The Positive Outlook on Obamacare

Title of Article: "Obamacare Premium Rates Lower than Expected"
Date: September 25, 2013
Source: CNN
Author: Tami Luhby

The Positive Outlook on Obamacare


According to new data, Obamacare will cost less than
predicted. The release of new information provided a look into rates for
consumers buying individual insurance on the 36n federally run exchanges. The
national average will be 328 dollars a month, before subsidies, for this new
premium program; this is sixteen percent less than projected by the
Congressional Budget Office. With less money spent on governmental health care,
the government and people who will have Obamacare are free to spend that money
however they wish. 
 
The subsidies will offer maximum caps for low-and
moderate-income Americans in the benchmark plans. However, those who choose not
to enroll in Obamacare are not guaranteed a fixed price for healthcare, as the
prices range varies based on one’s age, income, and state. “For instance, a
27-year-old-living in Dallas making $25,000 could pay as little at $74 a month
for the cheapest “bronze” plan after subsidies, according to the Department of
the Health and Human Services.” While a sixty-year-old woman in Wyoming who
makes more than 46,000 dollars a year could pay as much at 758 dollars for an
extremely similar plan. Nevertheless, the majority of people uninsured today
will be able to find a policy for one-hundred dollars or less a month with
account subsidies and Medicaid eligibility taken into account. 
 
Starting October 1st, consumers will be able to
start enrolling with coverage that begins in January. Starting in 2014, “nearly
everyone” must have insurance, either through jobs, government programs, or the
individual market, otherwise, they will face a penalty. These newly released
rates do not apply to those who receive insurance through their employer. 
 
Most people who are expected to sign up for coverage in the
exchange have incomes up to 400 percent of poverty and will be eligible for federal
subsidies. The lower your income, the more expensive the benchmark plan in your
state, the larger your subsidy. Anyone who earns fewer than 45,960 dollars
would be responsible for the entire tab on the Obamacare health plan of his/her
choice. Premiums are higher in states with only a handful of insurers, says
Gary Claxton, vice president at the Kaiser Family Foundation. The three most
expensive states are Wyoming, Alaska, and Mississippi, where residents will
only have a choice of two insurers. With more opportunities for insurance,
leads to different deals and prices because that specific economy is allowing
choice. 

This program is extremely important because it affects most of the people in
the United States. The fact that health insurance will be determined based
partly on where people live may lead to an increase in population in places
where the Obamacare is more readily available and cheap and a decline in places
where Obamacare is more expensive.