Friday, October 25, 2013

Obama Care - No Big Surprise

Well, we are in the midst of the roll-out of Obama care and I have personally been affected by the new law. I figured that my premiums would rise once the law was approved, but I have to admit that I was totally amazed at the increase in premium. I figured I would call my insurance company after October 1st to determine what I needed to do in reference to my insurance coverage moving into 2014. We started with this plan back in 2005, at that time we selected a high deductible plan to attempt to limit our monthly expense. I recall the premium being about $300 per month for our family plan with an annual deductible of $3500. This year, for the same coverage, our premium has risen to near $500 per month and our annual deductible is now $10,500.00. So here's the Obama care news for us - to keep the same level of coverage our monthly premium has risen to $1100 per month and the annual deductible is now $12,000. The increase represents an increase of over 110%. Sticker shock!

None of this comes as a surprise based on the basic review of Obama care. Insurance is a business where the carriers need to make a profit, so when they are forced to carry the costs of more covered services it's not shocking that the rates would need to increase, but to double the premium - that is just nuts!

I would try to shop my other options on the Obama care web site, but I have tried repeatedly to gain access to no avail - another big shock there. It's all rather pointless anyway since I have already seen some of the expected premiums and they are also higher. I personally have not spoken to anyone who has seen a decrease in their premium.

My advice to my clients and friends, better check with your insurance carrier or your employer and see where this is going to affect you. Better plan a change to your budget because I guarantee your costs are going up. You may want to consider this for budget planning for 2014.

Feel free to contact my office with any specific Obama Care questions as they relate to tax issues.

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