"It's A Crisis Situation": One Chart Explains Why Obamacare Is Locked In An Inescapable Death Spiral

Ever since it was signed into law in 2010, defenders of Obamacare have dismissed staggering surges in annual premiums by highlighting only the rates paid by those fortunate enough to receive subsidies.  In fact, last year we wrote about Marjorie Connolly's, from Obama's Department of Health and Human Services, response to the Tennessee insurance commissioner's fear that the exchanges in his state were "very near collapse" after a staggering 59% premium surge:

“Consumers in Tennessee will continue to have affordable coverage options in 2017. Last year, the average monthly premium for people with Marketplace coverage getting tax credits increased just $2, from $102 to $104 per month, despite headlines suggesting double digit increases,” said Marjorie Connolly, HHS spokeswoman, in a statement.

We're unsure whether Connolly's comment was just propaganda intended to defend a failing piece of legislation or an intentional, blatant admission that the Department of Health and Human Services just doesn't care about the majority of Americans, the so-called 1%'ers, who are facing debilitating increases in healthcare costs simply because they manage to live above the poverty line.  We'll let you decide on that one.

Be that as it may, as the Miami Herald points out this morning, roughly half of all Obamacare participants, nearly 9 million people in aggregate, don't qualify for the subsidies that Connolly praised and have been forced to absorb debilitating premium increases for the past several years.

Meanwhile, the pie chart above from 2017 doesn't count the 1,000's of unsubsidized "millionaire, billionaire, private jets owners" making over $50,000 per year who have already been forced to drop their healthcare coverage because it was simply unaffordable...a move which the Reiter family in Florida was forced to consider for 2018 after the premiums on their policy surged 54% to a cost of $40,000 per year.

As open enrollment for Affordable Care Act coverage nears the deadline of Dec. 15, and Florida once again leads all states using the federal exchange at healthcare.gov, Heidi and Richard Reiter sit at the kitchen table at their Davie home and struggle to piece together the family’s health insurance for 2018.

 

The Reiters buy their own coverage, but they earn too much to qualify for financial aid to lower their monthly premiums. For 2017, they bought a plan off the exchange and paid $26,000 in premiums for family coverage, including their two sons, ages 21 and 17.

 

Keeping the same coverage for 2018 would have cost the Reiters $40,000 in premiums, a 54 percent increase. So they selected a lower-priced plan that covers less but costs $29,000 in premiums.

 

“That’s more than a lot of people’s mortgage payments,” Richard Reiter said. “For me, it’s a crisis situation.”

Of course, while the Herald attempts to blame the Trump administration for Obamacare's continued premium hikes in 2018, we would just remind everyone once again that premiums surged an average of 113% across the United States during Obama's last term...

But sure, it's all Trump's fault.

Comments

SantaClaws Mon, 12/11/2017 - 19:23 Permalink

$29,000 in premiums for a family plan?  Aside from wondering what the deductible must be, I have to question what health problems for this family are anticipated?  I would think trying a cash-only approach would be more sensible, unless a family member has some existing serious condition.I went cash-only when Obamacare came in.  So far, so good.

hongdo Mon, 12/11/2017 - 19:31 Permalink

Done to healthcare what he done to education.  Thank God he's gone.  Now if Trump could just get around to fixing this stuff ........Credentials:  $20,000 per year for 1

karenm Mon, 12/11/2017 - 19:29 Permalink

LOads of hospitals going bankrupt, as well as clinics and tons of layoffs across the entire healthcare sector. Everyone from Pfizer and Merck to any hospital anywhere. Google it.

Offthebeach karenm Mon, 12/11/2017 - 19:43 Permalink

Have a good people hospital here.  Handled most anything.  Well supported by donors. It is a production nightmare.  Expensive staff spend ???? a third of labor time walking.  Wing after add on wing.  You can get lost.  Picture 1920's English car builder, but new.  It is deep in a gridlock part of town.  Hard to get to, hard parking.  It ought to be outside by the highway as ambulances come from 50 miles then have to fight the last 5.No local competition either.   

In reply to by karenm

ghengis86 Mon, 12/11/2017 - 19:33 Permalink

$10k premium, $5,400 deductible, family plan, United Healthcare, Illinois. I'm going illegal this year. The IRS can eat shit too. Don't report me

Bankers R Wankers ghengis86 Mon, 12/11/2017 - 20:59 Permalink

Good choice Ghengis, better late than never, I have gone without insurance by choice for the past 8 years. Saving approx 60k in the process, the only bill I had was my wife's C section which totaled 24k, but when I offered to pay $$ upfront they lowered the whole thing Doctors and all to $8k....... Laughed all the way to the bank. Fuck Obozo, and I have never paid the IRS fine, just say "I cant afford it" on my tax return (And I make 6  figures)

In reply to by ghengis86

Fantasy Free E… Mon, 12/11/2017 - 19:50 Permalink

Lobbyists wrote a bill and payed our lawmakers to pass it. Seriously, who expects it to benefit the general public?http://quillian.net/blog/fantasy-free-healthcare/The law was written for the express purpose of increasing the percent of income we all spend on health care. Why would any citizen come out ahead?There are feeding frenzies everywhere. Licensed pharmacists are doubling as telephone solicitors on behalf of their pharmacy. Insurance companies give them patient's records. They call with recommendations for drugs. Office visits are down to about 7 minutes of a doctor's time. If this is what people want, there must be a lot of happy people.

Md4 Mon, 12/11/2017 - 19:52 Permalink

"The Reiters buy their own coverage, but they earn too much to qualify for financial aid to lower their monthly premiums. For 2017, they bought a plan off the exchange and paid $26,000 in premiums for family coverage, including their two sons, ages 21 and 17.

Keeping the same coverage for 2018 would have cost the Reiters $40,000 in premiums, a 54 percent increase. So they selected a lower-priced plan that covers less but costs $29,000 in premiums."

Why are you buying health care "coverage" at such obscene "prices"??

How much "care" did you use last year?

If little, or none, is there a reason to believe this year will be different?

Folks...STOP the madness yourselves!

With or without a mandate, just refuse to feed this insanity. Until and unless healthcare costs plummet, stop buying the "insurance".

Use minor emergency care for actual care need--out-of-pocket--even if you have to borrow the money.
You can at least pay it back over time, AND you get the benefit of credit reporting if paid on time.

For catastrophic care--go to an ER--and pay what you can. Let THEM figure out how to cover the rest.

If you're going to cough up $40k+ for wasted premiums anyway...

...set aside the same dough in a separate cookie jar to help cover large out-of-pocket costs. That at least remains YOUR money, added to year after year, to help defray potential future expenses.

Stop giving this insane "system" anything beyond what YOU can actually afford.

Ask yourself...at what point will their price force me out of coverage no matter what I do?

Next year?

In a couple years?

How much of that money could YOU have saved for YOUR needs??

Instead of giving it to them?

It's enough when YOU say it's enough.

Have you had enough yet??

new game Md4 Mon, 12/11/2017 - 20:24 Permalink

what mandate? really, never gave a shit then and don't know. do your self a favor and make decisions based on reality. i certainly don't go look at a lexus when all i can afford is a corolla..wake the fuk up(and quite listening to your fear or wife), and get some balls and make a stand. fuk roberts too, another traitor...

In reply to by Md4

Cassandra.Hermes Mon, 12/11/2017 - 20:02 Permalink

Why even bother to talk about Obamacare?
Look into Republican tax reform!
It is the biggest scam ever!
And France rewarded millions of Euros “Make Our Planet Great Again” grants to 18 American scientist, yeah we are laughing stock.
And we are electing pedophile tomorrow supported by Evangelical Christian, who supposed to be values voters. What are the values? May be they need more out of wedlock babies to rape them!

HRH of Aquitaine 2.0 Mon, 12/11/2017 - 20:16 Permalink

This is out-and-out socialism and redistribution of wealth.

What is free for some costs others dearly.

This is liberal insanity and hypocrisy in action. I think it is insane. I keep thinking, "can it get any worse?" And it does.