Millions of Americans now pay less for health insurance than seniors on Medicare – only $69 a month‼️

If you think this is good news and something to brag about, it isn’t. The rest of the premium is paid for by taxpayers and those credits will increase every year from now on. Now that the Affordable Care Act is well ingrained in our society, it will become another massive and costly entitlement; so much so that the Congressional Budget Office (CBO) says since it has been implemented it can no longer do cost estimates.

As you see below, the government claims “premium affordability.” Well, guess what, if you make 90% of my car payment, I can afford a Bentley convertible; any offers?

All of this spin reflects the convoluted thinking of the American left. The good news may be that millions more Americans have health insurance. The truthful news is that it still isn’t affordable. This is like saying a person can now afford lobster once a month because they are receiving food stamps.

The tax credits may have reduced the portion of the premium people pay, but they didn’t reduce the actual premium and they sure didn’t reduce costs.

Then there is this reality.

If you are on Medicare and a fixed income, perhaps just receiving Social Security, your basic premium is $104 .90 per month plus if you want full coverage, you buy a supplemental package at a monthly cost averaging $175. So while the Administration crows about younger Americans paying only $69 for insurance, seniors pay $280. What’s up with that?

I have news for the government, tax credits can make anything affordable – as long as you don’t run out of other people’s money. . . wait, scratch that; just add more to the national debt‼️

Following is a press release from the Department of Health and Human Services

New report shows premium affordability, competition and choice in the Marketplace in 2013-2014

Shoppers paid an average of $69 per month after tax credits for silver plans and had, on average, a choice of five health insurers and 47 plans

A new report released today by the Department of Health and Human Services (HHS) finds that people who selected silver plans, the most popular plan type in the federal Marketplace, with tax credits paid an average premium of $69 per month. In the federal Marketplace, 69 percent of enrollees who selected Marketplace plans with tax credits had premiums of $100 a month or less, and 46 percent of $50 a month or less after tax credits. Today’s report also looks at competition and choice nationwide among health insurance plans in 2013-2014, and finds that most individuals shopping in the Marketplace had a wide range of health plans from which to choose. On average, consumers could choose from five health insurers and 47 Marketplace plans. An increase of one issuer in a rating area is associated with 4 percent decline in the second-lowest cost silver plan premium, on average.

“What we’re finding is that the Marketplace is working. Consumers have more choices, and they’re paying less for their premiums,” said Health and Human Services Secretary Sylvia Burwell. “Nearly 7 in 10 consumers who signed up for Marketplace coverage are paying $100 or less for that coverage. When there is choice and competition, everybody benefits.”

According to today’s report, on average, monthly premiums for people who selected plans with tax credits fell 76 percent after tax credits, dropping the cost of the average monthly premium from $346 before tax credits to $82 after tax credits across all plan types. People who selected silver plans, the most popular plan type in the federal Marketplace, with tax credits paid an average premium of $69 per month.

The Marketplace is also providing consumers more easily comparable, quality health plan choices than ever before. In 2014, there were a total of 266 issuers in the Marketplace by state, offering over 19,000 Marketplace plans across all ratings areas, excluding catastrophic plans. Overall, 82 percent of people eligible to purchase a qualified health plan could choose from 3 or more health insurance issuers, and 96 percent could choose from 2 or more health insurers in the Marketplace. In 2014, new issuers represent almost 26 percent of all issuers in the Marketplace, and the new Consumer Operated and Oriented Plans (CO-OPs) tended to have lower premiums than other plans. Early reports from the states suggest that additional issuers will be entering the Marketplace in 2015.

Today’s report demonstrates that the new tax credits are working as intended to make premiums affordable, and the Marketplace is bringing much-needed competition to the insurance market. In addition, the Affordable Care Act includes a number of other provisions to keep premiums affordable. The rate review grant program provides states with resources to enhance their rate review programs. HHS has previously awarded nearly $238 million to states to enhance their rate review programs, and, since the passage of the law, the proportion of insurance company requests for double-digit rate increases was cut by more than half. Consumers saved nearly $1.2 billion on their premiums in 2012 when compared to the amount originally requested by insurers. Health insurance companies also now have to spend at least 80 cents of your premium dollar on health care or improvements to care, or provide a refund. In 2012, 8.5 million consumers received half a billion dollars in refunds – with the average consumer receiving a refund of around $100 per family.

To read today’s report visit: http://aspe.hhs.gov/health/reports/2014/Premiums/2014MktPlacePremBrf.pdf

This report claims the marketplace and competition are working. Let’s think about this. All insurers must operate under the same rules and mandates. All insurers are limited to no more than 20% in total administrative costs, now there is a move to require insurers to expand their provider networks. Just how much of the monthly premium do you think is subject to competitive pressures? And no, insurance companies do not have high profit margins, they are more in line with your local regulated utility.