First-time health insurance purchasers may soon slam into the wall of reality when they learn their new Obamacare plans come with several expensive out-of-pocket costs. That fact, reports Politico’s David Nather, has Obama administration officials nervous.
“The point of the Affordable Care Act is to cover people who haven’t had health insurance before,” writes Nather. “But because they’re new to health insurance, they may be in for a rude shock: It doesn’t cover everything. There are deductibles, for example–the amount of money you have to spend out of pocket before coverage kicks in–which can be very high with ‘bronze’ Obamacare plans, the cheapest kind.” Copays and coinsurance are additional costs they may not be familiar with.
Nather added, “If newly insured people think they’re getting free health care, or just think the deductibles are too high, they could be disappointed with their first experiences with Obamacare.”
As Breitbart News has reported, the nation’s level of insurance illiteracy is real and alarming. A recent study found that just 14% of individuals who have health coverage could correctly answer all four of four basic questions about health insurance, including understanding what a “deductible” and “copay” are.
Experts say individuals who have never owned a health insurance plan will soon be surprised at just how many out-of-pocket costs come with the responsibility of owning your own health insurance plan.
“People will be surprised by the cost sharing provisions and find that they have to pay more than they thought,” Alan Weil of the National Academy of State Health Policy told Politico.