The Right Coast

Editor: Thomas A. Smith
University of San Diego
School of Law

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Thursday, November 7, 2013

The simple question that will determine Obamacare's fate |

So, of 29 million people who might enter the Obamacare exchanges, about 17 million would be eligible for subsidies. That's about 59 percent who would be eligible for taxpayer-paid assistance, versus 41 percent who are not. That's a majority on the subsidy side, but not a huge one. Then figure that some of those who are eligible for help will only be eligible for very small subsidies. For example, a family of four in St. Louis, Mo., with one parent who earns $48,000 and another who earns $37,000 would be eligible for a subsidy -- all of $13 per year to pay for an $8,088 policy -- that is virtually no help at all. (The numbers come from the Kaiser Foundation's online subsidy calculator.)

Out of the 59 percent who are eligible for subsidies, then, some portion will receive subsidies that do not cover the increased cost of their new coverage. For them, Obamacare will be a net loss. So, it's unlikely Obamacare will actually help the full 59 percent of those eligible for subsidies by Kaiser's estimate. The bottom line is, Obamacare could very well hurt substantially more than 41 percent of the people who are currently uninsured or purchase coverage on the individual market. That's not exactly making the system work "better for everybody."


They just have to get to 47 percent or so.

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The average insured person suffers a loss when you consider that the return on his premiums will be less than 80%.

Furthermore, a person freed from Obamacare could find the same care at from 1/9th to 1/3rd the USSA price in Mexico, Costa Rica, Prague, Budapest, Brazil, India and Thailand.

Posted by: Jimbino | Nov 7, 2013 8:12:20 AM