Worse off with Obamacare than no insurance.


If one listens to progressive/statist/altruists one leaves with the impression that if you must “pay” for a medical encounter from you own wallet it is unconscionable. Why is that, ask you? Because, answer I, it is possible that my wallet is thicker than your wallet.

The Affordable Care Act was pushed down our throats based on the principle that we had a moral obligation to expand medical coverage to the uninsured. Add this to the list of “do-gooder” ideas that isn’t working out as it was draw up in Washington.

There were two principle reasons that progressive/statist/altruists believed that millions of Americans did not carry health insurance. Some of the uninsured Americans could not afford health coverage because their incomes were insufficient. Others had medical conditions that made insurance too expensive or simply unobtainable.

[Source: Obamacare Coverage Is Worse than Nothing for Most People, by Devon Herrick]

So, did Obamacare solve these problems or make them worse? Despite having Obamacare coverage, many Americans still can rack up huge medical bills. The only coverage many people can now afford are plans with both an excessively high premium and excessively high deductibles, as well.

[From the Herrick article] Earlier this year, a report from the University of Pennsylvania found all but the most heavily subsidized Obamacare enrollees would be better off financially if they skipped coverage and pay for their own medical care out of pocket. The people whose incomes fall between 1.38 and 1.75 times the poverty level will spend about three times the amount on premiums for a Silver plan as they would have out of pocket had they remained uninsured. For those earning more than 250 percent of poverty, most will be worse off financially compared to having remained uninsured… Except for the unlucky few who experience catastrophic health complaints, the vast majority of Obamacare enrollees would be better off uninsured.

The mandate of Obamacare to make care cheaper for those with preexisting conditions has had the effect of making it worse, or at least, more expensive for everyone else. Paradoxically, they are even worse off than being uninsured. This is why “altruism” (I am my brother’s  keeper) sounds nice, but is no way to run a government.

Deductibles of $5000 or more are common. This means that most enrollees pay their annual expenses from their deductible, never calling on their “insurance.”

[From the Herrick article] Obamacare is becoming little more than a sickness tax on people who don’t expect to reach their deductibles. It’s an unofficial tax on most enrollees to reward insurers and offset some of the cost of insuring the few people with major health conditions. That is not an efficient way to subsidize medical care… The Rand Health Insurance Experiment of the 1970s found when people were exposed to significant cost-sharing, they consumed about 30 percent fewer medical services on average. More recently, research by the Kaiser Family Foundation found the uninsured consume only about half the care of those with coverage ($2,443 vs. $4, 876).

The plan of Obamacare was to “insure” 30 million uninsured Americans. It has nowhere near met its goal. However, it has made everything worse for the remaining 286,000,000 Americans.

Roy Filly

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About Roy Filly

Please read my first blog in which I describe myself and my goals.
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5 Responses to Worse off with Obamacare than no insurance.

  1. joe says:

    made it worse? OMG. Roy, you (have no) idea….of course you do. My premiums are $24,000 a year. My son got a nasty note from Harvard Pilgrim that if we didn’t send them his SS# they’d fine him. My wife changed her job, and there was a month or two where we weren’t sure how things were going to shake out, so she had insurance with her old job thru March (plan A), I picked up insurance through my group as of Jan 1 to make sure we had coverage (plan B) so we were double covered and double paying, then she got her insurance as of March at her new job (plan C). We couldn’t figure out which plan would cost us less and have equal coverages. not even our insurance agents can do that. So when we finalized on her Plan (c) I tried to cancel my Plan (B). My monthly premium for plan B was $2214. When I tried to cancel it my insurance co notified us (my group) that that would only result in a savings of $1800. IN other words, even if we canceled the plan, the premium for the group would only go down $1800, not $2200. So the ins. co was basically punishing us to the tune of $5000 a year for my canceling. Thank you Marxist in chief, Harry, Nancy, RINO’s, etc. And, as you say, i have a $5000 deductible and max $10,000 out of pocket.

  2. trailbee says:

    Until this moment, I hadn’t even thought of what would happen if one or several people opted out of our plan. I know they won’t, at least not this plan. But, what would happen if others chose Joe’s path? Can you see the disaster? A couple of years ago Mauldin Economics wrote about Obamacare, just before its inception. I got the shakes. I am so grateful we have what we have. Yes, we’ve already had an increase, and Express Scripts has already raised its ugly head in my wallet, but so far, I am grateful for our membership and our current plan.

  3. Pingback: Time to throw dirt on Obamacare. | The Rugged Individualist

  4. Pingback: The Democrat Party still wants Obamacare. | The Rugged Individualist

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