Texas Small Businessman: “225% Increase Is Not Cheaper”


“Common sense. Where’s the common sense?” asked Todd, a sole proprietor of a small company who is trying to cope with all the cost increases from Obamacare.

Since the passage of the Affordable Care Act, the Texas resident has seen his premiums skyrocket, and the worse is yet to come.

“My independent health insurance that I carry for me and my family would be considered the bronze equivalent of Obamacare. My insurance rate has increased 225% in the past four years,” shared Todd. “It was running about $400 a month. Now, it is up to $900 a month [with a $4,000 deductible].”

While his carrier has not given any indication of what they will be doing, Todd is concerned that his grandfathered policy will be cancelled. “They haven’t said, ‘No, we are going to drop you, or yes, we are going to keep you.’ But my feeling is that since they’ve been raising the prices, they have no good reason to keep me on the grandfathered policy, because it’s a lot cheaper rate.”

After browsing the Internet and calling a few insurance companies, Todd realized just how more expensive an ACA-compliant plan would be.

“If I switch to an Obamacare plan for my family, it is going to be $1,500 a month with a deductible around $5,000. This is not a bronze but a silver plan. It is a PPO,” he explained, noting that this quote was from the private market.

Despite his hesitancy to go on to an exchange plan because many doctors in the area, including his, are not accepting coverage through the exchange, Todd wanted to compare plans and prices. His findings didn’t provide much hope. Some were less expensive; however, they were HMO plans, which he will not purchase. Others – like the $1,300 monthly premium with the $7,000 deductible – provided no significant savings.

With his wife’s health issues, Todd said, “It is a given that we will burn through the $5,000 deductible.”

The past premium hikes have already caused Todd and his family to make financial adjustments.

“The economy hasn’t gone anywhere, so my income is not really going up with all the costs. It’s just different cutbacks we had to make,” he stated. “My health insurance bill monthly is now more than my mortgage payment.”

The thought of having to pay more, especially $1,500 more, is unsettling to Todd, commenting “it would put us over the edge.” Even though his policy renewal isn’t until September, giving him time to search for other options, the whole ordeal has been infuriating.

“Where is my promise of cheaper health care? 225% increase is not cheaper! This is no place for the government to be. They cannot even run their own house efficiently. How are they going to manage this?,” Todd exclaimed. “Everyone has been saying it’s not going to work. Forget all this ‘let’s just work it out over the years’ – it needs to be taken care of, and it needs to be taken care of now. The more we wait, the worse it is going to get.”

Obamacare isn’t working for Todd, his family or the majority of Americans, yet those in Washington continue to ignore the problems and pleas from people like Todd to spare them from Obamacare’s unaffordability. Where is the common sense?