Replies to post #112038 on Politics and Money

[ergo sum]

Didn't you tell us just a few days ago it was going up 50%?

[lesgetrich]

For one thing, those numbers are totally misleading. According to the article you cited...

In disclosing the 2017 rates, officials played down the impact of higher prices on consumers. They said that more than 8 in 10 consumers will qualify for ACA subsidies that will cushion them from the effects of more-expensive insurance. And they noted that as premiums go up, more Americans will be eligible for the tax credits.

In a conference call with reporters, two Department of Health and Human Services officials did not mention the average percentage increase in price. Instead, they briefly mentioned the smaller, 16 percent median increase — a statistic that has not been in previous years’ analyses.

Even this doesn't capture the reality since they are averaging the rate increases across states insteads of insured beneficiaries. A 116%+ increase in Arizona is averaged with a 7% increase in California despite their vastly different populations to give the impression that everyone will see an average increase of 22%.

The truth is The average unsubsidized premium in 2017 for the second lowest silver plan across the country will be $5,586. Back in 2009 the Congressional Budget office calculated that the average premium in 2017 would be $5,538. Consequently, Obamacare is pretty much on track of where it was supposed to be. Funding is not an issue as the cost is less than what was initially budgeted for, particularly since a number of Republican states didn't expand medicare (a cost savings for the feds). The problem is that in some states like Arizona, carriers initially set their rates too low and had to now adjust. Also, as I've said before, the loss of federal guarantees for reinsurance to carriers for catastrophic losses is forcing a one time premium increase in 2017. It's also the case that, individual premiums dropped 21% after the ACA went into effect and they are just now recovering above that level.



As it is, 83% of people on Obamacare receive a subsidy. 72% of the people on Obamacare can get coverage for under $75/month. Millions who've taken advantage of the medicaid expansion will see no increase at all.

So who exactly is getting hit with an increase? It falls heaviest on about 2 million people who are insured by Obamacare but receive no subsidy because they earn too much money. Simple solution, expand the subsidies to increase the earned income limit for eligibility and/or lower the Medicare eligibility age to 50 or 55. Also, we need to increase the penalty for not having coverage so that more young people will sign up.


LMAO If you really want change, vote out this do nothing disfunctional republican congress that has voted 60+ times to repeal Obamacare with no replacement. They would throw 20 million + people off the insurance rolls by repealing Obamacare and giving total control back to the insurance companies to make as much money as they want. How would you cover all those people who lose their subsidy? Get real!