Skip to comments.Federal insurance exchange subsidies cut premiums by average of 76%, HHS reports
Posted on 06/18/2014 11:35:56 AM PDT by SeekAndFind
The Americans who qualify for tax credits through the new federal insurance exchange are paying an average of $82 a month in premiums for their coverage about one-fourth the bill they would have faced without such financial help, according to a new government analysis.
But the analysis shows wide variations among states in the premiums that people are paying for their new insurance, the amount the government is picking up and the proportion who qualify for the subsidies.
The 28-page report, by the Department of Health and Human Services, is the governments first effort to gauge the affordability and availability of health plans under the Affordable Care Act, now that the first insurance sign-up period has ended.
Federal health officials, who insisted on briefing reporters on the condition of anonymity, acknowledged that analyzing what has happened remains a work in progress. Still, they said the reports results buttress the Obama administrations contention that the new insurance marketplaces are working.
(Excerpt) Read more at washingtonpost.com ...
Where are the subsidies coming from???
Massive subsidies (theft) reduce the costs to takers (thieves)?
So, um... what will it cost when:
a. The subsidies run out?
b. The rate increases come because mostly the older and sicker population is buying?
c. The companies continue to have massive losses
In the bizzaro world of liberal government, the fact that people are getting subsidies means that health care premiums have been “cut.” Any wonder this country is swirling down the toilet? We are going to “cut” ourselves into bankruptcy.
And golden parachutes for the insurance companies to boot.
All courtesy of the middle class suckers. What’s left of them of course.
No 76% reduction for them.
Every time a subsidy is dished out, that means somebody, somewhere is getting something for nothing. And for somebody to get something for nothing (or at least, very little), then somebody else, somewhere else, is getting nothing for something.
Enforced charity is no charity at all. “Equality” is one of the greatest scams and frauds perpetuated on the public anywhere, and it does not, cannot, ever achieve its stated objective.
But it sure gains its unstated objectives. A totally unbalanced economic and moral climate and concentration of power into the hands of a very small oligarchy, unresponsive to the public and without legal constraint on the exercise of that power.
It's like this .... :
By accepting a tax credit, low-income or lower-middle class families face significant tax ramifications and potential financial risk. Congress has changed the rules twice on consumers for the credits, making the income cliffs steeper, and fully equipping the IRS to claw back overpaid subsidies (unlike the individual mandate penalty). The flip side of the tax credits is almost unknown to the general public.
Republicans have by and large ignored the tax credit issue unless talking about the budget implications. Perhaps the silence is due to the fact that Congress has voted to change ObamaCare twice to increase the financial risk that families could face when they take the credit.
Since the enactment of ACA, these limits have been amended twice: first under the Medicare and Medicaid Extenders Act of 2010 (P.L. 111-309), and then under the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayment Act of 2011 (P.L. 112-9). Congress changed the payback protection to vanish at the 400% poverty level and increased the payback amounts at 200% and 300% FPL from what they had been before.
The result will be surprise bills from the IRS in the mail come tax time 2015, in the order of a couple hundred dollars all the way up to full value of any subsidy received if a family crosses the 400% FPL threshold. (This could be $10,000-$12,000 for a family of four, as an example.) Just a few dollars of extra income could result in thousands of back taxes to be paid.
I find it interesting also that the Dems don't talk about them nearly as much as I thought they would.
To advertise them is to invite lots and lots of fraud and the IRS is already going to have to go after hundreds of thousands of people who are underpaying as it is.
Lots of folks were encouraged to sign up and “best guess” about income, etc. ..... with no income verification built in to the system, there were a lot of miscalculations & the changes Congress made created an ever-moving target. I think there’s going to be a lot of wailing and gnashing of teeth next year when numbers of these “I love my Obamacare” folks who think they’re really getting a ‘deal’ get a tax bill. Also, these folks, per the article, signed up for the lowest premiums which means higher co-pays, deductibles, etc. .... wonder how that’s working out for them.
Will I be receiving a Thank You card in the mail?
I’m still waiting for the food stamp welfare queens to thank me.