Tag Archives: Out of pocket costs

Obamacare trade-off: low premium, high deductible – Yahoo News

I’m not sure how to tell them, this tradeoff has always exists. Obamacare trade-off: low premium, high deductible – Yahoo News. Perhaps common sense is too much to ask for from a msm reporter.

You might be pleased with the low monthly premium for one of the new health insurance plans under President Barack Obama’s overhaul, but the added expense of copayments and deductibles could burn a hole in your wallet.

Also, you might NOT be pleased with monthly premiums that aren’t quite so low!

Keep in mind that Silver plans have special features to assist with out of pocket expenses if your income is between 133% and 200% of the Federal Poverty Level. You can read more about this feature called Cost Sharing Reduction (CSR) over at HealthPocket. I will add a post and additional information on the website in the near future.

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Now They Tell Us

Now They Tell Us: ObamaCare Has Huge, Hidden, Premium Costs – Investors.com.

So just how could ObamaCare pile on costly new benefit mandates, require that insurers take everyone, not charge the sick more than the healthy, and keep rates low? Did Democrats manage to find a loophole in the law of supply and demand?

Well, no. Just because ObamaCare premiums didn’t come in as high as some expected doesn’t mean they’re not pricey, particularly for young people.

In fact, the cheapest ObamaCare Bronze plan available to 25-year-olds in several states will cost more than the median-priced plan in those states today, even after taking account of the subsidies.

In Virginia, a low-income 25-year-old will pay $127 a month for the cheapest plan after subsidies, according to the Kaiser Family Foundation. But the Government Accountability Office found that the mid-priced plan in Virginia today costs just $112 a month.

And as the New York Times discovered, even these ObamaCare prices are misleading, since the only way insurance companies could keep them low was by severely restricting their networks of doctors and hospitals.

Silly me, I thought my clients could keep their doctors. Well, not really but my clients thought they could keep their doctors. In fact, they STILL think they can keep their doctors. Those who investigate Obamacare will discover differently in the upcoming months.

How do you compensate for the reduced network? Supplemental policies. Supplemental accident and critical illness policies will help to cover additional costs if you find yourself seeking out of network medical care. Suddently it will be much easier to be “out of network”.

As IBD concludes….

The result is that any patient who actually needs health care could end up having to choose between forgoing treatments or paying huge costs to go out of the network. Either way, they’ll get far less than promised. As the Times discovers, “having an insurance card does not guarantee access to specialists or other providers.”

Once again, think supplemental policies.

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Latest Obamacare Carve Out a Boon to Big Insurance

Latest Obamacare Carve Out a Boon to Big Insurance | Fox News.

One of the key selling points in Obama’s populist push was that the bill would set annual caps on out-of-pocket expenses demanded by insurers. Starting in 2014, the law sets the limit at $6,350 for individual policies and $12,700 for family plans.

But through a regulatory re-write slipped into the rule book in February, but first publicized in today’s New York Times, the administration has given big insurance companies a one-year delay on the caps.

The reason cited is a technical problem in getting new and existing computer systems in synch. But the move will also help prevent more rate shocks. Insurance premiums are set to rise precipitously next year as insurers are required to begin accepting patients with pre-existing conditions.

It’s my understanding that this only affects group plans. As the dust clears on this latest Obamacare delay it will become clearer.

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Yet Another White House Obamacare Delay: Out-Of-Pocket Caps Waived Until 2015

Yet Another White House Obamacare Delay: Out-Of-Pocket Caps Waived Until 2015 – Forbes.

Notes Pear, “Under the [one-year delay], many group health plans will be able to maintain separate out-of-pocket limits for benefits in 2014. As a result, a consumer may be required to pay $6,350 for doctors’ services and hospital care, and an additional $6,350 for prescription drugs under a plan administered by a pharmacy benefit manager.”\

Perhaps affected individuals that have high medication costs should drop out of their group plans and purchase an individual plan on the exchange?

This article is also a great summary of other “amateur hour” implementation issues of Obamacare.

First, there was the delay of Obamacare’s Medicare cuts until after the election. Then there was the delay of the law’s employer mandate. Then there was the announcement, buried in the Federal Register, that the administration would delay enforcement of a number of key eligibility requirements for the law’s health insurance subsidies, relying on the “honor system” instead. Now comes word that another costly provision of the health law—its caps on out-of-pocket insurance costs—will be delayed for one more year.

Another nugget on subsidies….

The progressive solution to expensive problems? More subsidies. But subsidies don’t reduce the underlying cost of care. They only excuse the high prices that manufacturers and service providers already charge.

 

You can’t make this stuff up.

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Obamacare amateur hour: Consumer cost cap delayed

A Limit on Consumer Costs Is Delayed in Health Care Law – NYTimes.com.

Under the policy, many group health plans will be able to maintain separate out-of-pocket limits for benefits in 2014. As a result, a consumer may be required to pay $6,350 for doctors’ services and hospital care, and an additional $6,350 for prescription drugs under a plan administered by a pharmacy benefit manager.

Some consumers may have to pay even more, as some group health plans will not be required to impose any limit on a patient’s out-of-pocket costs for drugs next year. If a drug plan does not currently have a limit on out-of-pocket costs, it will not have to impose one for 2014, federal officials said Monday. (emphasis added)

There really is no excuse for this. Remind me again, how long have they know this was coming?

Prediction Chaos.

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