they are, I am recommending to my middle-class clients, and every one who reads this blog, that you pay off as much debt in 2013 as possible.
If I am surprised and rates for health insurance do not increase as much as I have been warned, the worst thing that could happen to you is that you do not have to pay as much interest.
However, if the predictions I am hearing are true, you will have no choice but to pay for Obama’s Essential Health Plan. The money that you have been sending to the credit card company can be used to pay for your new health insurance plan.
Just be advised that none of the new plans will pay your non-medical bills (e.g. mortgage, car payment, groceries, etc.) while you are recovering. Unless you have 3-6 months worth of income in savings that you can live on until Social Security Disability Income starts, you will need either a Disability Income or Critical Illness insurance plan to supplement what Obama’s Essential Health Plans do not cover.