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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19257  
Subject: Re: Lower Health Premiums in NY Date: 7/17/2013 9:08 PM
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ResN writes,

The so-called lower premium plans only pay 70% of medical costs, which leaves the policy holder with a huge uninsured balance that he/she remains liable for. For the poor and the middle class, the deductible and co-insurance amounts are sufficient to keep them for even trying to access healthcare, which is Obama's answer to keeping down costs.

</snip>


I think you've received some bad information on what "70% of Actuarial Value" actually means.

It does not mean that the average person (or every person) will be paying 70% of a big hospital bill. It refers to the amount of medical costs covered by the insurance company for the entire pool of people on their books (probably hundreds of thousands of people.) Most people spend very little on health care and won't even reach their annual deductible ($1,500 to $2,500 for the typical Silver "70%" plan.) Someone with a $1 million hospital bill won't pay any more than the annual out-of-pocket maximum (about $7,000 for a single, $13,000 for a family.)

intercst
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