Get ready middle class America, Obamcare is about to get a whole lot worse for your wallet. According to a new study by the Brookings Institution, detailed hereby Byron York, families making $21,000-$40,000 per year will see their wealth redistributed to pay for Obamacare and in return will see their income reduced.
Obamacare will increase the income of Americans in the lowest 20 percent of the income scale, and especially in the lowest ten percent. But all other income groups — even people who make very modest incomes in the $25,000 to $30,000 range, as well as all income brackets above that — will experience a decline in income because of Obamacare.
In other words, Obamacare is going to cost some of the very people it was designed to help.
Obamacare will reduce, by an estimated 0.9 percent, the incomes of working-age Americans in the next-lowest income bracket, households making between about $21,000 and $40,000 a year. And in the next income group, households making between about $40,000 and $65,000 a year — Obamacare will reduce their income, too, also by 0.9 percent.
This reduction in income comes on top of tripled premiums for middle class families and slew of new Obamacare taxes.
One in five Obamacare “enrollees” could have their plans cancelled for failure to pay their first month’s premium. That figure is based on reports from health insurers themselves, some of whom have made 10 attempts to collect the first payment.
The exact percentage of those who pay (the actual definition of enrollment) varies among insurers according to a report Thursday by CNN Money. Medical Mutual of Ohio put the figure at 88 percent while CoOportunity Health put it lower at 82 percent. CoOportunity CEO Cliff Gold tells CNN “We figure either those people had a change of heart or thought it was too expensive.” WellPoint would only say a majority but not a “vast majority” had paid their first premium. CNN estimates the overall percentage of insurers it polled at one in five.
Earlier this month health insurance expert Bob Laszewski estimated, based on his contacts in the industry, that 10-20 percent of Obamacare enrollments would be dropped for failure to pay. CNN’s report suggests the actual figure will be closer to the upper end of Laszewski’s estimate.
The Obama administration has reported that, as of December 28th, 2.1 million people had enrolled in private insurance plans. However the administration counts anyone who selected a plan on a health exchange website as enrolled whether or not they have paid a premium.
The high rate of cancellations will certainly have a political impact in not an immediate policy impact. If the 20 percent figure highlighted by CNN is accurate, roughly 400,000 people the administration has already counted as enrolled under Obamacare will receive cancellation letters. That’s considerably more than the total number who enrolled in October and November combined. It would also mean the total number of people enrolled did not pass 3 million as HHS claimed last week.
Those individuals who are canceled for non-payment will need to start over in order to get insurance before the enrollment period ends in March. Presumably, those who do so will be counted as enrolled a second time unless HHS is careful to exclude duplicates or simply revises its earlier numbers downward to account for cancellations. It’s just one more asterisk to add to the list of already dubious numbers coming from the administration.