Tags: Healthcare Reform | premiums | deductibles | obamacare

Consumers Face Higher Deductibles Under Obamacare Plans

Image: Consumers Face Higher Deductibles Under Obamacare Plans

Monday, 09 Dec 2013 09:44 AM

By Courtney Coren

Now that more individuals are able to enroll in plans through the improved Obamacare website, they are discovering that the lower insurance premiums mean more out-of-pocket costs that many may not be able to afford.

The deductibles are averaging $5,081 per year for the minimal coverage Bronze plans on the HealthCare.gov website in 34 of the 36 states on the federal exchange. That's 42 percent higher than the $3,589 deductible individual plans in 2013. For a couple or a family, deductibles may be as high as $12,700, The Wall Street Journal reports.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

In comparison, the average deductible is $1,135 for those who are still able to take advantage of health insurance plans through their employer.

"Deductibles for many plans in the insurance exchanges are pretty high," Stan Dorn, health policy expert at the Urban Institute, told The New York Times. "These plans are more generous than what's prevalent in the current individual insurance market, but significantly less generous than most employer-sponsored insurance."

A study done at University of Chicago research group NORC, found that 65 percent of group plans offered by employers would fall under the gold or platinum category offered by Obamacare. However, 84 percent of insurance plans purchased by individuals provide coverage equal to the bronze level of Obamacare or less.

The new health care law does provide deductible "cost-sharing" subsidies for individuals who earn up to 2.5 times the poverty level, which is about $28,725, for those who purchase one of the "silver" plans, but there is no "cost sharing" available for bronze plans.

"Consumers are giving up cost-sharing reductions of enormous value if they enroll in a bronze plan because it has the lowest premium," Dorn said, adding that the government hasn't really educated Americans on this difference in the two plans.

Plans on the healthcare exchange are categorized as bronze, silver, gold and platinum, with the idea that the coverage will be more generous with each level, but premiums increase as the plan benefits increase.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

Consumers will have to decide if they want to take advantage of the lower premiums offered by the bronze plans or pay more but receive a subsidy if they qualify under the higher level plans.

Related Stories:
  • Millions Facing Huge Costs, Lost Coverage Thanks to Obamacare Upheaval

  • Divorce Cheaper Option for Couples Facing Huge Obamacare Premiums

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Army Officer: Bergdahl Charged With Desertion, WH Wants It Kept Quiet

Monday, 26 Jan 2015 23:06 PM

Army Sgt. Bowe Bergdahl has been charged with desertion, but the White House is trying to keep the story under wraps, a  . . .

Snowstorm Threatens to Paralyze Northeast for Days

Monday, 26 Jan 2015 18:12 PM

Tens of millions of people along the Philadelphia-to-Boston corridor rushed to get home and settle in Monday as a fearso . . .

Sen. Ayotte: Trading Terrorists for Citizens Sets Bad Precedent

Monday, 26 Jan 2015 22:23 PM

Sen. Kelly Ayotte told Fox News she is glad Rep. Duncan Hunter is asking questions about the timing of the release of an . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved