Obamacare Deductibles Might Remove ‘Affordable’ From ACA
Speaker of the House John Boehner is discovering — and sharing — the aspects of his new Obamacare insurance plan. “My health insurance premiums are going to double, my co-pays and deductibles triple under Obamacare,” Boehner said during a recent weekly address. “I’m thrilled to death, as you can tell.”
Boehner’s predicament may become commonplace. Sector & Sovereign Research issued a report in early December analyzing health plans offered for 2014. The focus was on individual insurance plans, and if people want to match 2013 coverage to 2014 coverage, the cost to do so will be “substantially more in 2014 than in 2013.”
Deductibles are the fixed amount a person will pay before the insurance company begins to contribute to covered medical expenses. The deductible falls within a certain period, normally a year. The result of the high deductible for some will be a higher out-of-pocket expense for health coverage in the individual market.
In the individual market, the young and old will see the highest deductible increases. A 21-year-old, Sector & Sovereign says, would see an increase in costs of 81 percent; at 64, the increase in cost is 64 percent. For a 40 year old, the increase is more modest in comparison, but is still 29 percent higher.
The subsidies will provide assistance and make health insurance more likely for certain groups, such as those who are 21 years old who have incomes below 200 percent of the federal poverty level. However, when an individual falls outside of the age/income threshold, they become less likely to purchase insurance on the exchange due to the prohibitively high deductible costs. Sector & Sovereign says this is because “health insurance in the market for individually-purchased coverage will offer less value for money in 2014; accordingly these persons are more likely to be uninsured in 2014 than in 2013.”
On Fox News Sunday, Dr. Ezekiel Emanuel was asked about people who want to maintain their current doctor, and if the President’s promise about being able to keep your doctor was truthful. “Yes,” Emanuel said, “If you want to pay more for an insurance company that covers your doctor, you can do that. This is a matter of choice.”
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