Another Problem With The Health Care Law: You Can't Choose To Have Less To Make It Cheaper
Louise Radnofsky writes in the WSJ:
For a 40-year-old single nonsmoker--in the middle of the age range eligible for exchanges--a "bronze" plan covering about 60% of medical costs will be available for about $200 a month in most places, the proposals show.Though less generous than "silver" and "gold" plans on the exchanges, a bronze plan would still include fuller benefits than many policies available on the individual market today.
The challenge for the law is that healthy 40-year-olds can typically get coverage for less today, especially if they are willing to accept fewer benefits or take on more costs themselves. Supporters of the law say tighter regulation on insurance practices gives consumers more protection and is worth the extra cost, but they have to persuade people who don't have an immediate need for health care of that. If only sick people buy into the new insurance pools, prices could shoot up.
Bob Laszewski, a Virginia health-care consultant and former insurance executive, said the new offerings were likely to anger people who had preferred lower-cost products that were no longer available.
"If a person in 2013 has a choice of buying a Chevrolet or a Cadillac health plan, and in 2014, they can only buy a Cadillac...are they going to be upset? I think the answer is, yes," he said.
Virginia is one of the eight states examined by the Journal and offers a fairly typical picture.
In Richmond, a 40-year-old male nonsmoker logging on to the eHealthInsurance comparison-shopping website today would see a plan that costs $63 a month from Anthem, a unit of WellPoint Inc. WLP -0.23% That plan has a $5,000 deductible and covers half of medical costs.
By comparison, the least-expensive plan on the exchange for a 40-year-old nonsmoker in Richmond, also from Anthem, will likely cost $193 a month, according to filings submitted by carriers.
The law is likely to offer a benefit to those who have difficulty getting insurance now or are pushed out of the market because they have had illnesses.
The rest of us -- who've been paying into the system for years -- get screwed.
Umm - there's a fallacy here.
Under this plan, you qualify for care by paying (ignore for a bit that it was sold as "free").
That doesn't mean you actually GET care.
You are sick? The clerk is not sick. Fill out this form. Is the form filled out? Ok. Wait here. The system is working perfectly, ma'am. You are not being denied care, it just isn't available right now. Sit down and wait. You will be served when we can get to you.
The Federally-approved doctor has been selected for her value as a diverse member of the world population, so that you will enjoy the interview experience exchanging ideas between cultures!
Radwaste at July 2, 2013 2:29 AM
"If a person in 2013 has a choice of buying a Chevrolet or a Cadillac health plan, and in 2014, they can only buy a Cadillac...are they going to be upset?"
Actually, you can only buy a Chevrolet... but you have to pay for a Cadillac.
Cousin Dave at July 2, 2013 6:16 AM
Amy Alkon
https://www.advicegoddess.com/archives/2013/07/another-problem.html#comment-3781875">comment from Cousin DaveActually, you can only buy a Chevrolet... but you have to pay for a Cadillac.
Great point, and exactly right, Cousin Dave!
Amy Alkon
at July 2, 2013 6:52 AM
Buying healthcare from an insurance company is socialized risk, and some of the rules are changing, but here's one thing that won't change: the insurance company will turn profits or go out of business.
Don't buy healthcare from companies that socialize risk. Buy healthcare from doctors and hospitals. Pay for your own healthcare directly.
Andre Friedmann at July 2, 2013 6:59 AM
The fatal mistake a parent makes, is taking the kid to a restaurant, and just handing them a menu.
"what do you want?"
'shrimp and ice cream!'
so, you just give them 2 options "d'ya want pizza, or macaroni and cheese?"
'oooh, mac and cheese!'
You gave them an illusion of choice, and they are happy.
This works when they are 5.
The entire idea of healthcare is predicated on giving you an unlimited choice of one thing, because there is NO WAY you can make such an important decision for yourself.
You betters [who exempt themselves from the program] just KNOW that you are only 5.
The idea of 'choice' isn't part of this.
SwissArmyD at July 2, 2013 3:05 PM
I'd love to. But if you are a single person you are fucked. I'd like to load $20K+ or more into some medical account pre-tax over the years. But the IRS has cut 98% of those accounts back to what you can spend in a year.
I know I probably need new glasses. That is about $300. But if the exam at $80 says I don't, I have to find $220 of medical expenses by year end. But if don't use the MSA and pay cash, to deduct it off the income tax it has to be part of my medical expenses that is over 7.5% of my income to deduct it. So someone who makes $100K he has to spend $7500 in medical to deduct it.
No matter which way -- most people are fucked.
Jim P. at July 2, 2013 10:50 PM
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