Our Health Policy Matters

The President focused on income inequality in his State of the Union speech.  This is an important issue; as the gap widens between those rich and poor. But income inequality is built into our public policy at so many levels – and even at the lowest ends of the economic spectrum sometimes the “wealthier” individuals receive better benefits than those who may need them even more.  A case in point is how the insurance subsidies work in the Affordable Care Act in the aftermath of the Supreme Court ruling of 2012. In these, the poorest individuals and families – those living below poverty level – fare the worst. This is an inequality that could be repaired easily and immediately. Here’s how this particular inequality works.  If you are a single person earning $11,375 per year, you pay the highest percentage of your income for insurance as anyone in any income bracket .  An example:  If you want to buy “silver plan” health insurance on the ...

The President focused on income inequality in his State of the Union speech.  This is an important issue; as the gap widens between those rich and poor. But income inequality is built into our public policy at so many levels – and even at the lowest ends of the economic spectrum sometimes the “wealthier” individuals receive better benefits than those who may need them even more.  A case in point is how the insurance subsidies work in the Affordable Care Act in the aftermath of the Supreme Court ruling of 2012. In these, the poorest individuals and families – those living below poverty level – fare the worst. This is an inequality that could be repaired easily and immediately. Here’s how this particular inequality works.  If you are a single person earning $11,375 per year, you pay the highest percentage of your income for insurance as anyone in any income bracket .  An example:  If you want to buy “silver plan” health insurance on the ...

There was some surprisingly good news this month about the cost of insurance under Obamacare.  It will be cheaper than expected.  But it remains to be seen – will cheaper insurance satisfy Obamacare doubters on either the left or the right? I doubt it, but first let’s take a look at the details. A few months ago, the Wall Street Journal warned of health insurance sticker shock when the Obamacare insurance exchanges open for business in another ten weeks.  There could be an up-to-50 percent increase in health insurance premiums, the Journal warned. But a report this month from the Department of Health and Human Services Office of the Assistant Secretary for Planning and Evaluation (ASPE) brought a surprise.  Based on data from the first eleven states reporting actual premium numbers, ASPE now says that insurance costs for Obamacare “silver” plans for individuals will be 18 percent lower than originally projected by CBO. Premiums for the l...

There was some surprisingly good news this month about the cost of insurance under Obamacare.  It will be cheaper than expected.  But it remains to be seen – will cheaper insurance satisfy Obamacare doubters on either the left or the right? I doubt it, but first let’s take a look at the details. A few months ago, the Wall Street Journal warned of health insurance sticker shock when the Obamacare insurance exchanges open for business in another ten weeks.  There could be an up-to-50 percent increase in health insurance premiums, the Journal warned. But a report this month from the Department of Health and Human Services Office of the Assistant Secretary for Planning and Evaluation (ASPE) brought a surprise.  Based on data from the first eleven states reporting actual premium numbers, ASPE now says that insurance costs for Obamacare “silver” plans for individuals will be 18 percent lower than originally projected by CBO. Premiums for the l...