ThinkProgress: New Report: For 95% Of Americans, Obamacare Will Cost Much Less Than Expected
When uninsured Americans begin enrolling in Obamacare’s new health care exchanges on Oct. 1, the overwhelming majority — 95 percent — will face health care premiums that are 16 percent lower, on average, than the government had previously projected, according to a new report released on Wednesday by the Obama administration.
In the 36 states where the federal government supports or fully runs the Health Insurance Marketplace, a 27-year old who does not qualify for tax credits will pay, on average, $163 for a plan that covers approximately 60 percent of health care expenses (a so-called bronze-level plan), while a 27-year-old with an income of $25,000 could pay $83 dollars per-month after subsidies. Individuals up to 30 years old will also have the option of buying cheaper catastrophic coverage outside of the marketplaces, though they will not qualify for subsidies. A family of four in Texas with an income of $50,000 would pay as little as “$57 per month for the lowest bronze plan after tax credits,” the report finds.
NBC: $11 a month? Obamacare super-cheap for some, feds find
Bare-bones health insurance could cost just $11 a month for a family of four in Indianapolis on the federal government’s new exchanges, which start serving customers next week.
A similar family in New Orleans might pay as little as $23 a month, although they’d have to shell out $282 for a more generous “silver” plan, the Health and Human Services Department estimates.
And, on average, people will have more than 50 different health plans to choose from if they live in states where the federal government is running the exchanges, HHS says in a report issued Wednesday.
“Not only are premiums lower than they were, they’re lower than the most optimistic predictions.” —President Obama on Obamacare #CGI2013
— Barack Obama (@BarackObama) September 24, 2013
There is something missing in talking about ObamaCare and I think it is relevant. I am talking about actual cost of healthcare to consumers from a different perspective. In the actual post it talks about a bronze plan, which would cover 60% of charges. Now people might think that 40% is still a lot to pay, but we need to look at the baseline.
Let’s say a person has a $10,000 hospital bill, which isn’t hard to rack up nowadays, if they are uninsured. So they owe $10,000, right. Now let’s say they have the bronze coverage which pays at 60%. So they owe $4,000, right? Wrong.
All the payers have contracts with the different facilities and, in general, those contracts will average from 40%-50% below that regular billed charge. So that $10,000 bill is now reduced to (at the higher end) $6,000. After payment of 60% the individual has a bill for $2,400, significantly less that the $4,000 they might think they would owe.
As the plan level increases, the amount due shrinks drastically.
What does all this mean? The overall cost of health care shrinks as well.
The same applies to doctor visits and a whole host of other services, including prescriptions. And this last is very important.
Because, for the noninsured, prescriptions can be too costly, they do not buy them, which actually, over time, significantly increases cost of care, as well as other things, such as lost work time, loss of productivity, reduced income, therefore reduced money going into the economy.
These are the types of things that I don’t hear being discussed a lot.
President Obama’s speech at the UN was truly amazing. Complex, concise, pragmatic and substantive. #ObamaDoctrine. He defined US interests.
Get the facts – there’s now a permanent link in the sidebar on the right
ThinkProgress: The Remarkable Slowdown In Health Care Costs Since The Passage Of Obamacare
A new survey of health care premiums for employer-sponsored health care coverage shows that health care inflation is slowing, further undermining critics’ predictions that costs would skyrocket in the aftermath of the Affordable Care Act.
…. Other reports have also uncovered a slowdown in cost increases. The number of double-digit rate increases requested by health insurers in the individual market has plummeted over the past four years and Medicare’s projected spending between 2010 and 2020 had dropped by over $500 billion. Under the new cost scenario, the entitlement program would, by 2085, make up 4 percent of the economy instead of the previously projected 7 percent.
Annual growth of medical spending has also slowed “from a high of about 8.8 percent in 2003 to an average of about 3 percent per capita from 2009 to 2011, according to data reported in January by the U.S. Centers for Medicare and Medicaid Services.”
USA Today: States predict more insurance customers
Estimates from 19 states operating health insurance exchanges to help the uninsured find coverage show that at least 8.5 million will use the exchanges to buy insurance. That would far outstrip the federal government’s estimate of 7 million new customers for all 50 states under the 2010 health care law….
…. “It’s not a positive development for the Republican opponents who would like to see this fail,” said Paul Ginsburg, president of the Center for Studying Health System Change…..
Jamelle Bouie: Anti-Obamacare Rage, Once a GOP Hit, Fizzles Despite Town Halls
Tea Party Republicans had a huge hit with their rage against Obamacare. It gave them control of the House of Representatives in 2010, fueled their anti-spending crusade in 2011, inspired the most vocal of the GOP presidential candidates, and elevated a host of right-wing politicians to the Senate, providing a national platform for the crusade against the so-called government takeover of health care.
Hits aren’t built to last, however, and after a while, this one began to fizzle … The magic has fizzled so much that some Republicans have begun to walk away from the project altogether, even as others work to turn Obamacare funding into cause for a government shutdown.
… Heritage can play as many of the old tunes as it likes. When October 1 comes, the Affordable Care Act will be there, ready to confer benefits, provide security, and begin the slow transformation of American health care.
TPM: Rick Perry In Talks To Accept Obamacare Funding For Elderly
Texas Gov. Rick Perry (R), an ardent opponent of the Affordable Care Act, is in talks with Obama administration officials to accept an estimated $100 million in care for the elderly and disabled through Obamacare….
Texas health officials are seeking to enroll in the so-called Community First Choice program available via the law’s Medicaid expansion. Perry officially declined to enroll his state in the program, saying in April that expanding the program for the poor would make Texas “hostage” to the federal government.
TPM: Only One in Four Young Adults Know About Obamacare Exchanges
Only one in four young American adults are aware of the online health insurance marketplaces that will open on Oct. 1 as part of the federal health care reform law, according to a report released Wednesday.
In a survey of adults ages 19 to 29 by the non-profit nonpartisan Commonwealth Fund, just 27 percent said they knew they would be able to purchase insurance on the marketplaces, also known as exchanges, starting Oct. 1.
The young adult population has been the focal point of the Obama administration’s campaign to promote the marketplaces. The White House has said that it wants to enroll 2.7 million people ages 18 to 35 in the exchanges by next year; 7 million people in total are expected to sign up for health coverage.
The new report underlines the challenge that the administration faces in reaching that population….
Michael Tomasky: Republicans Move to the Center? Nope, They’re Crazier Than Ever
If you thought the GOP would adopt more moderate positions after its 2012 debacle, you were wrong. From debate threats to defunding Obamacare and even more purges, Michael Tomasky on how the insanity’s only increasing.
If you’d asked me six months ago whether the Republican Party would manage to find a few ways to sidle back toward the center between now and 2016, I’d have said yes. But today, on the basis of evidence offered so far this year, I’d have to say a big fat no. With every passing month, the party contrives new ways to go crazier. There’s a lot of time between now and 2016, but it’s hard to watch recent events without concluding that the extreme part of the base is gaining more and more internal control.