Rick Young Insurance's Blog

Many people currently get their Michigan health insurance coverage from work, and they benefit from an implicit subsidy built into that workplace coverage that lets them spend pretax dollars through their employer to purchase health insurance.  Depending on their tax rate, that subsidy helps offset some of the premium costs, says Scott Gottlieb, a resident scholar at the American Enterprise Institute.

Under the Obama plan, however, many of these families could instead find themselves buying their health insurance on the new state-based exchanges that get started in January 2014.

• For a family of four, premiums on even one of the lower priced "silver" options could still cost more than $15,000 annually on the exchanges.
• Even those with only modest incomes could find they make too much money to be eligible for premium assistance tax credits -- the tool the Obama administration created to defray the costs of the expensive exchanges.
• Additionally, even though people aren't forced to carry health coverage on the exchanges if the cost of these policies exceeds 8 percent of their pretax income, the point may be moot: the exchanges will crowd out other low cost insurance options.

The end result of giving the middle class the runaround is that they'll be paying higher premiums for the same coverage (or broader coverage that they didn't want in the first place).

And this only hints at the eventual pervasiveness of the exchanges: because of their government support, it is almost certain that they will eventually dominate the market.

• It's widely accepted that the individual and small group insurance markets will quickly move onto the exchanges.
• This would leave two sources of health insurance: exchanges, or through large employers that continue to self-insure and offer group coverage at the workplace.
• But there's now an emerging consensus that many large employers will choose to drop workplace coverage, and instead pay the $2,000-per-employee penalty that the Obama plan levies on them.

This will funnel middle class workers into exchanges where they make too little to be able to pay the total cost of the premiums, but make too much to be eligible for assistance.

Source: Scott Gottlieb, "The Obama Health Plan Will Squeeze the Middle Class," Real Clear Markets, May 9, 2012.

For text:

http://www.realclearmarkets.com/articles/2012/05/09/the_obama_health_plan_will_squeeze_the_middle_class_99660.html

For more on Health Issues:

http://www.ncpa.org/sub/dpd/index.php?Article_Category=16

Millions of Americans with dependents, such as children and elderly parents, do not have adequate life insurance, or may have none at all. Michigan residents should contact a local Michigan life insurance agent if they’re seeking a policy that will better reflect their needs as a parent. . An agent may be able to show you some life insurance options that may be more affordable than you expected. For adults with dependents, life insurance can be an investment in financial security for the family that probably deserves of a place in your family budget.

Millions of Americans with dependents, such as children and elderly parents, do not have adequate life insurance, or may have none at all. Michigan residents should contact a local Michigan life insurance agent if they’re seeking a policy that will better reflect their needs as a parent. . An agent may be able to show you some life insurance options that may be more affordable than you expected. For adults with dependents, life insurance can be an investment in financial security for the family that probably deserves of a place in your family budget.

A report by the Michigan Primary Care Consortium says that an increase in immunization among adults could improve the Michigan economy by as much as $500 million. Is it worth it?

A PRLog January 2012 Press Release states that a 2011 survey done by the University of Toledo Urban Affairs Center indicates that business owners in Michigan are becoming more optimistic about growth opportunities in their State. Some have made investments in information technology systems and other areas of their businesses. Michigan group health insurance costs are a concern, but businesses may be able to find ways to provide more cost effective benefits packages for employees.

Michigan life insurance is an important precaution to help make sure families are taken care of should an unexpected death strike at some point in the future. As a Michigan resident with a family, taking care of yourself by doing all you can to stay strong and healthy is another important step toward ensuring you and your family have a bright future.

Your Michigan group health insurance carrier may offer coverage at affordable prices to companies of all sizes in all industries. The recent discussions surrounding a possible public option in the health insurance arena may have caused insurance companies to reevaluate their products and endeavor to offer more options to businesses.