Uncategorized

Response to Sticker Shock: More Expensive Than What?

From Guest Blogger Cathy Hope of the Georgetown Center for Children and Families.  (See her original post here.)

Whenever I read stories about the sticker shock that may hit some consumers when the Affordable Care Act takes effect, it reminds me that buying insurance can be more mystifying than buying a new car.  There have been so many jalopies being sold in “mint condition” in the wild west of the insurance market for so long that it’s going to take some time for consumers to realize how much better the insurance products will be once the ACA consumer protections take full effect.

They will finally be getting what they are paying for – coverage that will cover essential health needs and won’t disappear when they need it most.  Don’t forget, there will be other important features included in next year’s models (in other words improvements brought about by the ACA market reforms such as the elimination of pre-existing condition discrimination and gender-based rating.)

These sticker price narratives also often ignore the fact that many people won’t be paying the full sticker price because they will be eligible for federal tax credits and/or cost-sharing protections offered by the ACA to offset the cost of insurance.   A new report from the Kaiser Family Foundation found that 48% of people now buying their own insurance would be eligible for a tax credit that would offset their premium. Among the approximately half of current enrollees who will be eligible for tax credits, the average subsidy would be $5,548 per family, which would reduce their premium for the second-lowest-cost silver premium by an average of 66%.

So the next time you hear the refrain that insurance coverage will cost more under the ACA, ask yourself more expensive than what and are the premium tax credits and cost-sharing protections being taken into account?

2 Comments


  1. Alex

    August 15, 2013 at 7:40 pm

    What a dreamer ! Come back a year from now , and let’s see what she is saying !

  2. Alan

    August 15, 2013 at 11:15 pm

    Yeah Alex, let’s come back in a year and discuss this. After all, all those folks with pre-existing conditions, it’s their fault they got sick.

Check Also

Health Care Cost Control: Banning Drug Advertising

by Virginia Suarez [vsuareznin@yahoo.com], a  UNC student in ...

Top Stories from NCPW

  • News
  • Commentary

A court really shouldn’t shirk away from making a finding about a constitutional violation just beca [...]

Jim Womack has a reputation in North Carolina for being many things, but a conservationist isn’t one [...]

Just days after a North Carolina official tapped a Robeson County elementary for a controversial cha [...]

Two groups seeking state contracts to run struggling North Carolina schools have professional ties t [...]

The post Blue Cross Blue Shield rate hike explained appeared first on NC Policy Watch. [...]

President Trump is rarely right about much, but he was correct earlier this year when he observed th [...]

20---amount in dollars of the average federal tax cuts in 2027 for households with children earning [...]

The folks running the General Assembly reached a new low this week in their efforts to dismantle our [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more