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Cons Lie!!! Obama Care Lowers Rates: Saves $190 Bill


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Lower than projected premiums under the Affordable Care Act will save the federal government $190 billion over 10 years and increase the law’s deficit reduction by 174 percent to almost $300 billion, a new analysis from the Center for American Progress has found. The report, from Topher Spiro and Jonathan Gruber, bolsters President Obama’s claims on Monday that despite the ongoing technical problems surrounding HealthCare.gov, “the product of the Affordable Care Act for people without health insurance is quality health insurance that’s affordable.”

 

http://thinkprogress.org/health/2013/10/23/2821251/obamacare-save-federal-government-190-billion/


Marketplace plans and tax credits


Under the Affordable Care Act, marketplaces that offer health plans to individuals are now open in every state. The federal government is operating marketplaces in 36 states, and 14 states and the District of Columbia are operating their own marketplaces. Marketplace plans offer five levels of coverage—catastrophic, bronze, silver, gold, and platinum—ranging from less generous to more generous.

 

Individuals with family income from one to four times the federal poverty level (about $26,000 to $94,000 for a family of four)—and who are not eligible for other qualified coverage—are eligible for tax credits to help cover the cost of a plan. The tax credit caps the amount an individual must pay for the second-lowest-cost silver plan at a certain percentage of family income, ranging from 2 percent of income at the poverty level to 9.5 percent of income at four times the poverty level.

 

Premiums for the second-lowest-cost silver plan are important because tax credits for individuals are based on the cost of that plan. If premiums for that plan are lower, then the cost of tax credits will also be lower.

 

Consider a typical individual making $30,000 a year. That individual’s premium contribution would be capped at 8.37 percent of income, or $2,512. If the premium for the second-lowest-cost silver plan is $4,700, then the tax credit would be the difference between this premium and the individual’s contribution, or $2,188. But if the premium for the second-lowest-cost silver plan turns out to be only $3,936, then the tax credit would be $1,424.

 

We estimate that a 16 percent reduction in premiums will lower the total cost of tax credits by about 21 percent. As the example above illustrates, the percentage reduction in the tax credit will often be much greater than the percentage reduction in the premium. Because the amount that individuals pay is fixed at a percentage of income, a reduction in premiums will result in a proportionally larger reduction in government spending.

 

$190 billion in context


When it was enacted, the Affordable Care Act was already fully paid for and projected to lower the federal budget deficit. In its most recent estimate, CBO projected that the law would lower the deficit by $109 billion over the next 10 years. Our estimated $190 billion in savings will increase that deficit reduction by 174 percent to almost $300 billion.

Recent long-term debt-reduction plans have proposed substantial health care savings in combination with additional tax revenue. The Simpson-Bowles commission, for example, proposed $487 billion in health care savings. And in the last “grand bargain” offer that President Barack Obama made to House Speaker John Boehner (R-OH) in December 2012, he proposed about $400 billion in health care savings.

 

Our estimated $190 billion in savings represents a sizable share of these proposals’ health care savings—about 40 percent of the Simpson-Bowles plan’s savings and almost half of the president’s proposed savings.

 

http://www.americanprogress.org/issues/healthcare/report/2013/10/23/77537/the-affordable-care-acts-lower-than-projected-premiums-will-save-190-billion/

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This is going to be a good thing for our country, and the nutjobs know it. Hell, Fox News can't even find actual ACA "victims". Almost every one they put on either has no impact or will have better coverage for the dollar. If it really was a bad thing, it would be so easy to find these "victims".

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The first sentence in your link: "Lower than projected premiums under the Affordable Care Act will save the federal government $190 billion over 10 years" is absurd.

 

How do premiums paid by consumers lower the costs to the federal government?

 

Then the next claim:

In fact, the emergence of new insurers and increased competition within the law’s marketplaces has lowered premiums below Congressional Budget Office (CBO) projections from March of 2012. While the nonpartisan office estimated that the average second-lowest-cost individual silver plan premiums would cost $4,700 in 2014, the actual average premium turned out to be $3,936 or “16 percent lower than projected.”

is meaningless because the even if this were true, that "16 percent lower than projected" is still an increase over what would have been paid if we had done nothing.

 

Hey, we expected your premiums to increase by 75%, but it only went up by 59% so we came in 16% less than expected!

Success!!!

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Lower than projected premiums under the Affordable Care Act will save the federal government $190 billion over 10 years and increase the law’s deficit reduction by 174 percent to almost $300 billion, a new analysis from the Center for American Progress has found. The report, from Topher Spiro and Jonathan Gruber, bolsters President Obama’s claims on Monday that despite the ongoing technical problems surrounding HealthCare.gov, “the product of the Affordable Care Act for people without health insurance is quality health insurance that’s affordable.”

 

http://thinkprogress.org/health/2013/10/23/2821251/obamacare-save-federal-government-190-billion/

 

Marketplace plans and tax credits

 

Under the Affordable Care Act, marketplaces that offer health plans to individuals are now open in every state. The federal government is operating marketplaces in 36 states, and 14 states and the District of Columbia are operating their own marketplaces. Marketplace plans offer five levels of coverage—catastrophic, bronze, silver, gold, and platinum—ranging from less generous to more generous.

 

Individuals with family income from one to four times the federal poverty level (about $26,000 to $94,000 for a family of four)—and who are not eligible for other qualified coverage—are eligible for tax credits to help cover the cost of a plan. The tax credit caps the amount an individual must pay for the second-lowest-cost silver plan at a certain percentage of family income, ranging from 2 percent of income at the poverty level to 9.5 percent of income at four times the poverty level.

 

Premiums for the second-lowest-cost silver plan are important because tax credits for individuals are based on the cost of that plan. If premiums for that plan are lower, then the cost of tax credits will also be lower.

 

Consider a typical individual making $30,000 a year. That individual’s premium contribution would be capped at 8.37 percent of income, or $2,512. If the premium for the second-lowest-cost silver plan is $4,700, then the tax credit would be the difference between this premium and the individual’s contribution, or $2,188. But if the premium for the second-lowest-cost silver plan turns out to be only $3,936, then the tax credit would be $1,424.

 

We estimate that a 16 percent reduction in premiums will lower the total cost of tax credits by about 21 percent. As the example above illustrates, the percentage reduction in the tax credit will often be much greater than the percentage reduction in the premium. Because the amount that individuals pay is fixed at a percentage of income, a reduction in premiums will result in a proportionally larger reduction in government spending.

 

$190 billion in context

 

When it was enacted, the Affordable Care Act was already fully paid for and projected to lower the federal budget deficit. In its most recent estimate, CBO projected that the law would lower the deficit by $109 billion over the next 10 years. Our estimated $190 billion in savings will increase that deficit reduction by 174 percent to almost $300 billion.

Recent long-term debt-reduction plans have proposed substantial health care savings in combination with additional tax revenue. The Simpson-Bowles commission, for example, proposed $487 billion in health care savings. And in the last “grand bargain” offer that President Barack Obama made to House Speaker John Boehner (R-OH) in December 2012, he proposed about $400 billion in health care savings.

 

Our estimated $190 billion in savings represents a sizable share of these proposals’ health care savings—about 40 percent of the Simpson-Bowles plan’s savings and almost half of the president’s proposed savings.

 

http://www.americanprogress.org/issues/healthcare/report/2013/10/23/77537/the-affordable-care-acts-lower-than-projected-premiums-will-save-190-billion/

You are full of it. My insurance would go up by $400 a month which is $4800 a year. That is a $7300 difference the wrong way from what Obama Promised. The CBO also said that it will cost $1.76 trillion for 10 years. The delays of implementation is making it worse..

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"Cons Lie!!! Obama Care Lowers Rates: Saves $190 Bill"

 

hey shi+stain

 

how many insurance companies in NH closed because of the unaffordablecareTAX ?

(ans,all but one)

 

why did they all close ?

 

how are those people going to keep their insurance ?

 

 

 

it would be so easy to find these "victims".

the same reason no one knows how you will die in 2014

 

you pathetic dumbazz...

 

the unaffordablecareTAX hasnt started yet

 

loser

 

 

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shignorant you and your sources are wrong. the only way people will pay less under sambocare is by getting less (less coverage, higher out of pocket expenses). apples to apples no one will get as good or better coverage for the same or less money under sambocare. that fact has been proven

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