Obamacare Impacts AARP Premiums

Marketing behemoth and politically active AARP is increasing premiums and changing benefits in reaction to Obamacare. Roughly 4500 employees and dependents will be affected by this change. According to Yahoo News:

AARP adds that it's changing copayments and deductibles to avoid a 40 percent tax on high-cost health plans that takes effect in 2018 under the law. Aerospace giant Boeing also has cited the tax in asking its workers to pay more. Shifting costs to employees lowers the value of a health care plan and acts like an escape hatch from the tax.

"Plan value changes were necessary not only from a cost management standpoint but also to ensure that AARP's plans fall below the threshold for high-cost group plans under health care reform."

An "escape hatch". Wonder how many of those that put together Obamacrap anticipated this move?

My bet is no one.

Just like they did not expect employers to consider dropping group health insurance altogether, opting to pay the fine and let employees fend for themselves.

Nor did they anticipate companies dropping retiree benefits, shifting former employees on to Medicare and creating more of a financial strain on an already taxed system.

And how about those child protection laws? Requiring health insurance companies to cover dependent "children"  up to age 26 or telling health insurance companies they have to cover any child under the age of 19, regardless of how expensive their medical condition may be to treat.

How well did that work out?

AARP warned its employees that more cost-shifting could be in store. "AARP intends to make similar changes, as necessary, in the future to avoid the (health plan) tax,"

More cost shifting.

That is code for more coming out of your pay check and less coverage.

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  1. Former Actuary, FSA says:

    You are spot on! Obviously, you read PPACA and understand ObamaCare’s effects. Excellent posts.

  2. Smart post.It’s good that you can write so good. In my judgement, communication with this topic hasn’t exactly been the greatest.

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