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Tuesday, November 03, 2009

Enrollees in Insurance Exchanges Under the Affordable Health Care

These plans are based on your age and area you live in and only give basic medical coverage for you and your famliy. Each State will be in charge of administering these plans and making the decision of what coverage you will receive depending on the plan. One of the biggest problems today with private insurance plans is that every state offers and charges different rates. For example, in the state of California, based on my age of 46 our family pays just over $1,000 per month, which includes vision, and dental that cost about $100.00 per month. Now, if I take that same plan and go to Arizona with the same Insurance company which doesn't base there coverage on age but just the number of persons in your family the cost would be $340.00 including vision and dental. What we really need to do is open up the states and force real competition for coverage. That will save us 1.5 trillion dollars.



Subsidies and Payments at Different Income Levels Under H.R. 3962 The enclosed table focuses on enrollees who purchase a “reference” plan (the premiums forwhich equal the average of the three lowest-cost “basic” plans, as defined in the bill), becausefederal subsidies would be tied to that average. Such a plan would have an actuarial value of 70 percent, which represents the average share of costs for covered benefits that would be paid by the plan. Although premiums under H.R. 3962 would vary by geographic area to reflect differences in average spending for health care and would also vary by age, the table shows the approximate national average for that lower-cost reference plan—about $5,300 for singlepolicies and about $15,000 for family policies in 2016. Enrollees could purchase a moreexpensive plan or more extensive coverage for an additional, unsubsidized premium—and CBO anticipates that many enrollees would do that, so the average premiums actually paid in the exchanges would be higher (although average cost-sharing amounts could be lower than those shown in the table). The figures are presented for 2016 in order to illustrate the likely situation after the proposed changes in insurance markets were fully implemented. (A downside of that approach is that the figures are harder to compare with those observed in 2009

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