May 1, 2015 by Tony Novak
This is an excerpt from Senator Barrasso’s address to Congress yesterday:
“The insurance plans offered in the health care exchanges are so expensive, that they are a terrible deal for most Americans.
That’s why the president had to give out subsidies to help hide the costs.
The Congressional Budget Office says that Washington will spend $850 billion on those subsidies over the next decade. That is a fact.
According to a new study by the health research company Avalere, Obamacare plans are extremely unpopular among people who don’t get the huge subsidies to buy the plans.
Only two percent of the people who don’t qualify for subsidies have actually bought insurance through the exchanges.
That’s a fact – and it’s an alarming sign of how high the cost of Obamacare really is. It’s not just the premiums that are sky high.
This year, the average deductible, the deductible for an Obamacare silver plan is almost $3,000 for a single person – and more than $6,000 for a family.”
Regarding the premium subsidy:
“According to a new study by the tax preparers at H&R Block, almost two-thirds of people enrolled in Obamacare exchanges had to pay back some of their subsidy with their taxes this month.
The average amount people owed the IRS: $729.
That’s a fact – and it’s a big hit to a lot of families who thought that they were going to get help to pay their Obamacare premiums.
That doesn’t even count the people who decided that the insurance was just too expensive, and decided not to buy it.
According to H&R Block, those people paid the IRS an average tax penalty of $178.”
I added the emphasis to the tax payment amounts because I suspect that they would probably surprise most of us. While news reports mostly state that “repeal and replace” is losing political and popular momentum, I don’t see that happening. In fact, in a meeting yeterday with a group insurance broker, she reported that her small businesses in Pennsylvania are facing premium rate increases in the realm of 50% are furious and she does not understand why this is not being reported in the news.