Will Obamacare really strain family budgets?Give it a Chance, read on......

How Obamacare may strain family budgets

Many people will feel the financial burden, with an average per-person cost of at least $2,988 and tax credits limited to fewer than half of buyers.

By Aimee Picchi 7 hours ago

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For many Americans, Obamacare will be a test of their budgets and their tolerance for the health care overhaul.


That's because buying insurance through the health care exchanges will cost individuals "at least $2,988 a year on average" per person, Bloomberg notes.


While that price will be discounted for some people through tax credits, fewer than half of people buying coverage will qualify, according to an August analysis from the Kaiser Family Foundation.


The costs of the Affordable Care Act remain a sore point for Republicans and other conservatives, who point to the law as potentially hurting businesses and workers' wages and are threatening to shut down the federal government as part of their battle to defund the legislation.


Obamacare may lead to a test of the U.S. economy, according to a white paper from Express Employment Professionals. Some companies are cutting employee hours to avoid paying for health insurance, for instance, although the evidence is mostly anecdotal.


But for some individuals, Obamacare's cost may mean a strain on their budgets.


A two-parent, two-child family with annual income of $100,000 won't receive a government tax credit, for example, according to the Kaiser Family Foundation's subsidy calculator. That family's unsubsidized annual health insurance premium would amount to $8,290 per year, based on the midlevel "silver plan."


As the health care exchanges open on Oct. 1 for enrollment, the plans' affordability may make or break the overhaul. If people lack health insurance on Jan. 1, the government will levy a $95-per-month fine, or $1,140 per year. That's still far less than the average cost of health insurance, which may prompt some consumers to gamble against coverage.


As Monness Crespi Hardt & Co. insurance analyst Brian Wright told Bloomberg, Obamacare's success "will depend on the changes that are made over the next couple of years to address the affordability issue."