The New York Times reported this weekend, even the words “affordable†and “care†have turned out to be untrue as well. The sharp rise in premiums has garnered the most headlines in the first three open-enrollment seasons of Obamacare, but equally if not more pernicious has been the increase in deductibles. As Eric Pianin explained for The Fiscal Times on Monday, deductibles have increased an average of 11 percent on Bronze level plans for 2016, intended to be the most affordable of all options, and now average over $5700. For Silver level, deductibles rose 6 percent and now average over $3100.
Consumers have to pay both the premium and then thousands of dollars for care out of their own pocket before insurance takes effect.
When the media focused on skyrocketing premiums (rightly so, considering the large serial increases for health insurance on the individual exchanges since the introduction of the Affordable Care Act) its advocates defended the system by pointing out that many on the exchanges qualified for subsidies to absorb the costs. For instance, Obama himself promised, “Most Americans will find an option that costs less than $75 a month,†and HHS Secretary Sylvia Burwell claimed that 80 percent of Americans would pay no more than $100 in premiums after the subsidies.
Those claims may be true, but those subsidies don’t just fall out of the trees; they come from higher taxes on providers and manufacturers, and eventually out of the pockets of consumers, as do all business taxes. However, that defense doesn’t work on deductibles, which insurance companies were forced to raise when the state and federal governments tried to squeeze premium increases for the exploding demand down to a dull roar.
(Excerpt) Read more at finance.yahoo.com ...
