The "good news" in ObamaCare applies only to the poor

In other words, nearly everyone who has bought insurance through the Obamacare exchanges has done so with money from the government. And the subsidies are significant — an average of $264 a month, according to HHS. The average monthly premium is $346, according to the report, so minus the $264 subsidy, the average subsidy recipient is paying a net cost of $82 a month for coverage. The government pays the rest.

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“It would appear from this data that it is the lowest income people who are most often signing up for coverage,” writes insurance industry analyst Bob Laszewski. “That explains why the average consumer subsidy is so high and the average net cost is so low.”

The problem is, for those who are not eligible for subsidies, or for those eligible only for smaller subsidies, Obamacare still presents higher premiums, higher deductibles, and narrow networks of doctors and hospitals. “The Obamacare plans are unattractive to all but the poorest who get the biggest subsidies and the lowest deductibles,” writes Laszewski. “The working class and middle class are not getting access to attractive benefits.”…

So this is one vision of Obamacare’s future: Lower-income Americans purchase insurance because they receive the biggest subsidies. Others with somewhat higher incomes are priced out of the Obamacare market. The individual mandate is meaningless. The net result is tens of millions remain without coverage. “Obamacare looks to be on its way to creating a chronically uninsured class,” says Laszewski.

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