Posted on 10/26/2025 9:07:22 PM PDT by SeekAndFind
The government shutdown has focused debate on the vast sum ($136 billion in 2025, as projected by the Congressional Budget Office) that the federal government spends to annually subsidize continually skyrocketing Obamacare health insurance premiums. The Wall Street Journal reports that regardless of how that fiscal tug-of- war turns out, health insurance premiums paid by Americans are expected to rise another 8% or 9% next year.
The mega-health insurers are leading the charge for more subsidies because this money lands right in their pockets. Their profits and stock values have been soaring while the rest of us struggle to pay the rising tab.
One reason health care costs are rising at two to three times the cost of everything else is that the entire insurance market is dysfunctional. Most Americans pay high monthly premiums (or the government pays for them) for coverage they often don't use.
In 2024, 11.7 million people, more than one-third of those covered by Obamacare, had no medical claims. They, or taxpayers, paid a lot in premiums -- for nothing.
But the whole idea of insurance is to protect your family from major expenses -- not minor ones. That's why we have fire insurance on our homes -- to protect against the risk of the total loss of your property.
We need a system much more sensible and less costly for patients and taxpayers. We should be encouraging insurance plans with low premiums that cover major "catastrophic" medical expenses but leave smaller expenses -- like checkups or minor surgery -- to be paid by policyholders directly.
Such policies -- known as catastrophic health insurance plans -- have been available for several decades. Most of us would be better off financially if we signed up for these plans. With low premiums and coverage for major medical expenses, they are a win-win for families.
Even as regulated by Obamacare, this coverage charges premiums that are only about half the amount of other Obamacare plans. For example, Forbes recently analyzed the premiums of "77 catastrophic health plans nationwide." The average premium for a 50-year old member is $443 per month, or $5,316 per year, compared to almost $10,000 for the average Obamacare plan, according to Paragon Health Institute calculations.
This leaves a plan member with about $4,600 in saved premiums to pay for medical expenses subject to the plan's deductible ($9,450 per person or $18,900 for a family) -- or to productively invest or spend.
The Democrats and health insurers ridicule these plans as "junk health insurance." Wrong. Forbes notes that these plans provide comprehensive coverage for major medical expenses and have the same "10 essential health benefits" as other Obamacare plans, including emergency services, hospitalization, pregnancy services, prescription drugs, and mental health and chronic disease treatments.
So why don't most people choose catastrophic health plans? Because an Obamacare provision makes it illegal!
This Obamacare provision, 42 U.S. Code 18022(e)(2), only allows those under 30 or who qualify under a "hardship" exemption to enroll. Liberals in Congress want to force people to buy plans they can't afford because they generally support a single-payer government-run system where all health services are "free."
Congress should immediately repeal this provision of Obamacare. This simple change in the law would allow all of us to choose the kind of health insurance that so many of us want and need. And wider use of these plans would cut government spending and increase economic growth.
The new tax law signed by President Donald Trump on July 4 makes these plans even more attractive. The new law allows plan members to contribute to health savings accounts. HSAs are special tax-free accounts that allow families to pay routine medical expenses, as well as roll over any unspent money in the account into tax-advantaged retirement savings. Obamacare previously had barred catastrophic health insurance plan members from contributing to HSAs.
Sometimes in life the best solution is the simplest one: Stop the hundreds of billions of dollars of wasteful subsidies, the skyrocketing premiums and the "one size fits all" plans that so many of us do not use, want or need -- and instead legalize pro-growth catastrophic health insurance plans for all. Stop fattening the checks of the fat and happy health insurance conglomerates like UnitedHealth, who resist paying honest claims but force you to write monthly checks for insurance you don't use or need.
But things are getting better...
This is a problem? All insurance works this way. If everyone who had homeowners insurance had a house fire, nobody would be able to afford it.
For Gaia’s sake, man, or whatever your pronoun is, how will I ever pay for my gender-affirming surgeries and life-long meds?
Medical insurance is no longer insurance, it’s subsidization. Even considering how high car insurance presently is, imagine the cost if it covered wiper blades, oil changes, and fueling up.
Yes, repeal that provision.
Right now, you can buy catastrophic health insurance only if you're under 30 or you have an "affordability exemption."
But, everyone should be allowed to buy catastrophic health insurance, no matter what age or income.
Also, please repeal the provision that forces low income people onto Medicaid.
The health insurance issue is just the ruse that the democrats are using to shut down the US Government. It is reasonable to conclude that this shut down is to initiate extreme hardship upon millions of Americans. I surmise the democrats and their overlord’s goal is for a hot conflict to start amongst the people and or against the government, with the help of their thugs of course, and to spread it onto the streets throughout the country. Just my sense.
Normal insurance lets you pick your coverages...Obamacare does not. (Pap smear coverage for men, pregnancy coverage for men, birth control for men, routine annual exams, etc., etc., etc.).
Our catastrophic health plan (affordable...$275./mo. for 2 adults)($5K deductible/nothing paid under $5K per year) was dropped when ACA/Obamacare plans went into effect. Was ruled “insufficient coverage”.
I’ll be the judge of that...so much for a “free country” with personal responsibility!
BTW: Obamacare plans for 2 adults run upwards of $1,950./month!
Wait! I don’t understand .... I work for a very big multinational company and the HSA was just added as an option. I had never heard of HSA and now I wish I had had it for the last 20 years. In my research I found out that the HSAs were created by GHW Bush. I wondered why my company never had it. By this article I would assume that Trump made a change that made it possible. However the article says the change is only for catastrophic insurance, but that is not the insurance I have.
It’s all so confusing. At any rate, I called my son, who will very soon be looking for a job, to recommend him HSA if he ever has the choice.
Agreed. The added aspect of catastrophic coverage plans that has been mentioned but not fully spelled out is that with a HSA money is contributed into a savings account, in our case invested in a group of approved ETF. If desired that money can be tapped for any health expense once it accumulates or left to grow. Within a year or two it is larger than the deductible amount.
After my husband’s death there was a distributed amount of many thousands of dollars. HSA/catastrophic plans can be elected by companies for all employees at the company, as a group. That is the case for small businesses, I am unaware if it is a choice for larger companies.
Good point, I forgot to mention that older “HDHP’s” (”High Deductible Health Policies”) were usually tied to an HSA allowing tax-free saving to pay for them. HDHP’s & HSA’s still exist, but with the “new” (ACA) rules that make them less affordable.
BINGO! We have a winner. Same goes with Home insurance. I can speak from experience.
It becomes clear here:
Chairman Hawley Exposes Major Insurance Companies For Ripping Off Policyholders (May 14, 2025)
Catastrophic is all we had when I was growing up and Dad was a Federal Employee. I remember it well because I had chronic throat infections and was always going to see Dr. Mac for penicillin until I outgrew the problem and I always heard the folks talking about the bills.
The root cause of all of this is not the requirement for total health care but all the fat hogs of all varieties at the trough. Medicine in this country just costs too much and there are too many getting it an relying on someone else to pay for it.
This article is a nice idea but it won’t happen. There is too much money being kicked back to politicians who protect the incomes of those that give it to them.
Perfect for young folk who need no insurance.
Health savings accounts.
It’s like paying for oil changes and tune ups(autos). Insurance is for crashes.
$100 for a doctors visit is not too much to demand. For all those who cannot afford a $400 emergency room visit can then go suck an egg.
Age 62-65. I paid $500 a month to Kaiser to see my doctor once a year for 20 minutes.
**Forbes analyzed the premiums of “77 catastrophic health plans nationwide.” The average premium for a 50-year old member is $443 per month, compared to almost $10,000/yr for the average Obamacare plan.
$443/month is an awful lot. How much would it go down if everyone took better care of themselves?
No wonder hospitals and physician care facilities sky rocketed in number over the past 17 years. They were all subsidized by taxpayers.
LOL and ROFLMAO. Not only do we get taxed for it, we then have to pay a premium to cover what the taxes created!!
There is health care and there is health care insurance. Most people want a health care plan preferably paid for by someone else. Features include allowing preexisting conditions, community rating so the old and sick pay less, low copays and low to no deductibles along with no restrictions on who you can see and when you can see them.
Then there is health care insurance. It will have exclusions for preexisting conditions, it will exclude pregnancy and child birth, it won’t cover eyeglasses and dental. You will pay based on age, sex, and health status. You will pay more to have unlimited choice of providers. You will pay by the dependent. To make coverage affordable you will have a high deductible and copays. This is viewed as unfair even by most people on this forum.
Trump has endorsed health care. Most people on this forum want healthcare. Like the UK we will sacrifice our freedom and culture for our social welfare schemes. In the end we will lose our freedom and still be poor and sick.
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