Even The Cheapest Obamacare Plans Are “Unaffordable” In 94% Of American Cities, New Study Finds

Saturday, September 30, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Sep 29, 2017

We’ve frequently warned that Obamacare is locked in an inescapable death spiral that will result in its inevitable failure. The problem is that the folks who make too much to qualify for subsidies (currently defined as roughly $80,000 for a family of 3) are increasingly being priced out of the market for individual insurance by Obamacare’s 30%+ price hikes that consistently come year after year. Meanwhile, those “rich” families making $80,000 a year are the ones expected to overpay for their health insurance so that a portion of their premiums can be “spread around a little bit” (as Obama likes to say) to subsidize the premiums of others. Of course, it’s easy to see the circularity here as higher premiums equals less “full-paying” customers and less subsidies equals higher premiums…until the whole system collapses.

Luckily you no longer have to take our word for it as eHealth.com has just published a new study that finds that, even by Obamacare’s own definition of “affordability”, residents in 47 out of 50 cities surveyed can’t afford the cheapest Obamacare plan.

According to a study released today by eHealth, Inc., which operates eHealth.com, the average family of three earning slightly too much to qualify for subsidies in 2018 would need to increase its household income by nearly $29,000 before health insurance became “affordable” based on Obamacare criteria.

The Affordable Care Act (ACA or Obamacare) considers health insurance to be “unaffordable” when annual premiums for the lowest-priced plan in a market cost more than 8.16% of a household’s modified adjusted gross income (or MAGI). When health insurance is unaffordable by this standard, individuals and families may qualify for an exemption from Obamacare’s individual mandate to buy health insurance.

“Coverage under the Affordable Care Act is becoming seriously unaffordable for many families, even by Obamacare’s own rules,” said eHealth CEO Scott Flanders. “I find it hard to believe that the framers of the law ever intended the cost of family health insurance to rival that of a second mortgage. Without the introduction of lower-cost options into the market or expanded government subsidies, many middle-income Americans are in danger of being priced out of the health insurance market entirely.”

The Rest…HERE

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