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  • Deductibles on Obamacare Plans Could Make ACA Unaffordable

    Posted by Shannon Early on December 12, 2013

    According to Speaker of the House John Boehner, the Affordable Care Act is anything but affordable. He says his new Obamacare health insurance plan will feature doubled premiums and tripled copays and deductibles. He is less than happy about the increases.

    The problem Boehner is experiencing could become the norm if a report from Sector & Sovereign Research is any indication. The organization released their report in early December that analyzed the various individual health insurance plans that will be available in 2014. The results indicated that if people want the same type of coverage in 2014 that they had in 2013, they will have to pay “substantially more.”

    Deductibles are the amount a subscriber has to pay before the insurer starts to pay its portion of covered medical bills. Typically, the subscriber must meet the deductible within a year. It resets every year thereafter. If deductibles are high, people will have to pay higher out of pocket costs for their health insurance coverage.

    Older people and younger people are going to see the highest increases in deductibles. For instance, a 21-year-old individual will pay 81 percent more for a comparable plan in 2014. A 64-year-old will pay 64 percent more for a comparable plan in 2014. While middle-aged individuals will see less of an increase, they will still pay an average of 29 percent more than they did in 2013.

    Federal subsidies are available for people whose incomes fall below 200 percent of the federal poverty level, which may make premiums more affordable for these people. However, if a person makes more than the maximum allowed for subsidies, he or she might be better off purchasing an insurance plan off the exchange, since the deductibles on the exchange are so high. The report from Sector & Sovereign concluded the high deductibles were the result of individual insurance policies offering less value in 2014 than they did in 2013.

    Unfortunately, this means many individuals are more likely to go without insurance in the coming year. Dr. Ezekiel Emanuel, a health adviser to President Obama, said on Fox News over the weekend that if people want to keep their doctors under Obamacare, they may have to pay more to get access to a plan that includes their physicians in network.

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