Tuesday, June 4, 2013

Forbes.com contributor Avik Roy is lazy.

This article on the supposed raised premiums resulting from ACA, is terribly lazy.

The map of supposed ACA Bronze price premiums over eHealthInsurance prices, does not indicate source of data.  The reason why it's important to know the data source, is because neither California nor Oregon has publicly released Bronze price rate calculations; the publicly available data is based on Silver-level price bids that were submitted by insurers who were interested in participating.  At best, as KFF shows, you know what your out of pocket costs would be, after federal subsidy.

But the chart is misleading, anyway: you can always buy on the open market, regardless.  If you do not want the federal subsidy that would vastly lower your out-of-pocket costs including your monthly premium, it's your choice.

There is an important consideration, too: insurers listing under eHealthInsurance can deny coverage based on preexisting conditions -- see the smoker's screening question when you search eHealthInsurance for plans -- until January 1, 2014.  If you try to compare prices between ACA rates and those on the open market, you're not comparing apples to apples.

An aside:

Regardless of your age, you will pay the same out-of-pocket monthly premium, if you qualify under the ACA.  Young people get lower subsidies because their total premium is lower, while older adults get higher subsidies because their total premium is higher -- something I'll cover later, perhaps, because I've read some misleading articles lately.

But the most spectacular proof of laziness, is that its author, Avik Roy "called out" a bunch of spam comments.  In other words, he's not really paying attention to comments at all, and you know what they say about a closed mind.

Avik Roy's stamp of approval on spam

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