High Deductibles Attached To Obamacare Insurance Plans Have Rendered Them Unaffordable For Many And Undermined The Argument That Health Coverage Equals Access To Care
TOP TAKEAWAYS
- Proponents of Obamacare boasted the law would lower healthcare costs and provide affordable coverage to millions of Americans, but as one Obamacare enrollee stated, "basically I was paying for insurance I could not afford to use."
- A closer inspection reveals Obamacare coverage often comes with deductibles so high they render the coverage unaffordable and essentially useless for many Americans.
- In 2017, the average deductible for the lowest-cost bronze plan for individual coverage on the Obamacare exchange marketplace is over $6,000-an all-time high.
- For some Americans, coverage under Obamacare means having to pay increasingly high insurance premiums for healthcare they can't actually use because of expensive deductibles that some plans may require to access their healthcare.
OBAMACARE WAS SOLD TO THE AMERICAN PEOPLE AS A SILVER BULLET THAT WOULD LOWER HEALTHCARE COSTS AND INCREASE COVERAGE
President Obama And Minority Leader Pelosi Repeatedly Promised Obamacare Would Lower The Cost Of Insurance For Americans
In 2009, President Obama Promised That Obamacare Would "Save A Typical Family An Average Of $2,500." PRESIDENT BARACK OBAMA: "Their efforts will help us take the next and most important step, comprehensive health care reform, so that we can do what I pledged to do as a candidate and save a typical family an average of $2,500 on their health care costs in the coming years." (President Barack Obama, Remarks On Health Care Reform , Washington, D.C., 5/11/09)
President Obama Stated Obamacare Would Allow Americans To "Offer Your Family The Security Of Health Care" For "The Cost Of Your Cable Bill" And "Less" Than The Price Of A Cellphone Bill. OBAMA: "Knowing you can offer your family the security of health care -- that's priceless. Now you can do it for the cost of your cable bill. Probably less than your cellphone bill. Think about that. Good health insurance for the price of your cellphone bill, or less." (President Barack Obama, Remarks By The President On The Affordable Care Act , Largo, MD, 9/26/13)
In 2009, President Obama Stated "We Agree On Reforms That Will Finally Reduce The Costs Of Health Care" And "Whatever Ideas Exist In Terms Of Bending The Cost Curve And Starting To Reduce Costs For Families, Businesses, And Government, Those Elements Are In [Obamacare]." OBAMA: "We agree on reforms that will finally reduce the costs of health care. Families will save on their premiums; businesses that will see their costs rise if we do nothing will save money now and in the future…You talk to every health care economist out there and they will tell you that whatever ideas are - whatever ideas exist in terms of bending the cost curve and starting to reduce costs for families, businesses, and government, those elements are in this bill." (President Barack Obama, Remarks By The President After Meeting With Senate Democrats , Washington, D.C., 12/15/09)
In 2010, Rep. Nancy Pelosi (D-CA) Promised The Affordable Care Act Would Lower Healthcare Costs. "This year, we passed the Affordable Care Act to lower costs, improve and strengthen Medicare and give seniors more control over their health care, and we will continue to work to ensure that seniors get to keep their doctor." (Press Release, "Pelosi: Health Reform Will Lower Costs, Strengthen Medicare, Give Seniors More Control Over Their Health Care," Rep. Nancy Pelosi , 6/8/10)
In 2013, President Obama Pledged That Healthcare.gov Would Be A Place "Where You Can Compare And Purchase Affordable Health Insurance Plans, Side-By-Side" Like Buying A TV On Amazon. OBAMA: "Now, this is real simple. It's a website where you can compare and purchase affordable health insurance plans, side-by-side, the same way you shop for a plane ticket on Kayak -- same way you shop for a TV on Amazon." (President Barack Obama, Remarks By The President On The Affordable Care Act , Largo, MD, 9/26/13)
BUT IN FACT, EVEN AFTER PAYING INSURANCE PREMIUMS, SKY-HIGH DEDUCTIBLES HAVE MEANT SOME CAN'T AFFORD TO ACCESS HEALTHCARE
Obamacare Plans On The Exchange Have Left Many Americans With Four Figure Deductibles
"Sky-High Deductibles" Attached To Obamacare Plans Have Left Many Consumers "As Vulnerable As They Were Before They Had Coverage." "But for many consumers, the sticker shock is coming not on the front end, when they purchase the plans, but on the back end when they get sick: sky-high deductibles that are leaving some newly insured feeling nearly as vulnerable as they were before they had coverage." (Robert Pear, "Many Say High Deductibles Make Their Health Law Insurance All But Useless," The New York Times , 11/14/15)
In Many States, More Than Half Of The Plans Offered For Sale Through Healthcare.gov Have A Deductible Of $3,000 Or More. "In many states, more than half the plans offered for sale through HealthCare.gov, the federal online marketplace, have a deductible of $3,000 or more, a New York Times review has found." (Robert Pear, "Many Say High Deductibles Make Their Health Law Insurance All But Useless," The New York Times , 11/14/15)
- The Average Deductible For Individual Coverage Under Employer Plans Is $1,320. "Still, the average annual deductible in employer plans, $1,320 for individual coverage according to the Kaiser Family Foundation, is considerably less than the deductibles in many marketplace plans." (Robert Pear, "Many Say High Deductibles Make Their Health Law Insurance All But Useless," The New York Times , 11/14/15)
- The Internal Revenue Service Defines A "High-Deductible Health Plan" As A Plan With A Deductible Of At Least $1,300 For An Individual Or $2,600 For A Family. "The Internal Revenue Service defines a high-deductible health plan as one with an annual deductible of at least $1,300 for individual coverage or $2,600 for family coverage." (Robert Pear, "Many Say High Deductibles Make Their Health Law Insurance All But Useless," The New York Times , 11/14/15)
The Deductibles Of Obamacare Plans In 2017 Are Higher Than Ever Before
Deductibles For Bronze And Silver Plans Are "Considerably Beyond What The Average Family Has Saved For Medical Bills." "'Deductibles among bronze and silver plans, the plans most likely to be purchased by people without subsidies, are still considerably beyond what the average family has saved for medical bills." (Dan Mangan, "Obamacare Deductibles Are On The Rise For 2017, Along With Monthly Premiums," CNBC , 10/26/16)
Market Conditions On The Obamacare Exchanges Are "Getting Considerably Worse…The Percentage Increase For Each Category Of Obamacare Nationwide Is In The Double-Digits." "'With respect to 2017, it is immediately evident that the market conditions facing the unsubsidized are getting considerably worse,' HealthPocket's report said. 'The percentage increase for each category of Obamacare nationwide is in the double-digits.'" (Dan Mangan, "Obamacare Deductibles Are On The Rise For 2017, Along With Monthly Premiums," CNBC , 10/26/16)
Bronze Plans
For Plan Year 2017, The Average Deductible For A Bronze Plan For An Individual Is $6,092, An Increase Of Six Percent From 2016 And An All Time-High. "The average deductible for 2017 bronze plans marks the first time this average has crossed the $6,000 threshold. Compared to 2016's average of $5,731, the 2017 average bronze plan deductible for individuals is 6% higher ($6,092)." (Kev Coleman, "Aging Consumers Without Subsidies Hit Hardest By 2017 Obamacare Premium And Deductible Spikes," HealthPocket , 10/26/16)
For Plan Year 2017, The Average Deductible For A Bronze Plan For A Family Is Over $12,000. "For families enrolled in bronze plans, the average deductible is over $12,000 in 2017." (Kev Coleman, "Aging Consumers Without Subsidies Hit Hardest By 2017 Obamacare Premium And Deductible Spikes," HealthPocket , 10/26/16)
Silver Plans
For Plan Year 2017, The Average Deductible For An Individual With The Silver Plan Is $3,572, An Increase Of Nearly Fifteen Percent From 2016. "The average 2017 deductible for silver plans experienced more than double the rate of year-over-year cost increase as compared to the increase observed for bronze plans. The 2017 average deductible for individuals ($3,572) is approximately 15% more expensive than 2016's average of $3,117." (Kev Coleman, "Aging Consumers Without Subsidies Hit Hardest By 2017 Obamacare Premium And Deductible Spikes," HealthPocket , 10/26/16)
For Plan Year 2017, The Average Deductible For A Family With A Silver Plan Is $7,474, An Increase Of Fifteen Percent From 2016. "Likewise, the average family deductible is up to $7,474 in 2017 as compared to $6,480 in 2016." (Kev Coleman, "Aging Consumers Without Subsidies Hit Hardest By 2017 Obamacare Premium And Deductible Spikes," HealthPocket , 10/26/16)
Obamacare's High Deductibles Are Causing Many Americans To Feel As If They Are, In Reality Uninsured, And Had Adverse And Unhealthy Consequences
High Deductibles Are Causing Many Americans To Feel As If They Are, In Reality, Uninsured. "This is crazy, she wanted to scream. She has insurance, but it comes with a $6,000 family deductible - $2,000 for each of them - that she must pay before her policy typically pays a dime. Last year, she was uninsured. This year feels exactly the same. Walla is one of the millions caught in the reshuffling of the who-pays-what calculation within the U.S. insurance industry, especially in employer-sponsored group plans used by the vast majority of Americans." (Jenny Deam, "A Shift In Coverage Has Even The Insured Skipping Medical Care," Houston Chronicle , 10/1/16)
- One Obamacare Consumer Stated: "I Cannot Get Anything With This Insurance. Nothing." "Now she visits Whitehall Family Health Center seeking financial - not medical - help. An insurance counselor there helped Torres apply for a government subsidy, lowering her $6,000 deductible to $800. But she says she was better off before having to buy insurance. 'I cannot get anything with this insurance. Nothing,' said Torres, who avoids seeking treatment for her thyroid condition and high blood pressure because of cost. 'I just pay my monthly payments, try to take care of myself, go to work, and hope something serious doesn't happen to me.'" (Tracy Jan, "Critics Say High Deductibles Make Insurance Unaffordable," Boston Globe , 11/16/15)
- Another Obamacare Consumer: My Obamacare Deductible Is "So High That I Have To Pay For Everything All Year - Visits With A Gynecologist, A Dermatologist, All Blood Work, All Tests. It's Really Just A Catastrophic Policy." "Josie Gibb of Albuquerque pays about $400 a month in premiums, after subsidies, for a silver-level insurance plan with a deductible of $6,000. 'The deductible,' she said, 'is so high that I have to pay for everything all year - visits with a gynecologist, a dermatologist, all blood work, all tests. It's really just a catastrophic policy.'" (Robert Pear, "Many Say High Deductibles Make Their Health Law Insurance All But Useless," The New York Times , 11/14/15)
Some Consumers Have Considered Forgoing Insurance And Paying The Individual Mandate Tax Penalty In Lieu Of Obtaining Coverage On The Marketplace Because The Obamacare Deductibles Are Too Expensive. "'We're in the process of looking at going without insurance,' she said, calculating that the family will be better off financially just paying the $2,000 tax penalty for not abiding by the law's mandate. 'What am I even paying these insurance people for? Why should we reenroll?'" (Tracy Jan, "Critics Say High Deductibles Make Insurance Unaffordable," Boston Globe , 11/16/15)
Other Consumers Are Dropping Their Obamacare Plans They Already Bought Because They Are Discovering They Cannot Afford The Deductible. "'We could not afford the deductible,' said Kevin Fanning, 59, who lives in North Texas, near Wichita Falls. 'Basically I was paying for insurance I could not afford to use.' He dropped his policy." (Robert Pear, "Many Say High Deductibles Make Their Health Law Insurance All But Useless," The New York Times , 11/14/15)
- "Basically I Was Paying For Insurance I Could Not Afford To Use." (Robert Pear, "Many Say High Deductibles Make Their Health Law Insurance All But Useless," The New York Times , 11/14/15)
Those With Moderate Incomes Ineligible For Obamacare Subsidies Are Purchasing High-Deductible Plans As A Way To Make Monthly Premiums Manageable And As A Result End Up Putting Off Care As Though They Were Uninsured. "But those with more moderate incomes receive no help. Mandated by the law to buy coverage, they most often opt for high-deductible plans as a way to make their monthly premium payments more manageable. And they end up making medical decisions much like they did when they were uninsured, advocates say - by putting off care." (Tracy Jan, "Critics Say High Deductibles Make Insurance Unaffordable," Boston Globe , 11/16/15)
- A Survey Showed That One In Two Texans Avoided Medical Care Due To High Deductibles. "It gives voice to a survey his company commissioned in July asking 500 Texans about their health care habits. Nearly 1 in 3 with insurance said they had delayed or skipped a medical treatment or doctor visit in the past two years. Of those with high-deductible plans, the number neared 1 in 2. 'My reaction was, wow, we're in a lot of trouble in this country,' he said. His study also found that more than a third of people, both with and without insurance, admitted significant financial problems because of medical bills. That rose to 42 percent among those with high-deductible plans." (Jenny Deam, "A Shift In Coverage Has Even The Insured Skipping Medical Care," Houston Chronicle , 10/1/16)
- An Obamacare Consumer In New York Has Stated She Is Putting Off Needed Visits To A Retina Specialist And Risking A Detached Retina Because "While My Premiums Are Affordable, The Out-Of-Pocket Expenses Required To Meet The Deductible Are Not." "Karin Rosner, a 45-year-old commercial freelance writer who lives in the Bronx, pays about $300 a month, after a subsidy, for a silver insurance plan with a $1,750 deductible and a limit of $4,000 a year on out-of-pocket expenses. She is extremely nearsighted and has an eye condition that puts her at risk for a detached retina, but has put off visits to a retina specialist because, she said, she would have to pay the entire cost out of pocket. 'While my premiums are affordable, the out-of-pocket expenses required to meet the deductible are not," said Ms. Rosner, who makes about $30,000 a year.'" (Robert Pear, "Many Say High Deductibles Make Their Health Law Insurance All But Useless," The New York Times , 11/14/15)
In At Least One Case, One Consumer With Obamacare Coverage Left The Country To Seek Cheaper Care Because The Deductible Was Too High To Consult A Neurologist. "Amete Kahsay, 53, works as a temporary warehouse packer in Columbus. The Affordable Care Act marketplace is her only option for health insurance. She and her husband, an airport shuttle driver, pay $275 a month for a 'bronze' plan with a $13,200 deductible. Shortly after they signed up for insurance last year, her husband rushed her to the emergency room when she experienced dizziness. The visit, which included a CT scan of her brain, cost $1,700. She paid the charge from her savings, then returned to her native Ethiopia, where care is cheaper, to consult a neurologist and seek follow-up care." (Tracy Jan, "Critics Say High Deductibles Make Insurance Unaffordable," Boston Globe , 11/16/15)
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