CBO Report Exposes Massive Cost Increases In Obama Care For Middle Class And Working Poor

The following was released by the Congression Budget Office. You can read the CBO release here: http://cboblog.cbo.gov/?p=363 , http://www.cbo.gov/ftpdocs/106xx/doc10618/09-22-Analysis_of_Premiums.pdf 1). The Government will offer diferent plans at different prices- better coverge will cost you more ….. 2). Obama Care will include deductibles and co-payments – they won’t be called copays or deductibles – they are calling that “cost sharing payments” – how cute – “cost sharing” – we all like to share don’t we ….. FROM THE DIRECTOR OF THE CBO – The analysis focuses on enrollees who purchase one of the low-cost “silver” plans offered in the exchanges because federal subsidies would be tied to the premiums of those plans. Such a plan would have an actuarial value of 70 percent, which represents the average share of costs for covered benefits that would be paid by the plan. Under the proposal, premiums would vary by geographic area to reflect differences in average spending for health care and would also vary by age, but the table shows the approximate national average of premiums—about $4,700 for single policies and about $14,400 for family policies in 2016. Enrollees could purchase more extensive coverage or a more expensive plan for an additional premium. (NOTE: These are “average” costs based on geographical region – certain areas will pay significantly more) Under the proposal, the maximum share of income that enrollees would have to pay for a low-cost “silver” plan in 2013 would range from 3 percent for those with income equal to the FPL to 13 percent for those with income equal to 300 percent of the FPL. Those with income between 300 percent and 400 percent of the FPL would have the same 13 percent cap. After 2013, those income caps would all be indexed so that the share of the premiums that enrollees paid (in each income band) would be maintained over time. As a result, the income caps would gradually become higher over time; they are estimated to range from 3.2 percent to 13.9 percent in 2016. A family of four, for example, would have to pay premiums of about $1,400 if its income was $30,000 (about 125 percent of the projected FPL in 2016), or $8,300 if its income was $66,000 (or 275 percent of the FPL). Plus deductibles and co-pays. $8,300 – for the “low cost plan”. CBO also estimated the sum of enrollee premiums and average cost-sharing amounts (co-pays & deductibles) for the middle of each income band and the average share of income that such spending would represent. For single enrollees, premiums plus cost-sharing payments would range from about $1,200 for those with income of about $14,700 (8.1% for those with an income of $14,700 – th epoorest in the nation) , to $6,300 for those with income above $34,000 (or 18.5% of that income). For families, premiums plus cost-sharing payments (co-pays and deductibles) would range from about $2,900 for those with income of $30,000, to nearly $20,000 for those with income above $96,000 (or 21% of a family income of 96,000) – for the low cost “silver” plan. A family of 4 with an income of $96,000 is not rich – how can they possible afford a $20,000 premium – for the “low cost” silver plan. http://cboblog.cbo.gov/?p=363 , http://www.cbo.gov/ftpdocs/106xx/doc10618/09-22-Analysis_of_Premiums.pdf

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