The new Kaiser Family Foundation study looking at Obamacare’s likely impact on health insurance costs is getting a lot of attention, and rightly so. As Bloomberg News puts it, this is the “the broadest look yet at what consumers will pay for health insurance when the Affordable Care Act takes full effect next year,” and its top line finding is that insurance will be “affordable.” In other words, no “rate shock.”
Indeed, if you dig into the report, you’ll find more information that really bodes well for Obamacare’s implementation.
Specifically, the prices of the so-called “bronze” plans turn out to be very affordable, and even more so when you add in the law’s subsidies — which is very good news for those who worried people won’t sign on to the exchanges.
The “bronze” plans represent the least generous level of coverage, and health reformers believe they represent a kind of escape valve for releasing anger over the individual mandate. The idea is those who are least likely to sign on to the exchanges — single youngish people who don’t have a lot of money — are also the most likely to sign on to “bronze” plans. If those are affordable more will sign up.