As Americans get ready to elect a new leader, a decision that will be shaped at least partially by their perception of the current president's achievements, President Obama wants people to know that his signature domestic policy, the Affordable Care Act, is better than they have been led to believe.
A new study released by the Centers for Medicare and Medicaid Services says that Obamacare health plans are not nearly as expensive to individuals and families as previous studies have reported because of the subsidies that most Obamacare policyholders qualify for.
The ACA offers discounted plans based on income in two distinct ways. The first, premium tax credits, are available to individuals and families with incomes up to 400 percent of the federal poverty level. There is a second cost-sharing subsidy for those with incomes up to 250 percent of the poverty level.
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Over 90 percent of ACA policyholders receive the tax credits and 60 percent benefit from the cost-sharing subsidies.
Thus, while the sticker price for the average ACA health plan may be more than $3,000, as a study by the Kaiser Family Foundation reported late last year, a policyholder pays an average of only $850 toward their deductible, according to the CMS study.
There are also a range of preventative services that are free to individuals and families with ACA plans, including annual physicals, cancer screenings and vaccines. Those costs are covered entirely by the insurer, regardless of whether the policyholder has yet hit the deductible.
"This report shows that Marketplace plans are providing consumers with real financial protections and access to important health services," Kevin Counihan, CEO of Healthcare.gov, said in a statement. "As with premiums, Marketplace deductibles and out-of-pocket costs in Marketplace plans are often lower than advertised thanks to the financial help available."
The cost-sharing subsidies, however, are threatened by a lawsuit launched by Congressional Republicans against the administration. In the suit, the lawmakers argued that the administration had authorized the expenditures without approval from Congress, an argument that a federal judge agreed with in a May decision that the administration is currently appealing.
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