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Under Obamacare, some people will pay more for insurance and some will pay less

ObamaCare3

Jonathan Cohn of The New Republica is out with a worthwhile rundown on the effects of Obamacare, including the observation that some people in the health-insurance market will be forced to pay more than they do now, while “many other people, quite possibly the majority of people in that market, will pay less than they do now.”

Cohn adds that “even those paying more will be getting more comprehensive, more secure insurance.”

HERE are excerpts from seven points Cohn makes:

1. For the vast majority of Americans, very little is changing. Most Americans get insurance either through Medicare, Medicaid, or an employer. The Affordable Care Act isn’t doing much to alter premiums or out-of-pockets of these plans, at least for the time being…

2. One of Obamacare’s primary goals is to make sure everybody has a decent health insurance policy. Under the law, every plan should include a comprehensive set of benefits and put some limits on what people pay out-of-pocket…

3. Another major goal of Obamacare is to make sure all people can get coverage at uniform prices, regardless of pre-existing conditions. This is known as “guaranteed issue” and “community rating”…

4. Obamacare has already introduced some reforms to keep down the price of insurance. Some of these are designed to make medical care itself more efficient—in ways that, hopefully, will eventually reduce insurance premiums. Other reforms attempt to influence insurance prices directly, by, for example, limiting how much money insurers can siphon off for premiums and overhead…

5. Obamacare also has subsidies that offset premium increases for the majority of Americans. The value of the tax credits, which are financed by higher taxes on the wealthy and various cuts to government health care spending, varies depending on the incomes of the people receiving them. But in some cases they are worth several thousand dollars. That would be enough to wipe out any premium increases from the law’s new regulations…

6. Lots of people buying non-group insurance today will find they can get insurance for much, much less than they are paying today. Partly that’s because of the tax credits…

7. These factors will mix together in different ways for different people, depending on income, place of residence, and so on. There’s lots of disagreement about how many people will pay more versus how many people will pay less. (The experts I trust most continue to say that, most likely, the majority of people will end up paying less.) But even if those paying more are a relatively tiny percentage of the population overall, they will still be a large group in raw numbers. It’s a big country!

 

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6 Comments

  1. thehereandnow1

    If you like the doctor you have now, under the Affordable Care Act you’ll be able to keep that doctor, period. If you like the provider you have now, under the Affordable Care Act you’ll be able to keep that provider, period. Apparently Obama forgot to mention that when he made those comments (in 2009 and 2012) he made them on his Federally Declared ‘Opposite Days’. NBC News, hardly a right-wing lie machine like Fox (as libs would want you to beleive) is now reporting that the administration lied to the American people.

    If this were to happen during a Republican President’s watch the media would be demanding his head. Unabashedly liberal bloggers would be calling him evil and demanding he be taken from office. Well, how about this? We gonna hear anything.

  2. My current healthcare premium is $179 a month. That’s with a 10k deductible and 3 co-pay office visits a year. I started 3 years ago with a $5k deductible. My current healthcare provider told me my current plan is going away and the tax credits are not applied to their program. If I want to stay with them my current healthcare premium will go to near $500 a month beginning Jan 1, 2014.

    I’ve applied for Obamacare (ACA). It’s like applying for welfare. The application is over 2o pages long. You have to qualify for it which means it can become a process as more paperwork and income information can be requested.

    My choices are go through the Obamacare ACA plan and deal with the requirements of basically being on a welfare based system that has annual/semi-annual? re-qualifications, pay nearly $500 a month for basically a catastrophic coverage health plan (I can’t afford $500 a month), or risk not having insurance and on top of that, pay a fine.

    I think the recent NBC News report is more right than wrong.

  3. Relax,
    Valerie Jarrett Tweeted “Nothing in #Obamacare forces people out of their health plans. No change is required unless insurance companies change existing plans.”

    So you can rest assured that that if it does, President Obama doesn’t know and when he finds out he will get to the bottom of it.

  4. Valerie Jarrett is a liar.

    The ACA specifically forces people out of their existing health plans. Her tweet makes it sound like the insurance companies are choosing to change existing plans.

    False.

    They are required to change those plans. The new plans have to be more comprehensive and by necessity will be more expensive.

    It is the law.

    In addition, many of the exchange offerings are of the “narrow network” variety. So not only may the plans be more expensive they force you to use particular physicians and particular health systems. This forced choice isn’t necessarily based on cost or quality, it is more driven by the size of the health systems able to make the offering.

    So not only will you lose the plan you liked, you more than likely will lose the physician you liked as well under the new plan.

    Just because they didn’t read it in advance doesn’t mean the Democrats don’t have to own the impact of the law.

    • expdoc, I think wilson was being facetious. Back to the subject at hand, my current healthcare insurer, to the best of my knowledge, has elected not to be part of the ACA exchanges in the state I live in. They are not listed on the available providers list. My prior post explains my options.

      By the way, here is a website people can use that I’ve found helpful. It has more detail than some of the state run websites that are just as filled with “bugs” as the federal website. Just select your state, fill in all the info (be sure to page down for all of it), and the available healthcare exchange providers will show up along with what your premium will be and the tax credit you’re allowed based on your projected income. The further down on the page you go, the less expensive plans will show up. I’ve found if I use the back arrow function after I’ve gone to the page showing the insurance carriers, it changes the info you submitted, so always check to be sure the data you entered hasn’t changed. http://www.valuepenguin.com/

      By the way, why is there a federal ACA website for people to sign up for Obamacare through? I thought the states were managing the programs through the exchanges they’ve created. What is the difference with signing up at the federal level? Does anybody know? I signed up for Obamacare through the state office (community partner) my state has approved. We had to fill out a paper application because the state website one doesn’t work yet.

      I hope my info is helpful to people on this subject.

  5. thehereandnow1

    I have to wonder where Pat is? He hasn’t made any witty come-backs, calling people who disagree with this “bigot-boys”.

    Obama owns this. He intentionally deceived the American people (do not even dare to try and say that when he made his comments he didn’t know the truth, everything he says is fact checked and scrutinized). People knew the website wasn’t ready, yet they still insisted on pushing it out on Oct. 1. And this business about not revealing or not knowing enrollment numbers? B.S., they know dang well what those numbers are, and they’re not good. They just need until the middle of November to try and come up with the best spin.

    Back before the roll out people were mad and jealous because Congress would receive a 76% subsidy. Now they’re probably mad just because they were able to get in.

    In this age of ‘new math’ it’s time for ‘new spelling’. How do you spell disaster? Obamacare.

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