Friday, December 6, 2013

Unintended Consequences

Amid all the teeth-gnashing over the failure of the Obamacare website, information is coming out from those (un)lucky enough to have succeeded there, namely big premium increases. Really big premium increases. And just in case you decided to avoid the whole thing, think about this coming April when the IRS will want to know if your insurance is up to the presidential standards. If your answer is What Insurance, the IRS will hit you with a fat penalty.

So everyone is now required to spend large sums of money that they hadn't budgeted. What's this going to do to the rest of the economy? Instead of having the promised $2500 to spend, the average family is going to have to find an extra $7500 with which to buy insurance. On top of that, if you do need medical help, the deductibles are noticeably higher as well.

Cancel the vacation, put off buying the new car, plan on buying a used on instead, and try to make everything else last as long as possible. The Millennials will grow up with a depression-era outlook on life for sure. Obamacare looks like it will be the equivalent of giving everyone a 10% pay cut.

1 comment:

Brad K. said...

I suppose those looking ahead to April might check into part time work at WalMart or McDonalds, just to get their names on an exempted health plan.

Yippee. Legal almost-insurance.