Obamacare for 2026

Obama care has been around for 15 years and it is time for an update. First off in order to pass the law it was deemed necessary to keep the first ten-year cost below one trillion dollars and they succeeded by coming in at $940 billion. What most people are not aware of that this was accomplished by collecting premiums starting in 2010 but withholding most benefits until 2014. Thus, the ten-year cost was spread over ten years but the coverage over six. Second most people who qualified for free coverage signed up but many young people who were faced with small premiums chose not to sign up. This prompted the government to instigate the individual mandate which was a penalty for not having the insurance. In 2019 the Trump administration eliminated the mandate. Many young people chose not to sign up deciding instead to just use emergency rooms much like illegal migrants were doing. As the cost for Obamacare rose more and more people, in particular, young people started dropping out. This creates, what is called in the insurance business, a death spiral. As more people drop out the cost for the remaining group goes higher which causes more to drop out and so on. Third. This year the cost for the Silver plan under Obamacare will rise 18% but the real cost is in the annual deductible. For those living below the poverty level the monthly cost is zero and the average annual deductible is $700. Most of these people will keep their coverage. The poverty level for 2026 is $15,650 per family. For each additional person the level rises by $5,500. This means a family of four can get free insurance with incomes up to $25,000. For those families earning between $23,475 and $31,300 their annual deductible increased to $3,600. The income limits still allow $5,500 per child. Thus, a family of four earning over $42,300 will pay $500 per month and have a $5,000 annual deductible. That means the annual cost would be $11,000 before insurance kicks in. Many families will drop out. Interesting enough, 5 million who are eligible for free care fail to sign up mostly because they are now aware or find it to much trouble.