Nancy Pelosi famously opined on the pending Obamacare legislation: “We have to pass the bill to find out what’s in it.” They did pass the bill, and now millions of Americans are finding out -to their considerable dismay- “what’s in it.”
The title of this LA Times piece was “Some health insurance gets pricier as Obamacare rolls out.” Some? I have not heard any stories featuring excited citizens who will now be paying less for their health insurance. On the contrary, hundreds of thousands of people are having their old policies -the ones they liked, and could afford- summarily canceled because they don’t comply with Obamacare rules. Invariably, the new policies they have to choose from feature shockingly higher premiums and deductibles. Here’s just one more example from California:
Fullerton resident Jennifer Harris thought she had a great deal, paying $98 a month for an individual plan through Health Net Inc. She got a rude surprise this month when the company said it would cancel her policy at the end of this year. Her current plan does not conform with the new federal rules, which require more generous levels of coverage.
Now Harris, a self-employed lawyer, must shop for replacement insurance. The cheapest plan she has found will cost her $238 a month. She and her husband don’t qualify for federal premium subsidies because they earn too much money, about $80,000 a year combined. “It doesn’t seem right to make the middle class pay so much more in order to give health insurance to everybody else,” said Harris, who is three months pregnant. “This increase is simply not affordable.”
On balance, many Americans will benefit from the healthcare expansion. They are guaranteed coverage regardless of their medical history. And lower-income families will gain access to comprehensive coverage at little or no cost.The federal government picks up much of the tab through an expansion of Medicaid and subsidies to people earning up to four times the federal poverty level. That’s up to $46,000 for an individual or $94,000 for a family of four.
But middle-income consumers face an estimated 30% rate increase, on average, in California due to several factors tied to the healthcare law.Some may elect to go without coverage if they feel prices are too high. Penalties for opting out are very small initially. Defections could cause rates to skyrocket if a diverse mix of people don’t sign up for health insurance.
Pam Kehaly, president of Anthem Blue Cross in California, said she received a recent letter from a young woman complaining about a 50% rate hike related to the healthcare law.” She said, I was all for Obamacare until I found out I was paying for it,” Kehaly said.