Obamacare Is Going To Hit Self-Employed Americans Hard

obamacare-doctor-dmv

A reader who runs his own business sent this to me today in response to my interview posted yesterday with Blue Cross Blue Shield spokesman Rod St. Aubyn who said BCBS is estimating a 75% – 100% increase in the price of individual health insurance policies (not to mention a 15% increase in the price of grou policies).

The reader points out that he and his wife may be better off paying the penalty for not having insurance (details on that here) than buying insurance at bloated Obamacare prices.

If ObamaCare doubles premiums for young individual insurance buyers, those of us who are self-employed and carry catastrophic insurance plans are likely to be better off without any insurance coverage in 2014.

Right now, I have a deductible of $5,000 and pay roughly $120 per month. The thought is that at my age and lifestyle I need only “cancer coverage” because our income can handle a moderate injury or sickness (not that we’d like the expense).

The penalties in 2014 for families without coverage meeting the mandate is 1% of taxable income. If premiums double, my wife and I would need to make $240,000 in taxable income before carrying insurance would make sense. Since insurance can no longer be denied for preexisting conditions, we might be better purchasing insurance after serious illness strikes.

I want to carry appropriate coverage that a responsible person should have rather than relying on the faults of this disastrous bill. But given that I’ll pay steeply for the future cost of the bill, it’s a hard case to not take advantage of the benefits that it offers. It’s pure stupidity.

My wife and I had this same conversation. We’re self-employed, and buy a high deductible plan for our family. Thanks to Obamacare, by 2014 not only will our current insurance plan likely be eliminated because it no longer meets the standards set out by Obamacare, but the plans we will be able to purchase will likely be twice the cost of what we’re paying now.

That’s more than a little scary for us.

I still can’t get over the irony of the “Affordable Care Act” making health insurance far less affordable than it was prior to the law’s passage.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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