Liberals pretend that, for people who lost their health care plans because of Obamacare, the Affordable Care Act will lower monthly premiums while offering the same or better coverage — and other people won’t even be affected! They promise a veritable gold standard for 21st-century health care coverage.
Their claim is all flash and no substance.
First, health care premiums are not lower across the board, as Obama promised they would be. They are lower only for certain subgroups, such as people who qualify for federal subsidies; people who live in states that have already jacked up premiums exorbitantly; and people with preexisting conditions who lead insurance companies to charge them more for the cost risk they pose.
For just about everyone else who lost his or her plan, premiums are heading north. In 2014 this will affect those on the individual market and those who work for small businesses. In 2015, when the employer mandate kicks in, it will affect many if not most who receive insurance through large employers.
Second, even for the minority of plan-losers who enjoy lower premiums next year, the government is offsetting this cost through huge annual deductibles. Many low-income people who can afford only the cheapest “Bronze” plans can’t budget the outrageous deductibles they must pay before they see any reimbursement. Many middle-income people who fall below the threshold for subsidies face a lose-lose tradeoff: buy a Bronze plan with monthly premiums similar to what they paid before but a huge deductible, or minimize their deductible by paying higher monthly premiums.
Lots of middle-income people who do meet the subsidy threshold will nonetheless find themselves paying more. Why? Because federal and state exchanges cover a narrower range of hospitals and doctors than many plans do now, and consumers who want to stick with their current arrangement will shell out more for out-of-network services previously considered in-network.
Third, even if Obamacare covers a few people at near-zero premiums and drastically reduced deductibles, this will help only a tiny sliver of the population, many fewer people than promised.
So a few people in New York and California may end up better under Obamacare. But liberals are pushing for generous health care entitlements to spread to an ever-growing swath of society, an arrangement that will eventually squeeze the middle class out of the health care market. And a nation without a stable middle class can’t fund a massive new entitlement for a swelling portion of society, which means even the poor won’t get help much longer.
So Obamacare doesn’t help people who can barely scrounge up enough to pay for a Bronze plan, and it doesn’t help people who have to upgrade to Silver for the same coverage.
It doesn’t help individual market subscribers or those who work for small businesses, and soon it won’t help those with large employers.
It doesn’t help the middle class, and soon it won’t help the poor.
In the long run, Obamacare’s cheap, flashy, hollow aluminum plans help no one.
