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Shocker: Affordable Care Is Looking Unaffordable

From a gob-smacked National Journal:

Obama’s Affordable Care Act Looking a Bit Unaffordable

Independent National Journal analysis finds premiums higher under Obamacare as employers weigh dropping coverage.

By Clara Ritger | August 29, 2013

Republicans have long blamed President Obama’s signature health care initiative for increasing insurance costs, dubbing it the "Unaffordable Care Act." Turns out, they might be right.

Has the Syrian Electronic Army hijacked the National Journal, too?

For the vast majority of Americans, premium prices will be higher in the individual exchange than what they’re currently paying for employer-sponsored benefits, according to a National Journal analysis of new coverage and cost data. Adding even more out-of-pocket expenses to consumers’ monthly insurance bills is a swell in deductibles under the Affordable Care Act.

What a revelation. Too bad they are four years behind the rest of us in reaching this conclusion. But that is the danger of only reading White House talking points.

Health law proponents have excused the rate hikes by saying the prices in the exchange won’t apply to the millions receiving coverage from their employers. But that’s only if employers continue to offer that coverage–something that’s looking increasingly uncertain…

Economists largely agree there won’t be a sea change among employers offering coverage. But they’re also saying small businesses are still in play…

You mean those economists who keep telling us prosperity is just around the corner? There will be a tsunami of employers dropping coverage. Why else did Obama delay the employer mandate for a year?

It’s a choice companies are already making. The number of employers offering coverage has declined, from 66 percent in 2003 to 57 percent today, according to Kaiser’s study…

You see? Employers were dropping coverage already. And it couldn’t be because they are doing it because they know Obama-Care is coming.

"To any small employer, it’s a no-brainer," said Devon Herrick, a senior fellow at the National Center for Policy Analysis, a conservative policy research organization. "If workers can get better coverage that’s subsidized, it makes sense for the employer to stop providing health insurance."

Whether the quality of care in the new market is comparable to private offerings remains to be seen. But one thing is clear: The cost of care in the new market doesn’t stack up. A single wage earner must make less than $20,000 to see his or her current premiums drop or stay the same under Obamacare, an independent review by National Journal found.

Holy moly! We’ve never heard that one before. In other words, unless you qualify for welfare and Medicaid, your healthcare premiums are going up.

That’s equivalent to approximately 34 percent of all single workers in the U.S. seeing any benefit in the new system.

34 percent of workers in the US make less than $20,000 a year? We don’t believe that. (Unless they are working under the table or getting government benefits as well.)

For those seeking family-of-four coverage under the ACA, about 43 percent will see cost savings. Families must earn less than or equal to $62,300, or they, too, will be looking at a bigger bill.

Those numbers include the generous tax subsidies designed to make the new system more attractive to consumers…

So, in reality, their premiums are going up, too. It’s just that the rest of us get to pay for them.

Premiums may be lower than predicted, but they’re not competitive with what workers are now paying for employer-sponsored care.

On average, a worker paid between $862 and $1,065 per year for single coverage in 2013, according to Kaiser’s numbers. For the average family plan, defined as a family of four, insurance cost between $4,226 and $5,284…

Looking at single versus family-of-four coverage against the federal poverty line, low-income households benefit most from Obamacare and the tax subsidies that defray costs. Those eligible for tax subsidies can make up to 400 percent of the federal poverty line, equivalent to $45,960 for one person and $94,200 for a family of four…

The truth is, Obamacare is doing what it was intended to do: make health care affordable for the nation’s lowest earners by spreading out the costs among taxpayers

In other words, even the National Journal now admits that Obama-Care is really just another form of income redistribution. Which is another thing we have been saying all along.

This article was posted by Steve Gilbert on Thursday, August 29th, 2013. Comments are currently closed.

3 Responses to “Shocker: Affordable Care Is Looking Unaffordable”

  1. Normally, I would say “Better late than never”, but this is just criminal.

  2. Liberals Demise

    Unaffordable?
    My dying arse.
    Unconstitutional is more like it.

  3. yadayada

    tis only the beginning. once larger businesses see that they can dump their employees health care and the fine being less than their share of the premiums…..




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