Kokomo Tribune; Kokomo, Indiana

State News

September 30, 2013

Fact check: Slippery claims on health law, budget

WASHINGTON (AP) — President Barack Obama is the insurance industry’s most powerful pitchman these days as he drums up interest in the health insurance markets opening for business Tuesday. Whatever the merits of his product, there are reasons for the buyer to beware of his rhetoric.

The president is being a bit slippery on the costs of coverage, in particular.

His opponents are taking their own liberties as they talk up the ills of what they deride as “Obamacare” and defend their approach to the budget impasse that threatens to close parts of the government come Tuesday.

On these points, caveat emptor:

OBAMA: “Knowing you can offer your family the security of health care, that’s priceless. Now, you can do it for the cost of your cable bill, probably less than your cellphone bill. Think about that, good health insurance for the price of your cellphone bill or less.” — Speech in Largo, Md., on Thursday.

THE FACTS: The family coverage you can get for the cost of a monthly cable or cellphone bill is going to expose you to a hefty share of your medical expenses. Looked at in terms of digital communications, it’s more like dial-up Internet than 4G.

The cellphone analogy has become the talking point of the week for administration officials pitching people on the health care markets opening for business Tuesday. Obama said earlier that of every 10 Americans who are uninsured, “six out of those 10 are going to be able to get covered for less than $100 a month, less than your cellphone bills.”

He is referring to the cheapest of four major options offered by the new markets, the “bronze” plan. But, just like with auto insurance, premiums aren’t the only potential expense for a consumer. Those who choose bronze will have to pay 40 percent of their medical bills out of pocket through deductibles and copayments. A family’s share of medical costs could go as high as $12,700 a year, or $6,350 for individuals, on top of those cellphone-like premiums.

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