Tuesday, March 23, 2010

Left and Right Can Agree On This - Health Care Costs Will Rise

From the right - insurance premiums are surely going to rise with a whole host of new requirements to provide coverages.

From the left - insurance premiums are going to rise for those who have insurance and this does nothing to bend the costs of health care.

In fact, it seems to be an agreement that this bill will actually make it more expensive for the middle class.

The bill will impose a financial hardship on middle class Americans who will be forced to buy a product that they can’t afford to use.

A family of four making $66,370 will be forced to pay $5,243 per year for insurance. After basic necessities, this leaves them with $8,307 in discretionary income — out of which they would have to cover clothing, credit card and other debt, child care and education costs, in addition to $5,882 in annual out-of-pocket medical expenses for which families will be responsible.
There isn't any cost containment and if you already have insurance, what do you think is going to happen when insurance companies are mandated to carry individuals until they're 26 - extending the family coverage for additional years - that will necessarily increase the premium costs across the board.

The same goes to spreading out the risks of carrying individuals who are now subject to recission and or are denied coverage? The insurance companies aren't going to do this out of the goodness of their corporate hearts of darkness. They're going to raise premiums for everyone to cover those additional costs.

From CBS - if you're already insured, watch your costs rise as your flex spending account maximum limits are reduced by 50%.   If you've taken advantage of flex spending accounts to handle your medical care, you might see your benefits reduced particularly if you max out your plan at present.

And all the aforementioned doesn't even begin to touch on the actual costs for the government on this massive tax and spend program.

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