Tag Archives: Obamacare

From John R. Graham at healthblog.ncpa.org:

The Congressional Budget Office’s latest budget estimate shows Obamacare’s costs per beneficiary have exploded, as enrollment in Obamacare’s broken exchanges collapses. January’s update estimates 2016 exchange enrollment at 13 million people (p. 69). Although the Administration had previously downgraded its estimate of Obamacare enrollment, this is the first significant change by the non-partisan CBO.

What is really shocking is the January update still estimates tax credits, which subsidize insurers participating in exchanges, will cost taxpayers $56 billion this year (p. 182). That amounts to about $4,308 per enrollee (although not all are subsidized). Back in March 2010, CBO estimated that 21 million people would be covered in exchanges in 2016, for a total cost of $59 billion in tax credits (pp. 20-23). That would amount to about $2,810 per enrollee.

As recently as March 2015, CBO was still assuming 21 million enrollees in Obamacare’s exchanges this year (Table 2). In the January update, the CBO has only changed its estimate for 2016 enrollment, not future years. Next March’s update will include a more thorough analysis including future years, and we can expect those estimates to be similarly downgraded.

This leads to the conclusion that Obamacare exchanges are, in fact, high-risk pools for sick individuals who cannot get coverage elsewhere. They are not a properly functioning, broad-based, market for health insurance.

And, by the way, the CBO confirms that Obamacare kills jobs:

CBO anticipates that several developments in federal fiscal policy under current law will affect the economy through their impact on the labor market. The most sizable effects stem from provisions of the Affordable Care Act (ACA). The ACA’s largest effect on the labor market—especially as overall employment conditions improve—will come from provisions of the act that raise effective marginal tax rates on earnings, thereby reducing how much some people choose to work. The health insurance subsidies that the act provides through the expansion of Medicaid and the exchanges are phased out for people with higher income, creating an implicit tax on some people’s additional earnings. The act also directly imposes higher taxes on some people’s labor income. Because both effects on labor supply will grow over the next few years, CBO projects, they will subtract from economic growth over that period.

(“The Budget and Economic Outlook, 2016 to 2026,” Congressional Budget Office, January 25, 2016, p. 38.)

http://healthblog.ncpa.org/obamacares-cost-per-beneficiary-explodes-with-shrinking-enrollment/#sthash.U82pWhXs.dpuf

From CNBC, with an introduction by Jim Quinn at theburningplatform.com:

So in the real world, the cost of healthcare – even for Obamacare enrollees – uses up at least 10% of people’s annual income. The Obamanistas blather about the low subsidized premiums, but NEVER talk about the $6,000 deductibles because that obliterates their false narrative of affordable healthcare for all.

Our friends at the BLS declare that medical costs only account for 7.7% of household costs and are only going up by 2.9% per year. Isn’t that precious? They underweight the expenses dramatically and then they have the balls to tell you your healthcare expenses are going up at 2.9% per year when you know they are going up by at least 10% per year. Obamacare is essentially a never ending proctology exam for the American people. Bend over folks.

Via CNBC

You might not be reduced to living on Ramen noodles if you buy Obamacare coverage — but your bank account certainly could feel a bit leaner.

A new study reveals that many Obamacare customers pay more than 10 percent of their incomes toward coverage. And the share of income eaten up can be much greater for some people, particularly if they use a lot of health services under their plan.

One in 10 Obamacare customers who earn between just two and five times the federal poverty level will have coverage costs that exceed 21 percent of their incomes, an analysis by the Robert Wood Johnson Foundation and the Urban Institute found.

And the median Obamacare customer who earns in that range spends more than 10 percent of their income on monthly premiums and out-of-pocket health expenses, the analysis found.

“Many who have modest incomes have high financial burdens even with average medical expenses,” the report said. “For those at the top of the [health] spending distribution, financial burdens are very high.”

“You start to get hit pretty hard,” said John Holahan, an Urban Institute fellow, and co-author of the report.

Strong sign-up activity

The study comes as Obama administration officials have touted relatively strong sign-up activity on the federal insurance exchange during the third open-enrollment season. Officials also have stressed the availability of financial assistance to help many consumers purchase coverage, and the value of having insurance to protect oneself from potentially crippling medical bills.

Still, the analysis also suggests that efforts to boost Obamacare enrollment dramatically above current levels is being hampered by the sticker shock that some would-be customers feel when they look at how much they would have to actually pay in plan premiums and deductibles relative to their incomes.

To continue reading: Obamacare plans put big dent in customers’ wallets