This slideshow details nine of the most staggering direct and indirect costs of Obamacare to you, taxpayers, and American businesses. While some costs are in the millions, others will run as high as $1.8 trillion over the next decade.
Costs in the Trillions •
According to the Congressional Budget Office’s (CBO) May 2013 update, the gross cost to the U.S. government of implementing Obamacare will be $1.8 trillion between 2013 and 2023. • Medicaid expansion costs alone will total in excess of $700 billion. Source: Congressional Budget Office.
A Taxpayers Dilemma • To
assist in paying for the gargantuan costs associated with Obamacare, the CBO estimates that, between 2013 and 2023, uninsured individuals will pay $45 billion in penalties while employers will fork over another $140 billion. Source: Congressional Budget Office.
Direct Costs to You 2014
2015 2016 and beyond $95/adult $325/adult $695/adult Or 1% of family income Or 2% of family income Or 2.5% of family income If you choose not to purchase individual health insurance, you will be liable for an increasingly steepening penalty at the end of the year that will rise from just a flat fee of $95 per adult, or 1% of family household income next year, to as much as $695 per adult and $347.50 per child, or 2.5% of family income in 2016 and beyond. If there’s one fail-safe here, it’s that the cost of the penalty cannot exceed the cost of what would be a state’s lowest-priced annual insurance plan. The penalty is the larger figure of the two!
If You’re Young, Expect to
Pay More Source: Images Money, Flickr. • A study conducted by consulting firm Milliman regarding the affordability of Obamacare finds that young people will see the largest increase in premiums while those aged 60-64 could actually see premium costs fall. The biggest expected premium bump is males aged 21-29 who could see premium costs rise by 56%.
All that Technology Costs a
Pretty Penny Source: Beraldo Leal, Flickr. • According to the CBO, from the moment Obamacare was passed and signed into law through the end of March 2013, the U.S. government had doled out $394 million in contracts specifically to get its cloud-computing network up and running for the state-run health exchanges.
Even the Delays Can Be
Costly Source: White House on Flickr. • Opponents of the bill may have shed a sigh of relief when, in early July, it was announced that full implementation of the employer mandate would be pushed back an additional year to Jan. 1, 2015. Unfortunately, the delay will wind up costing the government $12 billion by CBO estimates and it’ll result in 1 million current employees losing work- related health insurance coverage.
The Jobs Market is Also
Paying a Hefty Toll Source: St. Louis Federal Reserve. • In order to avoid Obamacare’s employer penalties, businesses having been cutting back hours and lessening full-time hiring. As you can see to your left, 731,000 part-time jobs have been created so far this year, accounting for a staggering 77% of all new job creation.
A Taxing TKO of Medical
Device Makers Medtronic EnRhythm Pacing System, Source: Steve Winton, Flickr. • Medical device makers like Medtronic are being hit particularly hard with a 2.3% medical device excise tax to help cover the costs of Obamacare’s Medicaid expansion. This tax covers everything from a needle to something as complex as the Medtronic pacemaker you see to your left. • Device makers have collectively paid more than $1 billion in excise taxes so far this year and could pay as much as $29 billion in taxes between now and 2023.
Insurers Shelling Out Big Bucks
• Health insurers are so intent on gaining access to an expected influx of 16 million newly insured Medicaid patients that three made hefty acquisitions totaling $14 billion since 2011: 1. Aetna is purchasing Coventry Health Care for $5.7 billion. 2. WellPoint gobbled up Amerigroup for $4.46 billion. 3. CIGNA bought out HealthSpring in 2011 for $3.8 billion. Source: Individual company press releases.
If you still have questions
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