The cost of healthcare under Obamacare, also known as the Affordable Healthcare Act, became available yesterday thanks to a calculator offered by the Kaiser Family Foundation (KFF). Figures provided by the White House to illustrate how much the act will “save” people were loaded to their estimating tool for every ZIP code in the United States.
The media jumped on the story to show tremendously low costs. Michigan Radio yesterday used figures for the heaviest of the subsidies that are available. Although they did not give actual comparisons Michigan Radio stated that a 27-year-old will only pay $99 per month for healthcare while a family of four would pay just $115 for the same plan.
However the subsidized costs for premiums does not show the high deductibles of the plans.
For a family of 2 earning the state average income of $75,000 the cost will jump significantly. According to the calculator provided, the cost will be $960 per month with an out-of-pocket expenses limited to $12,700. Currently United Healthcare, the second largest insurer in Michigan behind Blue Cross, sells a policy with similar coverage for $786 per month with a $3,000 out-of-pocket maximum. This means Obamacare could cost $24,222 per year ($11,522 + $12,700) versus United Healthcare’s $12,432 ($9,432 + $3,000) per year. This is a 94.8% increase if a family has a catastrophic health issue in the year. If no health issues arise during the year the new affordable premium is an increase of 22.4%.
Calculate your own healthcare expense using the questionnaire by clicking here. Note the calculator works in all 50 states.
Healthcare costs in Michigan are an important part of the political culture. Unions supported Obamacare initially but have since requested to opt-out of the program. The top books explaining Detroit’s political evolution has been shaped by unions and others are in the attached list.
Detroit politics in books