I just heard the President say that six out of ten uninsured Americans shopping for health insurance in the Obamacare marketplace could find a plan that cost them less than $100 a month; less than their cell bill or cable bill as he put it.
Are you kidding me, really kidding me? Does anyone honestly think that 60% of uninsured Americans can buy health insurance of any value even with a tax credit for less than $100 a month? Think about that for a minute. The much promoted free birth control costs about $30 a month alone. If a person took advantage of all the free stuff now mandated they could bust a $100 a month in expenses.
Interestingly, not one news account of the speech that I could find made any mention of the less than $100 premium claim for 60% of those seeking health insurance.
I went to the marketplace premium estimator to get a sense for prices and tax credits based on the national average. I entered a person age 30, non-smoker earning $30,000 a year. Even in the lowest level bronze plan after the tax credit, the monthly contribution was more than $100 and that plan left them with considerable out of pocket costs. In a silver plan the individual would pay on average 30% of incurred costs and in the bronze plan 40% in addition to the premium.
In all fairness I have to admit that if you earn $20,000 a year and you live in zip code 36006 in Alabama you will pay less than $100 a month, barely. You will pay $1,021 per year or $85.00 a month. You could enroll in a Bronze plan for about $529 per year. Although you would pay less in premiums by enrolling in a Bronze plan, you will face higher out-of-pocket costs than if you enrolled in a Silver plan.
It would appear the next logical change in Obamacare is relocating the United States to Alabama. I lived in Alabama for two years, I think I’ll pay the higher premiums (no offense).
Here is the calculation based on the national average for a 30 year old non-smoker earning $30,000.
QUINNSCOMMENTARY 
It seems to me that the issue in about 9 – 12 months is going to be the rising level of bad debt and the rising level of bankruptcies (although this may take longer to materialize as they move through the legal system). Cheap premiums but expensive coinsurance.
Proof – the reinsurance tax $63 per person in both insured and uninsured plans that plan sponsors will need to pay. How many insured people are there in this country? Hundreds of millions…so go figure. Now that tax will only last for three years. So in three years you can expect the ‘affordable’ premiums to rise dramatically.
Then, when employers begin to move their employees into the exchanges the $2,000 -$3,000 penalty will have to increase or it will blow a hole in the Federal budget, like no other.
Oh, have you tried to enroll someone who doesn’t have insurance? Which plan do you want the one with the coinsurance at 60% or 70%? So what do I have to pay for that? The premium is . . . and your out of pocket costs will be 30 or 40% of the cost of the service. What’s the cost of the service? Well that depends on what you are having done. Well how about an emergency room visit? That’s where I go now? Well we don’t know. It depends on what you have done. Oh, so you don’t know the prices of the services I am buying?
I’ll just take the cheapest premium and take my chances… they can’t get blood out of a rock.
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