This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Obamacare Subsidies Allow Higher Level of Care

NEW YORK (TheStreet) -- Consumer with health care subsidies may be getting a higher level of care, says a study on the affordability of Obamacare-era health care from eHealth Insurance.

The for-profit company, citing data from the U.S. Department of Health and Human Services, says the average premium for an individual plan before subsidies were applied was $346 per month (shrinking to an average $82 per month with the subsidies) but for people buying without subsidies an individual plan was $271 per month.

Among shoppers with subsidies, "silver" plans were the most common, but for among unsubsidized shoppers "bronze" plans were the most common, the company says. Subsidized shoppers felt like they had $75 more to spend per month.

Under the Bronze plan, deductibles can be higher, so bronze buyers who were also forced to use their insurance to the hilt could pay more than $4,000 annually. The difference suggests economists will get their test of a long-held belief: that Americans would be wiser consumers of health care when faced with its actual costs.

Read More: 5 Approaches to Health That Will Hurt You

With Obamacare adding some 8 million to 10 million Americans to the rolls of those insured, half of Americans said they were spending more on health care and half reported spending less, according to Another 46% of Americans say much higher prices for health plans could be a major problem during the upcoming enrollment season, although rates have only begun to be rolled out and insurers are so far announcing a range of decreases and increases.

Although the cost of health care insurance rose annually even before Obamacare, and often at double-digit rates, 37% in the Bankrate study say they are "more negative" today about the Affordable Care Act than they were a year ago, and only 16% say they are more positive than a year ago. In the middle are 47% whose feelings apparently haven't changed one way or another.

Meanwhile, 56% of Americans are not confident the Obamacare exchanges will operate smoothly during this fall’s open enrollment period.

"This demonstrates the long shadow cast by the bungled rollout of the exchanges last year" says insurance analyst Doug Whiteman.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs