Tags: health | retail sales | premium | insurance

Obamacare Could Crush the Economy Next Year

By    |   Monday, 18 Nov 2013 07:15 AM

You know me as a financial expert, and I typically stay in that realm. Honestly, I tend to say very little about politics (because I'm not a pro in that area) except for when it comes to political opinions that affect our economy.

Well, last week I was amazed when I got my "new" health insurance premium, which will start in January, from my health insurer.

I'm self-employed so I expect to pay a bit more than those who are a part of a big group policy. However, when I saw that my family healthcare premium, which carries a $5,000 deductible, was going up from the $600s to the $1,600s EACH MONTH, I about passed out.

So I mentioned this on Facebook, basically wondering about this "Affordable" Care Act, better known as Obamacare.

When I mentioned the $1,000 hike per month (an extra $12,000 per year that I'd be paying) with no medical changes, etc., I got quite an array of posts.

One lady commented that her premium was $500 higher than her mortgage payment. Another friend of mine wrote in and said that his was going up so much that he was likely going to lose his insurance altogether.

Meanwhile, an Aussie follower chimed in and said that they pay about half of what I presently pay for my family. So they're paying in the $300s why I'm on my way from the $600s to the $1,600s. Keep in mind, I'm only 44. I have the best form of life insurance available because of the extensive medical screenings that I've been through. And my wife and kids are healthy too. So this is not a risk issue to the insurer.

Now, I've said all of that to say this. If you think rising gasoline and food prices are a weight on the economy, wait until you see people getting hit with $500 to $1,000 PER MONTH increases in their health insurance premiums for next year.

That could kill any non-essential purchases. It would simply crush retail sales. And remember, it's the people who've formerly had money to spend that were able to buy. But if costs go up by this much, it's like having a nice car payment or an inexpensive home payment, except you don't get to own the car or house.

So if life gets that much more expensive for much of America (or if it comes anywhere close to that), it will slam retail sales, particularly anything that is a non-essential.

After all, if your health insurance even went up by $200 to $300 per month, I bet you're going to think twice about eating out as much or getting that Starbucks coffee.

If the consumer gets hit hard, and there's a good chance that happens if Obamacare doesn't get reversed, then we could see the U.S. economy take a big hit in mid- to late 2014 as these new costs take hold.

That would send the economy and stocks south and unemployment higher. So, if I were you, I'd begin to trim the fat and live off of less of your income just in case your healthcare premiums rise too.

God bless!

About the Author: Sean Hyman
Sean Hyman is a member of the Moneynews Financial Brain Trust.
Click Here to read more of his articles. He is also the editor of Ultimate Wealth Report. Discover more by Clicking Here Now.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
SeanHyman
Last week I was amazed when I got my "new" health insurance premium, which will start in January, from my health insurer. When I saw that my family healthcare premium, which carries a $5,000 deductible, was going up from the $600s to the $1,600s EACH MONTH, I about passed out.
health,retail sales,premium,insurance
567
2013-15-18
Monday, 18 Nov 2013 07:15 AM
Newsmax Inc.
 

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.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved