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Tuesday, April 1, 2014

Does Obamacare Have Side Effects For Low Income Families? Forbes Magazine Says "Yes, Indeed"

Obamacare Side Effects

It's called the Affordable Care Act because it is supposed to provide affordable health care insurance for all Americans. But for some, that is not going to be the case. Americans understood that health care was not going to be free; someone has to pay for it. But they didn't expect it to hit low-income families so hard.

The cost was understood to be borne mostly by taxing the rich, and a typical family of four was to save $2,500 a year in premiums. But a close examination of the numbers show a different picture. According to a report published in Forbes magazine earlier this year based on calculations from the Consumer Expenditure Survey, even very low-income families making under $19,000 a year will end up paying almost $7,000 in taxes due to Obamacare between 2013 to 2022.

Low income families will be affected

The next tier up, representing the second lowest 20 percent family income level, will end up paying $7,450 during the same time period. So, the big question is, where is this "typical family of four" that Obama referred to in his promise that a typical family of four would save $2,500 a year in health care premiums?

The impact of taxes

The problem is that many of the new taxes imposed by Obamacare through 2022 will affect health services, health insurance and other goods and services that will be passed right back to low-income and middle-income families in the form of higher prices. The taxes will be imposed on health insurers, drug manufacturers and medical device manufacturers and will most likely be passed on to consumers in the form of premium increases or higher out-of-pocket spending.

To read the full report published in Forbes magazine, visit:
www.forbes.com/sites/theapothecary/2014/02/20/even-low-income-families-will-pay-thousands-of-dollars-in-obamacare-taxes/
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