J. Peder Zane’s comments on Obamacare were interesting but incomplete in his Dec. 18 column “Obamacare made me a taker.” The interesting and somewhat confusing part is all the math.
Because of Obamacare, Zane’s insurance costs increased 2.5 times from $5,280 to $13,200 annually for unsubsidized market insurance. In addition he was put at risk for another $12,400 annually with an increased deductible. That is the sum of the misnamed Affordable Care Act: materially higher insurance costs many individuals may see when purchasing a product on the open market, or thru an exchange where the individual is unsubsidized.
Because Zane now qualifies for a subsidy, his health insurance will cost $15,544 of which he will pay $5,424, and the government will subsidize the balance of $10,120 annually. Additionally the government will reduce and subsidize his risk (deductible) by $16,400 per year.
The “government will subsidize” means that the taxpayers will pay for that insurance and be exposed to the additional risk, which to his credit he bemoans. Zane also points out the insidious disincentives in this act – to work harder and to increase his income results in a penalty through the loss of the subsidy. The entitlement mantra: Work less get more.