Tech

What Could Have Been and What Still Has To Happen

Covered California, the state-run Obamacare health insurance exchange, announced on Wednesday that 59,000 people have so far signed up for health insurance.

Given that California amounts to about 10% of the nation’s population, this would suggest a smooth running federal exchange might well have enabled the Obama administration to have met its national first month goal of 500,000 sign-ups.

But the California enrollment also points to the real challenge Obamacare faces.

In the first month, 84% of the enrollees did not qualify for a subsidy. It has been widely estimated that about half of all potential enrollees will eventually qualify for a subsidy. As Covered California’s chief executive said, “Those are individuals who have been waiting a lifetime for health coverage.”

Covered California is not scheduled to release any age data until next week, but the health plans already know what they are getting. The President of the California health insurance trade association also said yesterday, “It is important for the exchange to achieve a balance in enrollment between the old and the young and the sick and the healthy to allow costs to be spread among all people.”

These Healthcare.gov problems have been a sideshow for Obamacare. The main event will be about whether more than just those who have been “waiting all of their lives” to get guarantee issue health insurance they are sure to make money on will eventually sign-up in adequate numbers.

While these information technology system problems were always going to get fixed, I will suggest the depth of these problems will eventually work against getting the broad based enrollment that is critical. Obamacare started with many Americans being cynical about it. That this is now the butt of jokes on late night TV and the Comedy Channel does not help it.

All of the publicity over those people, including me, who have lost their insurance, does not help either. One story after another has made the media with people talking about how they lost their quality health insurance and now have no option but to pay much higher prices for more deductibles and fewer provider choices. That there is rate shock is no longer in doubt. Those constantly repeated real life stories couldn’t help confidence in the law.

The President’s apology and the Democratic Capitol Hill stampede to now reinstate those policies only adds legitimacy to that storyline. And, all of the repeated spin by Secretary Sebelius and others, like trying to excuse the Healthcare.gov early problems as just a matter of the program’s popularity, has just made people more cynical. This administration now has a giant credibility gap when it comes to Obamacare.

Democrats have been arguing all this time that things will get better when consumers can actually go into the website and see for themselves how good the benefits and prices are.

A single person making $28,725 a year in California would have to pay $193 a month for the second lowest cost Silver plan––10% of their after tax income––for a policy with a $1,500 deductible and a $45 primary care co-pay. Even a person making only $22,980 would pay $121 per month––again 10% of their after tax income––for a $1,500 deductible and a $40 primary care co-pay.

I recently showed these numbers to an undergraduate class of about 50 students. I asked them if young people would buy it. I am not exaggerating here; about half the class shook their heads no and half laughed.

A family of four making $59,000 a year will typically pay $400 a month for a policy with a $2,000 deductible.

A family of four making $71,000 a year will typically pay more than $500 a month for that second lowest cost Silver plan with a $2,000 deducible––again about 10% of after tax income.

And these lowest cost plans will likely have “narrow networks.” If they want a better network, and one is available, they will pay more.

In traditional health insurance terms, these are pretty good deals. But, how many of these families have an extra $400 or $500 a month in their checking account for what might look to them to be a piece of paper with a $2,000 deductible?

I will suggest these people will have a very difficult decision to make once they can finally get into the websites.

Getting the first 500,000 likely older and sicker people to sign-up was the easy part––or it should have been.

Robert Laszewski has been a fixture in Washington health policy circles for the better part of three decades. He currently serves as the president of Health Policy and Strategy Associates of Alexandria, Virginia. You can read more of his thoughtful analysis of healthcare industry trends at The Health Policy and Marketplace Blog, where this post first appeared.

Livongo’s Post Ad Banner 728*90

68
Leave a Reply

43 Comment threads
25 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
30 Comment authors
best single serve coffee maker for officepersonal breathalyzermy visa account balancecompare essential oilsHupsista Recent comment authors
newest oldest most voted
best single serve coffee maker for office
Guest

Excellent way of telling, and fastidious paragraph to obtain facts concerning my presentation topic, which i
amm going to delver in school.

My site best single serve coffee maker for office

personal breathalyzer
Guest

I was curious if yoou ever considered changing
the layout oof your website? Its very well written; I love what
youe got to say. But maybe you could a little more in the way oof content so
people could connect with it better. Youve got an awful lot oof text for only having one or twoo pictures.
Maybe you could spae it out better?

Here iis my web site :: personal breathalyzer

my visa account balance
Guest

The new Web video from Matt Harding, accidental professional dancer, is up, and
it is spectacular, a cry of life and brotherhood and joy. For accommodations at the Fairmont Hotel at Millennium Park, go here.
Goa’s one of the appealing ends is vacation spots that give the awestruck and supernatural see of nature.

compare essential oils
Guest

Hello! I’m at work surfing arond your blo from my neew iphone!
Just wanted to say I love reading hrough your blog and look forward to all
your posts! Keeep up the superb work!

Feel free to surf to my weblog; compare essential oils

Hupsista
Guest

It’s actually a nice and useful piece of information. I’m satisfied that you
simply shared this useful information with us. Please stay
us up to date like this. Thank you for sharing.

Louboutin Pas Cher
Guest

Whether you are turkey hunting, mushroom hunting or enjoying a spring walk in the woods, be on the lookout for suspicious activity. Things you may come across include baited areas, marijuana grows, and methamphetamine activity.
Louboutin Pas Cher http://www.rocketairsupply.com/LouboutinPasCher-Fr.html

Ugg Classic Cardy Clearance
Guest

It is curiously moving that, after almost a century, they have been published again and can once more inspire children to think for themselves.
Ugg Classic Cardy Clearance http://www.gemini14nyc.com/UggClassicCardy.html

ugg pas cher
Guest

16.24: Apple currently holds 15.1 per cent of the global smartphone market share, according to the IDC Worldwide Mobile Phone Tracker, published in August 2013. That compares to 31.6 per cent for Samsung.
ugg pas cher http://www.trifidmedical.com/FR-ugg-pas-cher.html

バーバリー マフラー アウトレット
Guest

バーバリー(Burberry)コート、マフラーとストールを海外通販!バーバリー(Burberry)の 定番から日本未入荷、入手困難なバーバリー トレンチコートを世界のアウトレット店舗 からいち早く通販・輸入代行!全国送料無料 !
バーバリー マフラー アウトレット http://www.diogene99.com/バーバリーマフラーアウトレット.html

モンブランボールペン
Guest

MONTBLANC モンブランボールペン 13209 BP. モンブランを代表する「MAISTER STUECK(マイスターシュテック)」シリーズ13209 BP。 伝統ある洗練されたデザインと、 軽く滑らかな書き心地が人気の逸品です。
モンブランボールペン http://www.losarrudos.com/モンブラン万年筆.html

bailey bow tall uggs
Guest

Sharing some thing is better than keeping up-to our self, thus What Could Have Been and What Still Has To Happen | The Health Care Blog the YouTube video that is posted here I am going to share by my relatives and colleagues.
bailey bow tall uggs http://embhonpe.org/En/CyberMondayUgg/CyberMondayDealsUggs/uggs-bailey-bow-tall-boot.html

Air Max 1 Hyperfuse Femme
Guest

No. 80: Get your classic thrill on at . But perhaps not on a full stomach. ( for News)

canada goose pas cher
Guest

Vingt et un an après, que pensez-vous de votre BD?? Avez-vous eu envie de changer pas mal de choses dans cette version??
canada goose pas cher http://www.firminyvolleyball.com/css/canadagoose-fr.php

abercrombie
Guest

Derniers ouvrages parus : ?A toi?, avec Pascal Janovjak ; ?M?n?, aux éditions Liana Levi, 2011 et 2013.
abercrombie http://www.agenceneptune.com/FR/Abercrombie/

lancel pas cher
Guest