Affordable Obamacare: Don’t Be Too Sure


SupplementsI read, “Studies Show Varying Costs For Coverage Under Obamacare,” last week.  I cannot wait until the final premiums are published next month.  For over 3 years I have heard, so-called, experts screaming about how health insurance premiums are not going to be too bad.

When the exchanges start, next month, they will no longer be able to spread their speculations and poisons.  Once the exchanges become operational, we all will know the facts.

There is no question that millions of Americans who cannot afford health insurance now will be able to claim government subsidies.  That fact has been shouted by politicians and extremists across the land.  They have used the internet, TV and any other form of media to spread their misinformation.

Here is the rest of the story.  There are three facts that the politicians and media are not talking about.

AFFORDABILITY

The formula that the IRS will use to determine if a health insurance premium is affordable is flawed.  The IRS only consider a person’s income.  They do not care how much debt an individual has.

The IRS already takes roughly 20% of a person’s income in the form of taxes.  Self-employed Americans have to pay even more because of their extra Medicare taxes.

Obamacare says that these people are required to pay, as much as, 9.5% of their income to buy health insurance with benefits, like maternity and substance abuse, that they may not need.

That means that before Americans, who do not qualify for government subsidies, get to pay any of their other bills, they must pay government mandated payments of almost a third of their annual income.

Only after they have paid taxes and government mandated health insurance, are they able to make house payments, car payments, credit card payments, etc.

I feel for those parents who have saved for years to help them pay for their children’s college education.  I am afraid that parents are going to have to use some of the money they have saved for their children’s education to pay for government mandated health insurance.

I have a client who is going through a divorce.  According to her, she makes enough money that she is only going to get 13.5% of her health insurance paid by government subsidy since the IRS had determined that she can afford the 86.5% of the premium for health insurance.

Unfortunately, she will be a single parent with two pre-school children.  To say that a $500 increased expense is “affordable” to her is a joke.

COMPARISON

These “knuckle-heads” who are predicting that premiums will not approach rate-shock obviously are talking about something they do not understand.

Most of my clients have plans that pay 80% of medical bills after they have paid their deductible.  The plans that I have read, in every one of the articles that I have read that say the premiums will be “affordable,” are all focusing on the cost of Bronze level plans.  Those only pay 60% of medical bills after the insured pays a deductible.

In order to compare the costs of current plans with Obamacare plans, my clients who have 80% plans must look at Gold plans to get an accurate representation of how much coverage is going to cost.

People who have “value” plans, that only pay 70% of medical bills after a deductible, should compare the cost of Silver plans.

In order to keep their premiums “affordable” millions of Americans are going to have to accept plans with fewer benefits.

QUALIFICATION

Obamacare is skewed to be attractive to the Democratic voting base.  It stinks of the “Bread and Circuses” approach to politics that was used by the Caesars of Rome.

The wealthiest Americans are hardly going to feel the effects of Obamacare.  They already either self-insure or have optimum health insurance plans.

The other extreme of the economic spectrum, the poorest Americans will either qualify for Medicaid or for government subsidies.

Unfortunately, there is also a large middle-class in America.  Those of us who are either self-employed or work for a small business that does not offer health insurance are going to feel the economic pinch of Obamacare.

If we live in a HOUSEHOLD that earns greater than 400% of the Federal Poverty Level (see the chart to your right) we have to buy government approved health insurance but nobody, employer or government, is standing by ready to help us with the premium.

FIN

It sickens and angers me when I hear liberals sing the praises of Obamacare.  I want to vomit when I hear someone, who has never worked with insurance, say, “There will be affordable options for every American”!

The fact is that there will be options for every American.  That cannot be debated.  However, whether they will be “affordable” for every American is a different issue, entirely.

Unfortunately, the best that any middle-class American can do is to delay the inevitable.  Some state legislatures have removed that option.  Fortunately, I live in one of the states where there may be options to delay Obamacare for as long as a year.

Split 5

Advertisements