The Obamacare mess leaves many people in an impossible situation. They want health insurance and can get it on the exchange (eventually), but they also want to get affordable policies with adequate coverage without becoming the victim of identity theft. This may sound like an unrealistic tradeoff, but it actually is the fact for many millions of people across America.
Let me use as an example one of those young uninsured folks that the media is always discussing. I know a recent college graduate who had coverage while in school on a policy sold to students of her university by Aetna. The yearly premium was about $2400 or $200 per month. The insurance included essentially all the services required by Obamacare. The insurance covered 90% of all medical costs and had an annual out of pocket maximum of $5000. After graduating from college in May, this student opened her own business. As a result, she needs to get her own insurance coverage. The policies on the exchange site which are available for this student cost roughly $380 per month, an increase of 90% from her previous policy. The Obamacare policy in question, however, is nowhere near as good as the prior one. It has a deductible of $3500 for all services compared to a $1000 deductible from Aetna on out-of-network expenses only. It covers a lower percentage of medical costs. Prescription drugs cost more. In short, the policy provides less but for nearly twice the cost. Now Obamacare also gives subsidies and this person qualifies to get one. Based upon her projected income, the premium will be reduced to a point where the increase over the prior year will "only" be 50%. Even though she wants a policy, she has yet to sign up. There are just too many stories about people's private information being taken from the exchange site. At the moment, she is leaning towards paying the fine and doing without insurance.
How is it possible that we have actually come to this?
Let me use as an example one of those young uninsured folks that the media is always discussing. I know a recent college graduate who had coverage while in school on a policy sold to students of her university by Aetna. The yearly premium was about $2400 or $200 per month. The insurance included essentially all the services required by Obamacare. The insurance covered 90% of all medical costs and had an annual out of pocket maximum of $5000. After graduating from college in May, this student opened her own business. As a result, she needs to get her own insurance coverage. The policies on the exchange site which are available for this student cost roughly $380 per month, an increase of 90% from her previous policy. The Obamacare policy in question, however, is nowhere near as good as the prior one. It has a deductible of $3500 for all services compared to a $1000 deductible from Aetna on out-of-network expenses only. It covers a lower percentage of medical costs. Prescription drugs cost more. In short, the policy provides less but for nearly twice the cost. Now Obamacare also gives subsidies and this person qualifies to get one. Based upon her projected income, the premium will be reduced to a point where the increase over the prior year will "only" be 50%. Even though she wants a policy, she has yet to sign up. There are just too many stories about people's private information being taken from the exchange site. At the moment, she is leaning towards paying the fine and doing without insurance.
How is it possible that we have actually come to this?
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