Saturday, 9 February 2013
New ObamaCare Rule Dumps Lower Income Families
That's the first thing about ObamaCare - when the law was passed, many of the rules and mandates hadn't been made up. Another new rule will shock lower income families.
The new rule dictates that if a worker can afford (based on 9.5% of the worker's income) an individual health insurance policy, the family gets no help from HHS for a family policy. In the example a employee making $30,000 could possibly purchase a individual health care policy (with the employer paying the largest portion) for under $1,000. This is way below the 9.5% threshold so the employee is deemed to get no government subsidy. However, the family policy might cost as much as $15,000 and not receive much if any employer contribution. $15,000 is of course way over the 9.5% threshold but the family gets no subsidy!
So think about the incentives here. If I work a lower income job I can insure myself but not my family. However, if I work no job, both my family and myself get "free" medical insurance worth approximately $20,000. That means I'm working for about $10,000 a year. Why would I do that when I can get government assistance for housing and food to make up that $10,000 deficit?
Oh, and for and irony alert - Owebama has told Democrats that he will be addressing jobs and the economy in his State of the Union address.
Posted By P.Brown at 9:00 AM in Category:Health Control
26 Feb 2013
The mandate isn't in efecft yet. Within the mandate there are provisions for people who can't afford it. If you're poor enough you eventually fall under medicaid and medicare. As far as what it does for the cost of health care is it forces everyone in one way or another to be paying into the system. You can currently choose whether or not to get insurance. Many of the people who choose to forego it are healthy. If something catastrophic happens to them though they don't just die or go untreated we treat them anyways and the cost gets put into the insurance plan that only a portion of the people bought.Say you have 10 people. 7 chose to get health insurance the other 3 didn't need it. At the end of the year 4 of them needed some major work and it added up to $20,000 in costs but the rest were healthy. If only 7 are paying into the system it would cost each person $2857 whereas if all 10 bought into the system it would cost each person $2000. Now you could say this unfairly burdens the healthy people who don't yet need the insurance with $2,000 in new costs. That's true, but in the above example I didn't say who was healthy and who wasn't healthy vs who had insurance when they got sick and who didn't because they all get treated anyways. You can't make that distinction. So ObamaCare greatly widens the pool of people on health insurance to pretty much everybody in some fashion. Insurance companies get about 30% more customers lowering the amount an individual has to pay into the system but raising the total amount of money going in.As far as the runaway costs of medical care (a hospital bed costing $1000 a night) I'm not sure whether or not there's any real changes coming through with ObamaCare.References : Was this answer helpful?
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