ACA: Ups and downs

[lumberjack_jeff]

Last summer, an uninsured co-worker had a mini-stroke at a conference out of town. Our employer is a tiny non-profit with 2.5 FTE employees so there is no employer-provided coverage. Her bills were horrendous, even the portion that wasn't written off by the doctors and hospitals were prohibitively expensive. So I made it a point to help her enroll in Obamacare as soon as possible. She did, and was surprised to find that she was eligible for expanded Medicaid, effective January 1st.

Last weekend friends were visiting and the conversation turned to the ACA. They were shocked at the price difference between their previous insurance and the compliant policies available to them on the exchange. If I recall correctly, their previous coverage which had relatively low co-pays and deductibles was roughly 40% less expensive than the cheapest bronze plan on the exchange. Their additional monthly costs are about $300 IIRC. They are not eligible for tax credits. We talked about it a bit and agreed that although it's a life-or-death issue for people who can't afford or can't get insurance, but the increased cost is still meaningfully inconvenient for them.

My co-worker was hospitalized with another stroke yesterday morning. She's paralyzed on the right side and an optimistic view indicates that she's likely to be looking at several weeks of rehabilitation. I'm very worried about her, but I'm not worried about her in a financial sense and I'm confident that she'll get the care that all people deserve.

[geek tragedy]

1. How much had they cost their old insurers by filing claims

on those discontinued policies?

Insurers love to play the game of selling cheap 1-year policies, then cancellling if people start using them.

[lumberjack_jeff]

2. I'm unclear what you're asking. I'm repeating what I'm told.

What I'm saying is that it's possible to acknowledge that insurance is more expensive for some people, while understanding that it is a lifesaver for many others.

[geek tragedy]

3. question is whether this was illusory insurance, i.e. wonderful, affordable coverage

so long as you never use it, and then the insurers cancel once you get sick and need the policy to pay bills.

[lumberjack_jeff]

4. It's possible.

It's difficult to argue that point without accusing the person of stupidity.

[geek tragedy]

5. not stupidity. they play this game on millions of intelligent adults. nt

[lumberjack_jeff]

6. I thought the bigger point was interesting and important.

My friend is now in a hospital but isn't worrying about the bill because of the ACA.