Millions of holders of so-called “Cadillac” health insurance plans are finding their costs skyrocket – even if their premiums stay the same – as insurers race to avoid or minimize the impact of the new Obamacare tax on the most generous health care plans, according to NBC News.
Why didn’t we hear this from Obama?
If you like your plan you can keep it. Unless it’s a really good plan.
The White House has been trumpeting that those whose insurance will change are those with”subpar” plans who are getting an upgrade and should be delighted. But turns out those with good plans from good companies are getting a downgrade – with reduced benefits and higher costs.
From the report by Lisa Myers:
For 75 million Americans who get their insurance through large companies, the Affordable Care Act is a mixed bag. Experts tell NBC News the new healthcare law is only slightly increasing premiums next year, but causing some companies with the most generous plans to reduce their employees’ benefits.
Sixty percent of the these major companies, which employ about 20 million American workers, say the looming excise tax is already having a “moderate” or “significant” influence on benefits decisions for 2014 and 2015. Though the tax doesn’t take effect for years, some companies are starting to make gradual changes now so as not to make dramatic changes at the last minute.
The tax will require a company to pay a 40 percent levy, starting in 2018, on the amount by which the total costs of health plans exceeds an annual limit of $10,200 for an individual and $27,500 for a family.
Take a look at the video below. And notice the nauseating statement by Council of Economic Advisors Director Jason Furman, in which a supposedly brilliant economics scholar parrots the spin of others in the White House:
There is nothing in the law that tells you you need to raise copayments or deductibles.
How disingenuous. No, the law doesn’t say to do these things. It merely forces insurers to take such measures by taxing them. Even the senior economic advisor to this White House knows full well that a major new tax forces businesses to adjust.
Disgraceful, really. They put a flack in charge of the CEA.