Obama Health Care – How Well Will it Work in Reality?

Many people are concerned how well Obama health care will actually work in reality, although conservatives for the most part believe it will be a costly disaster.  Next month, the most important elements of the health care aca opinionlaw are slated to be phased in, and according to the Washington Post, real data returns are indicating that contrary to popular belief, those who do not have employer-sponsored coverage and who are forced to buy individual coverage will not face astronomical costs to obtain coverage.

A recent analysis of the costs Americans will face with Obama health care offers the clearest picture yet of how things will be in reality.  This analysis, presented by the Kaiser Family Foundation, examines how much Americans who will purchase coverage from exchanges will face in regards to cost for individual coverage.  Much like coverage obtained from health insurance providers in past years, the bottom line is that the cost to an individual will vary depending on a number of factors including income, age, health issues, geographical location, and other factors.  The report concludes that across the U.S. premiums will vary substantially, however overall the costs will be lower than many anticipated with Obama health care.

One part of the report stated that the Congressional Budget Office’s latest projections indicate that across the nation, the average premium for an individual who is 40 years old and who chooses the lowest cost silver plan CaliforniaObamacarewould spend approximately $320 per month for coverage.  In fact, the report goes on to say that of the eighteen areas examined in the analysis, fifteen of those would offer premiums lower than $320 per month.  It seems that maybe, just maybe, the cost of Obama health care may not be as astronomical as many initially thought.

What about competition from private insurance companies, what will the impact be on premium costs?  According to the article, supporters of Obama health care have argued that the competition among private insurance companies and exchanges will keep the costs under control.  In fact, the Kaiser report indicated in most of the regions that were studied, four or more insurers will be competing for customers, which will result in private insurance companies offering coverage at competitive rates in order to prevent customers moving into the exchanges.

Ultimately, the Kaiser report strongly supports the notion that the health coverage options under Obama health care will not place unexpected burdens on the federal Treasury, nor will it be so costly that premiums would “break the bank” for many individuals, regardless of medical issues or pre-existing conditions.  Still, not all agree with the report, saying that the data was taken from the District and 17 states, which means the information is not fully complete.  When it comes to Obama health care and its success – or lack thereof – only time will tell.

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