Ryan: Number Who Will Lose Health Coverage Under Repeal Is 'Up To People'

[progree]

24. Bullshit -- there is a mandate in the AHCA -- you pay a 30% premium surcharge for a year

Last edited Sun Mar 12, 2017, 02:50 PM - Edit history (1)

Similary the ACA -- you pay a fine, but otherwise there is no other sanction. So either they both have mandates (because you are financially penalized for not having insurance), or they both don't. I just hate the double-talk:

"There's no mandate in our plan, you just pay a fine" (same as Obamacare actually but they call that a mandate, because, well, that's politics).

Obamacare vs. the Republican plan — for those thinking of skipping health insurance (confirms that under AHCA, insurance companies can charge 30% extra premium for 12 months) MarketWatch, 3/8/17

The current penalty for not having insurance — either through Obamacare or an employer — is $695 per adult and $347.50 per child, or 2.5% of total household adjusted gross income, whatever’s larger.

For the median-earning household, that 2.5% fine is about $1,375. It is prorated, however. That is, if you’re uncovered for half the year, the fine is half.

Under the House Republican plan, the insurer is allowed to charge a 30% surcharge, for 12 months, on those who signed up without demonstrating continuous coverage beforehand. The average premium of a so-called bronze plan under Obamacare runs to about $350 per month, or $4,200 a year. So that’s a $1,260 surcharge to join late in the year before, say, a heart procedure.

Here’s the apples-to-apples of skipping 10 months insurance (and for argument sake, we’re skipping the grace periods in both). Under Obamacare, it’s $1,845 (10 months of fine, two months of insurance) and under the Republican plan, it’s $1,960.

But skipping, say, 22 months of coverage, is where the Republican plan pays off — $3,220 in fines plus cost of coverage for Obamacare, vs. $1,960 under the GOP plan. (Depends on your definition of "pays off", but that's a whole 'nuther 3 paragraphs -Progree)

More: http://www.marketwatch.com/story/the-economics-of-skipping-health-care-insurance-under-both-obamacare-and-the-republican-plan-2017-03-07

It says "the House Republican plan would deter hopping on and off insurance, since each time, the insurer gets a big one-time payment".

Ummm. On the other hand, Trumpcare is an incentive to go several years without coverage, since there is no extra penalty for being uncovered for a long time. Whereas the ACA, the penalty is proportional to the amount of time you are uncovered, and you pay it each year. I think the ACA is a more effective incentive that way.