Obamacare Unaffordable For Many’

‘Health Insurance Costs to Increase Significantly Under Affordable Care Act,’ Many Will Face ‘Serious Sticker Shock’
‘Unaffordable For Many Low-Wage Workers’

“President Barack Obama's health care law is called the Affordable Care Act, but a glitch could make it unaffordable for many low-wage workers, including employees at big chain restaurants, retail stores and hotels.” (“Coverage May Be Unaffordable For Low-Wage Workers,” AP, 6/13/13)

• ‘Could be unaffordable for many’ “The law requires medium-sized and large employers to offer what it calls ‘affordable’ coverage or face fines. But policy experts and corporate consultants say the definition of ‘affordable’ can mean premiums up to 9.5 percent of an employee's income. And that could be unaffordable for many people making around $20,000 a year or a few thousand more.” (“Coverage May Be Unaffordable For Low-Wage Workers,” AP, 6/13/13)
• “…do the math from the worker's side: For an employee making $21,000 a year, 9.5 percent of their income could mean premiums as high as $1,995 and the insurance would still be considered affordable. …For a basic plan, they could also face an annual deductible amounting to $3,000 or so, before insurance starts paying.” Ibid

“Health Insurance Costs to Increase Significantly Under Affordable Care Act: The Department's preliminary analysis of the proposed plans for the individual market reveal that insurers expect the cost to cover health care expenses for consumers will significantly increase. Based on a report released by the Society of Actuaries earlier this year, the Department estimates this increase is an average of 88 percent.” (Ohio Department Of Insurance, Press Release, 6/6/13)

• ‘Average to cover those costs in 2014 is $420 representing an increase of 88 percent’ “Estimates from a Society of Actuaries study released in 2013 showed Ohio’s current average cost to cover medical expenses for an individual health insurance plan is $223. Based on the proposals submitted to the Department, the average to cover those costs in 2014 is $420 representing an increase of 88 percent when compared to the Society of Actuaries study.”Ibid</span
• “The number of Ohioans who buy individual health coverage directly from insurers is expected to more than double between 2010 and 2017, from 350,000 in 2010 to 735,000 in 2017.” (“Insurance Prices Still Unclear,” Columbus Dispatch, 6/7/13)

“… [M]any small businesses — defined by the health care law as those with up to 100 employees — could be in for serious sticker shock. ‘Based on what we’re hearing from small businesses, we believe that group could see the largest increases in costs,’ [Ohio Department of Insurance Director Mary Taylor] said.” (“Health Care Premiums Likely To Rise For Most Ohio Businesses Under ACA,” Dayton Daily News, 6/6/13)

• “… [T]he average rate increase for most small businesses are expected to increase between 5 and 15 percent next year, according to the ODI study…” (“Health Care Premiums Likely To Rise For Most Ohio Businesses Under ACA,” Dayton Daily News, 6/6/13)

‘A Huge Train Wreck Coming Down’

SEN. HARRY REID (D-NV): ‘Max said unless we implement this properly it’s going to be a train wreck, and I agree with him.’ “Senate Majority Leader Harry Reid (D-Nev.) says he shares colleagues’ concerns that the Affordable Care Act could become a ‘train wreck’ if it’s not implemented properly. … ‘Max said unless we implement this properly it’s going to be a train wreck, and I agree with him,’ Reid said…” (“Reid: More Funding Needed To Prevent Obamacare From Becoming 'Train Wreck,'” The Hill, 5/1/13)

• SEN. MAX BAUCUS (D-MT): “I just tell you, I just see a huge train wreck coming down.” (Finance Committee, U.S. Senate, Hearing, 4/17/13)

by William Warren

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