On behalf of the President, The White House sent correspondence with the good news that hundreds of thousands of people have signed up for health insurance on the marketplace exchanges despite all the 'glitches'. The email stated that people were already seeing benefits. However, this is difficult to comprehend since premiums must begin immediately, while coverage doesn't begin until January 1, 2014.
There was a link where people could go to get an idea of how much the premiums would cost. By selecting a family of three living in Henry County, the following results were given:
- Catastrophic coverage, paying less than 60 percent of medical bills, with a deductible too high to be mentioned, cost between $472-587.00 monthly.
- Bronze coverage, paying 60 percent of the medical bills, with a deductible of $5,000 for individuals and $6,300 for the family, costs slightly less than $600 a month.
- Silver coverage, paying 70 percent of the medical bills, with a deductible of $6,250, costs around $693 per month or $824 a month with a $1,750 deductible.
- Gold plans with $3,500 deductibles costs slightly less than $800 per month. Gold pays 80 percent of the medical bills.
- Platinum coverage begins around $900 monthly.
The website explains that the true and actual cost of the plan a person chooses can't be determined unless the applicant inputs all financial information, including social security numbers, bank routing numbers, etc. It is noted that many people will qualify for subsidies. A household of three can make up to $78,120 annually and still qualify for a subsidy. There is a catch, however. People earning slightly less than $20,000 will get the bulk of the subsidy. The closer one gets to the higher end of the income limit, the less subsidy amount will be available.
The subsidy amount will probably follow that of the Earned Income credit, where a person earning $70,000 annually will receive a subsidy of $5-10.00. Another important fact to remember is this, the insurance isn't paying a penny to anybody until you pay your part first. It will be impossible for the average person to come up with $5,000 just to gain the privilege of having health insurance.
There are also the co-pays that must be paid up front. These range from 30-40 percent of the medical bills.
For most families, unless they can be sure of getting a large subsidy, staying away from the exchanges is best. Once your personal information has been given, you have signed up, even if you try to cancel.