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Obamacare Reality Check: Obamacare’s Premiums and Deductibles Are Unaffordable

October 26, 2016

Contact: Caroline Rabbitt (202) 224-2353

Washington, D.C.- Senator Tom Cotton (R-Arkansas) today released the following statement on the skyrocketing costs of health insurance under Obamacare:

"This week, the Obama administration confirmed that monthly health insurance premiums will increase on average by a staggering twenty-five percent. And in some states, premiums will increase by more than 100 percent. For Arkansans, these increases are unaffordable, especially when coupled with deductibles averaging more than $5,000.

"Six years ago, President Obama promised Obamacare would make healthcare more affordable, but that couldn't be further from reality. Instead, as Obamacare collapses, President Obama's domestic legacy will be unaffordable healthcare and a broken system. As we work toward full repeal, we should take action to give Americans a break from this unaffordable law by passing the Obamacare Tax Relief and Consumer Choice Act. "

Background: Spiraling healthcare costs cause the Obamacare mandate tax to hit the most vulnerable Americans. This bill provides targeted relief from some of Obamacare's most costly provisions by:

  • Providing mandate relief
    • New exemption if state average premium increase is greater than 10 percent
    • Expand affordability exemption to account for the cost of deductibles.
  • Providing tax-favorable alternative to Obamacare
    • Removes ObamaCare's 20 percent tax on Health Savings Accounts.
    • Allows Health Savings Accounts to be used for over-the-counter drugs and medical costs, such as Claritin or Zantac