ObamaCare policies will cost more

Discussion in 'Wall St. News' started by nutmeg, Feb 11, 2013.

  1. The central parts of ObamaCare don’t roll out until 2014, but the wheels are already falling off this clunker. The latest news from four federal agencies is that 1) insurance will be a lot less affordable than Americans were led to expect, 2) fewer people than promised will get insurance and 3) millions of people who have coverage through a job now will lose it, thanks to the president’s “reforms.” Oh, and children are the biggest victims.

    The Affordable Care Act is looking less and less affordable.

    Start with the IRS’s new estimate for what the cheapest family plan will cost by 2016: $20,000 a year to cover two adults and three kids. And that will only cover 60 percent of medical bills, so add hefty out-of-pocket costs, too.

    The next surprise is for parents who thought their kids would be covered by an employer. Sloppy wording in the law left that unclear until last week, when the IRS ruled that kids won’t be covered.

    Starting in 2014, the law will require employers with 50 or more full-time employees to offer coverage or pay a penalty. “Affordable” coverage, that is — meaning the employee can’t be told to contribute more than 9.5 percent of his salary. For example, a worker earning $40,000 a year cannot be required to pay more than $3.800.

    But the law doesn’t specifically mandate family coverage — and now the administration says that won’t be required.

    You can see why: If the lowest-cost family plan (again, two adults and three kids) is to run a whopping $20,000, and if the employee’s contribution is limited to $3,800, the employer’s tab would be $16,200 — adding about $7.40 an hour to the cost of that employee. Wisely, the IRS announced on Jan. 30 that employers won’t have to pay for dependents.

    But the Congressional Budget Office’s much-cited prediction that ObamaCare would leave only 30 million people uninsured by 2016 was based on the assumption that kids would be covered by employers. At the very least, employers insuring their workers for the first time to avoid the penalty are unlikely to do that.

    So how will the kids be covered? They won’t. The IRS shocked the law’s advocates by announcing that the insurance exchanges won’t provide subsidies for a child whose parent is covered at work.

    Nor will these parents be penalized for not insuring their children — the IRS will kindly consider the kids exempt from the mandate.

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  2. The law will force millions onto medicaid plans( 900k in my state) which pay poorly to providers. If your practice is 5% medicaid that sucks but if it goes to 20% you are going to close . People that thought Obamacare was great are going to suffer , everyone will in some way.
  3. More BS lobbying on behalf of the businesses that are milking the system.

    Everyone know that if something is mass produces in a competitive market then costs do go down. This is just another scare tactic to get public opinion on the side of big business.

    Want to see cost saving? Go into a hospital and yell "INS or La Migra" and see how much the hospital will save that day in unpaid medical claims!
  4. Some health care is a lot cheaper then no health care. A simple $75 doctor visits at the emergency room is into the thousands.

    Just a FYI Obama Care is not social medicine. You still have a choice of the same insurance companies. You can pay what ever doctor you want privately for premium services. If your practice is doing so well then you can charge what ever you want to those who can afford your services.

    The only difference Obama Care will makes is that those who are taking advantage of the system wont be able to do it as easily. Lets put it this way. If you write a put and the stock plummets, then you eat the loss. These days if a health insurance company makes a bad bet then they just deny the claim. If insurance companies played fairly then there would be no need for Obama Care!
  5. clacy


    Ha! I'm an employer that covers about 25 employees and their families. This past year, our policy went up 53% before we shopped it and switched carriers. The lowest comparable policy we could find was a 35% increase.

    Starting in 2014, we'll have to cover our hourly employees, but the profit margin simply isn't there to do so. For our hourly employees, we'll have to reduce the amount of employees working full time. We will cut and cap hours at 28, so they fall under the 30 hour full time threshold.

    It's the only viable way for us to survive as a low per-employee profit margin business.
  6. I've been trying to find out what they consider minimum coverage to be. I've been to healthcare.gov and a few other sites but it isn't spelled out. Isn't coverage coverage? Isn't the deductible i choose to pay up to me? For me and 2 kids with a 6k family deductible is only 4500/year. It sounds like they judge "coverage" as to what you can "afford" to pay. Who the fuck are they to tell me what I can afford and can't?
  7. clacy


    I'm pretty sure they haven't even issued guidance on that issue yet. This whole thing is a total cluster fuck and anyone that's looked at it seriously knows this.

    There isn't one thing in this bill that helps reduce or at least slow the growth of health care costs.

    In fact, it accelerates it for most.

    The CBO now is saying that at least 7m people will lose their employer provided coverage because of it in 2013. That is insane.
  8. Don't know. My policy was renwed in Jan. They raised my deductible according to IRS guidlines.

    I'm going to give Obama the benefit of the doubt, I doubt he knew what he was doing.
  9. jem


    do you think anything done by obama pelosi and reid could be well designed and well executed?

    Seriously Harry Reid? anything but dirty politics? Pelosi, anything intelligent by directing money to her husbands business?

    It will take a lot of time and money and lost GDP and jobs to polish this turd.
  10. First of all you should know that when you pay for group health insurance it only costs about $250 a month per employee. There are way crappier plans that provide a lot less and also charge a lot less.

    I need to ask? Who do you think pays the bill when the uninsured get sick? It's prices into everything. What you need to understand is why health insurance is so expensive in the first place. It is that everyone from the doctors to the insurance companies are milking everyone.

    Finally, if you can't afford to pay $250 a month for each employee then either you are a MORON or Just STUPID! I think you are full of $hit and flapping your gums about what you heard from some taking head! Who in their right mind would hire an employee for such a small profit margin with the costs of workman's comp, the risk of getting sued and the risk of paying unemployment benefits.
    #10     Feb 12, 2013