“We want to save families form going bankrupt… We went to keep prices down – delay is not an option.” – HHS Secretary Kathleen Sebelius during Senate Finance Committee hearing.
We have been told repeatedly that Obamacare is needed to “save” Americans from ruinous medical bills that are causing bankruptcy in our nation. But, what happens when the new law destroys the only safeguard – catastrophic coverage – that your family can afford? Ask Indiana-resident Amy, who is wondering how she is going to protect her family now that their policy has been cancelled.
“I received a letter from our healthcare provider, United Security, with the following headline in bold: ‘Notice of Cancelation of your Major Medical Insurance Policy effective later this year, 12/31/2013 11:59 pm CST.’ In the body of the letter, it was explained that ‘due to the medical loss ratio restrictions of the Affordable Care Act and the administrative requirements necessary to continue operating our Major Medical Insurance in Indiana’ our health insurance was being canceled. This is a catastrophic care plan and just about the only one we can afford at this time because my husband lost his job three years ago due to outsourcing, became ill, and is unable to find employment. He refuses to apply for disability,” explained Amy.
For families like Amy’s whose budget doesn’t offer much room, catastrophic plans were ideal. They shielded her family from those financial perils proclaimed by the Administration, yet the government and its role of knowing what’s best deemed them insufficient for most Americans. Amy is now left with the task of finding a policy that fits her budget.
“We received a number to call from United Security, saying we can easily switch you over into another plan. I’ve talked to two different people. [Per one gentleman], the cheapest plan we could get with Anthem Blue Cross was going to cost us $1,380 a month. He did not tell me what the deductible was on the plan. Prior to that, I ran into a woman at Sam’s Club, an insurance agent. She took my name and information; she called me. She said the cheapest we could get was a $2,500 higher deductible for $1,560 a month – that was a bronze plan,” she shared.
The process has been frustrating for Amy, who had a perfectly good plan that worked for her family. Due to Obamacare’s costly nature, she and her family will most likely make the decision to go without. “At this point, I think the best thing we can do is just pay the fine. It is going to be a lot less.”
She is not alone in her decision. According to a Princeton Survey nearly 4 in 10 would opt to pay the fine.
“According to a new poll of 1,013 adults by Princeton Survey Research Associates, 38% say they would pay the mandate tax and forgo buying health insurance. That finding is higher than the 28% who are uninsured who recently told Gallup they’d pay the tax instead of buying coverage.”
If those surveyed are in a similar situation like Amy’s, cost is definitely playing a factor as families are forced into new policies they can’t afford.
“The whole thing is such a mess. I’m disgusted,” Amy exclaimed.
As for financial ruin, forget about medical bills. The catastrophe of Obamacare seems to be bankrupting Americans.