Obamacare: A Lose-Lose Situation
In 2016 American Workers Face A Choice: ‘Harsh’ Penalties Or ‘Obscene’ Premiums
OPTION ONE: The $695 ‘Harsh, Stiff Penalties’
THEN-SEN. BARACK OBAMA (D-IL): “…a mandate does not work unless you impose harsh, stiff penalties on those who don't purchase it.” (CNN’s “Newsroom,” 2/23/08)
- “…the Obama administration is being urged to highlight that cold fact…” (“Bigger Bite For Health Law Penalty On Uninsured,” AP, 10/19/15)
2016: “The math is harsh: The federal penalty for having no health insurance is set to jump to $695, and the Obama administration is being urged to highlight that cold fact… in 2016, the penalty for being uninsured will rise to the greater of either — $695 or 2.5 percent of taxable income — for someone who goes without coverage for a full 12 months.” (“Bigger Bite For Health Law Penalty On Uninsured,” AP, 10/19/15)
2015: “This year the comparable numbers are $325 or 2 percent of income.” (“Bigger Bite For Health Law Penalty On Uninsured,” AP, 10/19/15)
2014: “It started at $95 or 1 percent of income in 2014. The fact that it's up to $695 may take consumers by surprise.” (“Bigger Bite For Health Law Penalty On Uninsured,” AP, 10/19/15)
- “This year was the first time the IRS collected the penalties, deducting them from taxpayers' refunds for the 2014 tax year in most cases. Some 7.5 million households paid penalties totaling $1.5 billion, an average of $200 apiece, according to preliminary IRS data.” (“Bigger Bite For Health Law Penalty On Uninsured,” AP, 10/19/15)
- “For employees, forgoing coverage can mean facing tax penalties. Ms. Morris said she was surprised by the $95 fee she had to pay this year for being uninsured in 2014. ‘I had kind of heard about it, but I didn’t think it was going to kick in until later,’ she said.” (“Many Low-Income Workers Say ‘No’ to Health Insurance,” New York Times, 10/20/15)
OPTION TWO: A Plan With ‘Obscene’ Premiums
“Premiums are expected to go up next year by a bigger amount than this year. Surveys show that among the 10.5 million remaining uninsured who are eligible, many are young adults living on very tight budgets. They may not see the value in getting health insurance, even if it is now required by law and penalties for being uninsured are rising.” (“It's Getting Harder To Sign Up Uninsured,” AP, 10/15/15)
UTAH: ‘It’s obscene’ “Ana and Oswaldo Demoura got their letter last month: a notice from their health care provider that thousands will soon receive in the mail. ‘I thought that was a mistake. I think it’s obscene,’ said Oswaldo Demoura. Addressed to Mrs. Demoura, it outlines a new coverage plan from Arches Mutual Insurance, putting their monthly premium, with tax credits, at $416.59. The problem with that is they are currently paying $126.22. That means their insurance is going up about 300 percent. … ‘Nobody can afford that, absolutely,’ Oswaldo Demoura said.” (“Health Insurance Premiums Increase In Utah,” KTSU TV, 10/22/15)
- “…most of the six insurers in Utah’s federal exchange are seeing increases in their premiums ranging from about 16 percent to 45 percent.” (“Health Insurance Premiums Increase In Utah,” KTSU TV, 10/22/15)
IDAHO: “Larry Olmsted: I got my annual notice of changes to my health insurance plan for 2016. I opened it with great anticipation, since I had been guaranteed by President Obama that our family would save $2,500 per year. There must have been some misprints in the package of materials I received, because they said my monthly premium would increase by 8.4 percent, my maximum out-of pocket will increase by 100 percent, my hospital copay will increase by 77.1 percent, and prescription drugs will increase marginally. By my calculations, next year I will spend $2,704 more for insurance in 2016 than I did in 2015, if I don’t go to the hospital.” (Letter To The Editor, “Wasn’t Obamacare Supposed To Cut Costs?” Idaho Press-Tribune, 10/2/15)
- “In Idaho, insurance director Dean Cameron said that an average 23% increase by Blue Cross of Idaho Health Service Inc., was disappointing but “not unreasonable” and that he didn’t have the power to stop it.” (“Insurers Win Big Health-Rate Increases,” The Wall Street Journal, 8/27/15)
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SENATE REPUBLICAN COMMUNICATIONS CENTER
Related Issues: Obamacare, Health Care
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