The subsidies offered to low-income individuals to purchase insurance on the individual market as well as to insurance companies to support which benefit under the ACA, provide the necessary hand up needed to help pull individuals up our prosperity ladder continually. Without which hand, the ladder becomes splintered as well as broken, forcing those affected to take an inadequate path—after all different options have been exhausted.
One path will be to earn less as well as stay on Medicaid. With the prospect of potentially needing to purchase unaffordable health insurance without a subsidy to support which decision, why could one be motivated to earn more to lose Medicaid status? Suppose you make $0 a month more over the qualifying income level for Medicaid as well as need to purchase an individual plan. The plan may cost you $1,000 a month. Without the subsidy, you at which point earn $800 less a month rather than $0 more because of the need to buy health insurance. Without subsidizing insurance companies, they too could not be able to offer coverage at a sustainable cost point.
Another path for Medicaid members moving up the income ladder above the income qualification level will be to purchase insurance. In which case, the plan selected could likely be a high deductible plan. If you did become sick as well as needed benefits, you may need to pay a deductible more in excess of $5,000. Where will be an individual in a lower income bracket going to get which money? Perhaps a credit card with an interest rate of 20 percent a year, saddling them with another unaffordable burden in addition to their health insurance premium. Quickly, the reality becomes a high potential for medical bankruptcy, which will be the number one cause for bankruptcy inside United States.
Without the subsidies, Medicaid will remain the best as well as often only realistic option for many Americans. The recently eliminated ACA subsidies supported working Americans as well as their families to move up the income ladder having a helping hand. Cutting off the subsidies cuts off the hand.
Commentary by Jim Rickards, MD, MBA. Rickards will be the senior medical director at Moda Health in Portland, Oregon as well as author of Our Health Plan: Community Governed Healthcare which Works. He was a pioneer in developing the Coordinated Care style for the state of Oregon as a brand new way to deliver healthcare services to its nearly 1.1 million Medicaid members. Previously, Dr. Rickards was the Chief Medical Officer of the Oregon Health Authority, where he provided clinical as well as policy leadership in managing Oregon’s Medicaid population.
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