Here is a copy of small clip from The Guardian, which recently did a detailed study on health insurers and what they are doing with Obamacare.
The theory behind Obamacare was to force the youth to buy health insurance since they rarely need it as a group, and would be paying-in more than they received. Obamacare would exploit the youth to pay for those who could not afford healthcare because of pre[exisiting] conditions. The theory failed because the youth did not buy the insurance.
For tax year 2015, the penalty for not buying healthcare was 2% of your total household adjusted gross income, or $325 per adult and $162.50 per child, to a maximum of $975.
For tax year 2016, the penalty jumped to 2.5% of your total household adjusted gross income, or $695 per adult and $347.50 per child, to a maximum of $2,085.
The penalties are still less than insurance, which is often charged at $300 per month+. Even at $695, this is less than $58 per month, which is impossible to find health insurance that cheap. Because the scheme has utterly failed, insurers are abandoning Obamacare.
Let me put this in perspective. United Healthcare, Aetna and others are out, gone and down the street, running away from insuring people in the Obamacare “trial project.” The cost of this is more than any one person imagined. It is more than any amount of money discussed or approved by Congress.
Now add to this horrific cost the fact that Social Security and Medicare will be out of money in 2017. In addition, no plan or discussion has been held publicly to put forth any solutions.
Add to these problems the fact that all the revenue coming in from taxation is already “required to go somewhere by law.” By law means Congress has already put in writing what certain groups will get and locked these payments down. These prior commitments can be changed if Congress will address them.
When our government prints more money to spend outside of the required areas, they sell this paper off to other countries. So far these other countries are buying it. They have been doing this for 50 plus years. At what point will they stop buying our play money? The Answer? As soon as their confidence in us goes down. China and Japan and some of the European countries are showing signs of bailing. If they do, our government will have no choice but to make tough choices and cut spending. How emotional do you think it will get when there is a finite amount of money to spend on an infinite amount of desire? Remember our government for the past 50 years has had just the reverse: an infinite amount of money to print, and fewer places to spend it.
As we all watch the events unfold over the next year, write down your thoughts about how you want to manage your own finances differenly. Are you in control and spend less than your income? Do you have wants and needs that you chose not to fulfill so you can have surplus money? If an emergency happened today to your family costing $1,000, could you pay for that and not have any impact on your monthly bills or put it on a credit card?
If you need help learning how to be different than our government, go to www.moneymastery.com and signup for the Basic program at $4.95 a month. Use this online training software to take inventory of where you are and how to set aside surplus savings so you will not be part of perpetuating the cycle of debt and overspending our government is engaged in.
