Obamacare Fallout: Deductibles could cause Havoc on the Finances of Many Families

As a key enrollment deadline hits Monday, many people without health insurance have been sizing up policies on the new government health care marketplaces and making what seems like a logical choice: They’re picking the cheapest one. 

Increasingly, specialists in health insurance are becoming concerned that many of these first-time buyers will be in for a surprise when they get medical care next year and discover that, because of high deductibles, they will be on the hook for most of the initial cost.

“I am so deeply clueless about all of this,” said Adrienne

Matzen, who says she’s looking for a health plan based

on the monthly premium because she has limited income.

For most Americans, Monday is the deadline to sign up for health insurance policies that take effect Jan. 1. The prospect of sticker shock after the start of the year is seen as a looming problem for the federal health care system. 

The program has been plagued by trouble since the new marketplaces were launched in the states in October, and some problems are expected to continue despite a series of adjustments and extensions put in place by the Obama administration. 

For those without insurance — about 15 percent of the population— ‘‘it’s important to understand the total cost of ownership of a plan,’’ said Matt Eyles, a vice president of Avalere Health, a market analysis firm. ‘‘You just don’t want to look only at the premium.’’ 

Counselors who have been helping people choose policies say many are focused only on the upfront cost, not what the insurance companies agree to pay.

[...] 

Hospitals are worried that those who rack up uncovered medical bills next year will not be able to pay them, perpetuating one of the problems the new health care system is supposed to solve. 

The new federal and state health insurance exchanges offer policies ranked as bronze, silver, gold, and platinum. The bronze options have the lowest monthly premiums but high deductibles — the amount the policyholder must pay before the insurer picks up any of the cost of medical care. 

On average, a bronze plan’s deductible is more than $4,300, according to an analysis of marketplace plans in 19 states by Avalere Health. A consumer who upgrades to a silver plan could reduce the deductible to about $2,500. A top-of-the-line platinum plan has the lowest average deductible: $167.

Read the full story HERE.

If you like what you see, please "Like" us on Facebook either here or here.
Please follow us on Twitter here.