Major Obamacare expansion in Covid relief package

This article caught my eye because of the paragraph I highlighted. “Set to skyrocket in 2023?” Set by who, based on what? We don’t even know the increases for 2022 let alone 2023.

If there is any skyrocketing from COVID it will occur in 2022 and would have occurred to some extent in 2021 based on 2020 utilization. But that is not the case.

Mitigate such increase by simply having government pick up a higher tab? That is not mitigation, it’s simply shifting the higher costs from one place to another.

The bill lifts the income limits (for Obamacare) on the subsidization of premiums, which will be now 400 percent of the federal poverty line. 

Those in households that are at 150 percent of the federal poverty line will now qualify for Medicaid.

A single person with an income of $60,000 income could see subsidies more than double for their health insurance.

Insurance premiums are set to skyrocket in 2023, something this amendment of the bill is anticipating and trying to mitigate with the expansion of the subsidies and tax rebates for those with private insurance.

The Congressional Budget Office estimates this aspect of the relief package will cost $44 billion over the next decade.

Source: Major Obamacare expansion in Covid relief package – Must Read Alaska

Contrary to the skyrocketing scenario, consider the following:

• A JAMA study found five factors that affect the cost of healthcare: a growing population, aging seniors, disease prevalence or incidence, medical-service utilization, and service price and intensity.

• In the long term, the financial impact of COVID-19 related healthcare spending is not expected to significantly affect healthcare spending in general.

Source: https://www.investopedia.com/insurance/why-do-healthcare-costs-keep-rising/

One comment

  1. Of course insurance will increase in 2023, increased subsides of 2021 & 2022 will end. Just as COBRA is expensive – just 2% more than what was being paid by you & employer before job separation.

    Liked by 1 person

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