Friday, November 15, 2013

Visit with Armstrong & Getty, 11/15/13 re: Covered California Subsidy Confusion and Practical Difficulties with Pres. Obama's Latest "Revisions" to PPACA

This morning we walked through the basic requirements as to how Health Reform subsidies are supposed to be determined and the confusion running rampant in the Exchanges.  We discussed the impractical and political nature of yesterday's announcement that the federal government will now be picking and choosing which "taxes" to enforce (remember the individual mandate is a tax according to the Supreme Court).

The latest announcement will mean that some folks can keep what PPACA actually deems as "inadequate" coverage for at least one more year.  This further means that for folks who don't buy in the Exchange or from an employer, the Obama Administration will be choosing not to enforce tax laws.  I don't see any way this could be held to be a legitimate function of government.  Tax laws must be enforced uniformly.  But that is a different topic for a different day.

Part 1 of my Interview:

Part 2 of my Interview:

Below is the entire second hour of today's show.  My interview is in the first 20 minutes.   

7 AM - 1 - Our Obamacare expert Craig Gottwals is LIVE in studio talking Obamacare and its "fix" with us. 2 - More with Craig Gottwals. 3 - Marshall's News. 4 - Daily Show mocked Toronto mayor.

Here are some sample rates after subsidies in Covered California's Exchange:  
  • A single person making $28,725 a year in California would have to pay $193 a month for the second lowest cost Silver plan––10% of their after tax income––for a policy with a $1,500 deductible and a $45 primary care co-pay. 
  • Even a person making only $22,980 would pay $121 per month––again 10% of their after tax income––for a $1,500 deductible and a $40 primary care co-pay.
  • A family of four making $59,000 a year will typically pay $400 a month for a policy with a $2,000 deductible.
  • A family of four making $71,000 a year will typically pay more than $500 a month for that second lowest cost Silver plan with a $2,000 deductible––again about 10% of after tax income. 
  • And these lowest cost plans will likely have "narrow networks." If they want a better network, and one is available, they will pay more.
  • In traditional health insurance terms, these are pretty good deals. But, how many of these families have an extra $400 or $500 a month in their checking account for what might look to them to be a piece of paper with a $2,000 deductible? 

All Armstrong and Getty podcasts available here.

Playlist of Craig's Appearances on Armstrong and Getty in 2013 here.