Despite Promise to Lower Costs By $2,500, Americans are Learning Harsh Reality of Health Law’s Sticker Shock
President Obama’s broken promise of “if you like your health care plan, you can keep your health care plan, period. No one will take it away, no matter what,” earned him the notorious “Lie of the Year” distinction. Unfortunately, the broken promises don’t stop there as the president also promised that under his comprehensive plan, families could save up to $2,500 per year. Not only are premiums increasing by as much as 400 percent, but out-of-pocket health care costs are skyrocketing as well. As the AP explains, “Many will find they must pay costs up to $6,350 — on top of their monthly premiums — before their insurance pays anything for actual medical care. If they have a family, they may have to pay nearly $13,000 in an out-of-pocket ‘deductible’ before insurance starts paying.”
December 16, 2013
Unawareness About Deductibles May Bring Obamacare Sticker Shock
The next big challenge for the nation’s health care law may be sticker shock, when consumers find they’re still paying high medical bills after buying low-cost insurance for the first time.
With a Dec. 23 deadline looming for anyone who wants health insurance by Jan. 1, people may hurry to choose plans with cheap monthly payments on a new insurance marketplace. But they may be surprised, especially if they’ve never had coverage before, to find they’re still on the hook for thousands of dollars in out-of-pocket “deductibles,” a standard part of most insurance policies.
Many will find they must pay costs up to $6,350 — on top of their monthly premiums — before their insurance pays anything for actual medical care. If they have a family, they may have to pay nearly $13,000 in an out-of-pocket “deductible” before insurance starts paying.
If you don’t know about deductibles, you’re not alone. Only 14 percent of American adults with insurance understand deductibles and other key concepts of insurance plans, according to a study published this year in the Journal of Health Economics.
If people with insurance don’t understand it, it’s likely that uninsured Americans’ grasp is even fuzzier. If they make poor decisions when shopping for insurance for the first time, they may be surprised that the law’s promise of affordable care, for them, is still out of reach. …
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