Mar 30, 2017

Obamacare’s $50,000 Premium

Post by Kevin Brinegar

Premiums on plans sold through Obamacare’s exchanges are skyrocketing this year by an average of 25 percent. That’s a huge number impacting millions of Americans, but what does it mean for the average couple? 

Bloomberg reporter Steven Dennis crunched some numbers via Kaiser’s Health Insurance Marketplace Calculator, and what he found might shock you.

The subsidies Obamacare recipients receive are what Obamacare supporters usually point to when confronted over Obamacare’s enormous premium spikes. This family that earns $80,000 a year receives a $43,000 handout just for health insurance. In other parts of the country, that subsidy equates to an entire family income. How could that ever be sustainable?

Making matters worse, if this family earns $82,000 a year instead of $80,000 their Obamacare subsidy goes to zero. They will be financially worse off until their income increases to $123,000 annually. That is a toxic incentive against work.

We did some number-crunching of our own. Even with that massive subsidy, the couple making $80,000 would still have a monthly premium of around $660. Moreover, they’d still be on the hook for their deductible, which is what patients must pay out of pocket before their insurance kicks in. This year, average deductibles for individual silver-level plans are $3,572.

For many Americans who have insurance through Obamacare – including some who receive generous subsidies – these high out-of-pocket costs are a major reason why coverage doesn’t equal care.

What these skyrocketing premiums in Alaska show is that Obamacare’s one size fits all national policy has not worked. Lawmakers must remove Washington from the health care equation and give states the power to solve their own unique problems.

Instead of continuing to federally subsidize unaffordable insurance, it’s time to fully repeal Obamacare and pass targeted solutions that bring down costs and give patients more control over their health care.