Friday, November 15, 2013

Obamacare vs. The Insurance Companies

Who Will Win

Barack Obama

Insurance companies dropped millions of customers due to President Barack Obama's health care plan Obamacare. The president had previously informed the American people that each person would be able to keep their insurance if they so desired. Turned out that was not the case and many are angry over being dropped.

Others who have tried to sign up for health insurance under Obamacare, reported their premiums went from $50 to over $500 per month. They are no longer being charged by health history. What appears to be happening is people are being charged based on income, rather than actual needs. I heard one report of a couple going from $700 to $2,200 per month under Obamacare.

Just because an individual's income reflects a certain figure, does not mean they do not have monthly debts that account for most of that sum. To have their insurance rates skyrocket can lead to bankruptcy. For example, say one earns $5,000 per month and one's bills and other cost of living expenses amount to $4,500 per month. Then one gets hit with a new insurance premium under Obamacare for $700 per month, you will run a monthly deficit.

Regardless of income, people should face lower premiums based on their medical histories. The government faces a challenge in getting the middle class to pay for the healthcare of the poor. In short, people should have been able to keep their insurance plans they were happy with, as was promised. Insurance companies are not going to want to lower their rates to accommodate Obamacare, as it will mean decreased corporate revenues. The president is going to have a real fight on his hands in this regard.