We all hear a lot of talk in regards to the Affordable Care Act or ACA or ObamaCare in the news and to me it is always so vague on details it leaves me scratching my head asking ”what is ACA really doing for Americans- holistically?” I know I am not alone in this thought as even politicians are scratching their heads wondering what they signed off on without really reading. So I did a little research based on of course the numbers and attached a graphic from the Heritage foundation on the current fiscal budget to reference as you read (if you chose to). Enjoy!
So first let’s take a look at the full scenario in America based on surveys conducted by various agencies in which I will list at the end of the article for your review.
• Based on a 2012 Census report there are 48 million uninsured Americans or 15.4%
• In 2012, about three-fourths of working-age adults with low incomes (less than $14,856 a year for an individual or $30,657 for a family of four)—an estimated 40 million people—were uninsured or underinsured.
• Fifty-nine percent of adults with moderate incomes (between $14,856 and $27,925 for an individual or between $30,657 and $57,625 for a family of four)—or 21 million people —were uninsured or underinsured.
• Adults who were uninsured were less likely to receive recommended preventive care in 2012. For example, only 48 percent of women who were uninsured during the year received a mammogram within the recommended period, compared to 77 percent of those who were well insured all year.
• Median household income was $51,017 in 2012, not statistically different in real terms from the 2011 median of $51,100
The ACA health insurance premiums are projected to be an average of $328 monthly or $3,936 annually for a Bronze package. I myself settled up to battle the Healthcare.gov (when it worked) to see if the healthcare exchange would be better for myself and family and my premium per month was $946 per month- my employer coverage is currently $115 per paycheck bi-weekly and will increase by $30 a paycheck next year so with my current high deductible plan I will pay $290 per month with additional cost going to a tax-free Health Savings Plan which I will contribute $500 to annually with an additional contribution of $800 annually from my employer. I am apart of the 85% of Americans that have health insurance coverage – my worries are what about those that do not?
Now, let’s look at the penalties for the coming years if one were not to procure health coverage for various personal reasons:
(All calculations are for perspective purpose only! Flat and null of market fluctuations based on if more Americans were to obtain insurance in this time frame, affects of inflation over time, lowered average premium cost, and amendments made to penalties.)
2014 Scenario
In 2014, the fine to remain uninsured is $95 per person (up to a family maximum of $285, or 1 percent of family income, whichever is greater) and $47.50 per child. Now most families in America will be charged the max $285 based on the above mentioned data. As most that would not qualify for subsidies as they make to much money so in the first year these charges would equate to approximately 30 million American families being charged this fee so that would be $8.5 billion collected in fees the first year and $6.8 billion paid out for subsidized beneficiaries.
2015 Scenario
The penalty will increase to $325 per person and $162.50 per child in 2015 or $925 maximum or 2% of family’s annual income; greater cost will be deducted. Penalty fees will be collected in the amount of $27.75 billion and $6.8 billion dispersed to handle subsidized beneficiaries.
2016 Scenario
In the following year the penalty will cap at $695 per person and $347.50 per child or 2.5% of a family’s income up to $2,085; greater cost will be deducted. In each of these penalty scenarios that I just discussed most family’s will pay the top amount each year for not having health insurance, so using the above mentioned number of 30 million Americans unable to procure health insurance in the year 2016, the amount of fees collected from uninsured working/unemployed Americans would be $62.5 billion and than tax funds would pay $6.8 billion for those that are subsidized with credits.
Now let me wrap up the numbers portion of this article….
In just three years, ACA will collect fines of $98.75 billion if the uninsured stay as they are and face the penalties as they have not found a affordable way to obtain health insurance at the average median income of $51,017 a year, and distributed 20.4 billion for subsidized beneficiaries based on my flat line calculations that do not include fluctuations in the market as they are difficult to predict with my level of research.
Enrollment and Exemptions
Many of us know you can sign up for health coverage on an exchange anytime between now and March 1, 2014 and your coverage would begin Jan. 1, 2014, at the earliest. If you do not enroll in that window, you will not be able to get health coverage through the insurance exchange marketplace until the next annual enrollment period unless there are extenuating circumstances. To achieve subisidies and exemptions you would have to fall under one such scenario of the following:
•You are uninsured for less than three months of the year.
•You live illegally in the United States.
•You’re incarcerated and not awaiting disposition.
•You’re a member of a recognized Indian tribe.
•Your income is officially deemed too low ($10,000 a year individual/$20,000 family).
•The lowest-priced converge would cost more than 8 percent of your household income.
•You’re a member of a recognized religious sect with religious objections to insurance, including Social Security and Medicare.
•You’re a member of a recognized health-sharing ministry
My Thoughts..
I am not sure if this program will settle the weary American woes of health insurance, but I am certain that it will cost financially weary Americans some additional money every year if they are not able to budget appropriately for Health coverage in their current fiscal scenario. My hope is that Americans look at these numbers and start to engage a plan to either go with the current ACA policy or become engaged in a solution to better our American health industry through vigorous passion and undeniable voice! What is your stance?
OUR VOICE. OUR ACTION. OUR NATION
For inforamtion verification and sourcing see links below:
http://www.census.gov/hhes/www/hlthins/
http://aspe.hhs.gov/health/reports/2012/uninsuredintheus/ib.shtml
http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions
The Requirement to Buy Coverage Under the Affordable Care Act
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