Surprise Surprise!

Here is some interesting news, although I'm not surprised.

Greedy insurance companies that the right is so adamant in defending and blaming Obama and Obamacare for all those cancellations!

Why am I not surprised?


Surprise, surprise... Insurance companies are trying to cheat customers out of more money. Since the start of Obamacare, we've heard various reports of companies canceling insurance policies, and charging customers hundreds of dollars more each month to continue coverage. Well, it turns out that many of those cancellation letters were misleading, and failed to mention that customers could find better policies at lower prices on a healthcare exchange. -
So, about those cancellation letters... | Thom Hartmann - News & info from the #1 progressive radio show

There is a mixed bag of things happening here. Some people can find better plans at cheaper prices on the exchange. Others can find similar plans at about the same price, and some people are getting reamed with plans that cost significantly more. In some cases the new plans provide better coverage, but in some cases they do not. The only ones this is really affecting in a negative way are the few who are truly getting hit with higher premiums, especially if they are not eligible for any subsidy. What would be helpful is if Republicans and Democrats got together to address this issue and see if they could come up with a reasonable solution.

Here is one example of what is at issue. If you a couple in your 60's, you can purchase a silver plan in many states for around $13,000 per year. Being honest, that is pretty pricey. Here is the bigger issue though. If that couple in their 60's earns $62,000, they get a nice subsidy of around $7000, so they only have to pay about $6000. I'm rounding off to make it simple. Here is what sucks for many people. If that same couple makes $63,000, they get zero subsidy and must pay the full $13,000 for their insurance. Many of these people previously had decent plans that cost them considerably less. If you look at the premium of $13,000 for a couple earning $63,000 per year, you see that amounts to nearly 21% of their income and that doesn't even include their out of pocket. If they would happen to max out on their out of pocket at $12,700, they would be spending over $25,000 per year on healthcare or 40% of their income, which doesn't even account for their payments into Medicare which would up their percentage to about 43% of income.

While there are a lot of very good things about the ACA, it has some flaws. What is disturbing is that nobody wants to address the flaws in a positive manner that would actually be helpful to those who are being affected.
 

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