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ObamaCare Premiums Going Up 25% Next Year; What You Need To Know About Healthcare

President Obama in Miami

So you’ve heard about ObamaCare a lot since its inception in March, 2010. It’s a hot button issue politicians play tog-o-war over everyday. Depending on which side of the aisle you fall, or from which news outlets you consume information, you’ve likely heard over and over again polarizing opinions of ObamaCare. You’ve either heard that it’s great, that it’s necessary, that it’s a no-brainer for a Democratic society, or you’ve heard that it sucks, that it’s the worst, that it’s unconstitutional in a Democratic society.

You definitely heard that its website sucked when it launched. At least that’s something we can relate to.

Well with yesterday’s news that healthcare premiums under the Affordable Care Act (ObamaCare) will go up by as much as 25% next year, I thought it the right time to lay out the facts so that you, a normal dude trying to be a real-life person, can know what the fuck you’re reading when you see it mentioned, and know what the fuck you’re talking about when someone brings it up.

Oh, and know what the fuck you’re rooting for in terms of your own coverage and how it affects your own finances.

ObamaCare On Principle

On principle, ObamaCare (or the Affordable Care Act, whatever you want to call it) is a resounding yes. We have schools and roads and law enforcement and national security — all provided equally regardless of income level or tax bracket — why wouldn’t everyone too have healthcare? We’re the greatest nation in the history of the world, with the greatest military and the greatest economy, shouldn’t we all be covered with healthcare? And shouldn’t that healthcare be the best on the planet?

Most believe yes, and Obama ran on “yes, and I’ll provide it” in 2008. When elected, he made it a pillar of his legacy to get as many people in the United States insured as possible and to overhaul the U.S. healthcare system, top to bottom, making significant improvements.

Sounds great. Go Barry go. The problem? It’s a GIGANTIC, super complex system involving hundreds of millions of people and trillions of dollars and, when you tweak it, that process is a fucking train wreck. That process costs an ABSURD amount of money and causes a HUGE amount of headache.

Adding enormous financial burdens to an economy that’s been through chaos, and to a country that’s trillions of dollars in debt, is dangerous. Add that not a single Republican voted for ObamaCare (34 Dems voted against it) and no, it has not gone smoothly.

Over six years later, here we are.

PREMIUMS

The latest news and the catalyst for this blog is that premiums will be going up for next year. Way up. The New York Times, in this morning’s Briefing, detailed what the latest could mean for an average 27-year-old, someone likely similar to you or me:

Premiums for some plans under the Affordable Care Act will rise by an average of 25 percent next year, the government said.
 

That means for a 27-year-old consumer, the average monthly premium for a benchmark plan could be $302 next year, up from $242 this year, a federal report noted.

Speaking for myself, my healthcare bill going up $60 per month would fucking suck. Why and how is this happening? Well the Chicago Tribune’s editorial board, who endorsed Obama in 2008 and 2012, wrote last month:

Obamacare failed because it flunked Economics 101 and Human Nature 101. It straitjacketed insurers into providing overly expensive, soup-to-nuts policies. It wasn’t flexible enough so that people could buy as much coverage as they wanted and could afford — not what the government dictated. Many healthy people primarily want catastrophic coverage. Obamacare couldn’t lure them in, couldn’t persuade them to buy on the chance they’d get sick.

In Riggsy terms, this happens because the government (ObamaCare) applies both individual and business mandates. These are the most controversial elements of the bill, as they force both individuals and businesses into covering things they don’t want to cover, paying for things they don’t need, or paying fines if they refuse to do the aforementioned.

Yes, millions of people are now covered that were not previously covered, but that comes at a cost that must be absorbed by someone — those someones are normal people paying premiums, and at a much higher rate than they used to. Which sucks.

Even Slick Willy called it “the craziest thing in the world.”

The Good

Now, let’s not be all biased. Let’s not go full ConserveStool on this fine Tuesday. Yes, there is plenty of bad and seeing your coverage sliced in half while your premiums double is depression city, but there is some good. As Bill mentioned, 25 million more people have coverage than before and there are countless testimonials of people whose lives have improved and even been saved because of ObamaCare.

These are people that receive subsidies because of financial standing, so “three-fourths of consumers would still be able to find plans for less than $100 a month with the help of federal subsidies.” And again, in a Democratic utopia, this would be great. It’d be a no-brainer.

But that’s not what we live in. More people getting covered and at a relatively low cost means the financial burden must fall somewhere: it falls mostly on middle-class folks who find themselves just outside the subsidy circle. Their premiums are the ones rising — that sucks not just for their disposable income, but also for the residual effects on the entire U.S. and global economies.

When you hear about ObamaCare, that’s what’s going on. You’re welcome. I’ll leave you with the tweak to a tweet from last night that Intern Robbie made for me.

RiggsTweet

*It’s difficult to detail such a complex issue in one short, consumable, and (hopefully) interesting blog. If I missed something or if I’m blatantly wrong about something, please email me. While I am oft considered, at best, one of the least dumbest people on our network, that’s not a rousing intellectual endorsement. I am frequently very dumb; email riggs@barstoolsports.com.