November 12, 2014

Hidden Obamacare Tax: Car Insurance

UncleSamTax.jpeg Hidden Obamacare Tax: Car Insurance

Love it or hate it, Obamacare (Affordable Care Act) is changing America’s healthcare. Both supporters and opponents understand that increased use of healthcare services will lead to larger medical bills. Obamacare supporters argue that healthcare costs will decrease by expanding coverage, eliminating abuses, and incentivizing high quality care. Opponents argue that expanding coverage will only lead to increased spending.

Everyone agrees that medical bills are increasing. Forbes notes that “healthcare spending for the first three months of 2014 rose at the fastest rate in 34 years. . . .” Healthcare spending has steadily risen for more than 10 years and is approaching $9,000.00 per person annually for every man, woman, and child in the United States.

Experiencing a significant injury can result in tens of thousands of dollars in medical bills. As a lawyer who helps injured people recover their financial losses, I commonly see medical bills exceed $25,000.00. Even two-day hospital stays can top $50,000.00. I believe that those bills will continue to increase with the implementation of Obamacare.

When a person is injured in a car accident by the negligence of another driver, the wrongdoing driver is held responsible for the medical bills, among other losses. However, South Carolina law only requires drivers to have $25,000.00 of insurance coverage.

Often, drivers with minimum limits of car insurance cannot pay for medical treatment that exceeds those minimum limits ($25,000.00 in South Carolina). That leaves the injured person holding the bill for what’s left over. That’s right, an injured person could be left with thousands of dollars in medical bills for a car collision that someone else caused.

With increasing medical bills, $25,000.00 may barely cover even one day in a hospital. If an injured person needs extensive follow care or surgery, their medical bills may exceed $100,000.00. Most people fear the possibility they could be on the hook for tens of thousands of dollars in medical bills because someone else crashed into them.

The solution is to purchase optional underinsured coverage on your car insurance. Underinsured coverage steps in and pays the difference between what the other driver paid and what you owe. However, this coverage adds to your car insurance bill.

Healthcare bills are increasing after Obamacare. At the same time, other drivers only have to purchase $25,000.00 of auto insurance. This means you must buy extra car insurance to cover any excess medical bills from automobile collision injuries or face thousands of left over medical bills. Your premiums for that extra coverage are the hidden Obamacare tax. Some of you may have no problem paying extra. Others may protest. Please let me know your thoughts.

Brian R. Murphy is a South Carolina personal injury and car accident lawyer. His law firm helps people who have been hurt by the negligence and recklessness of others. He believes that safety rule violators should take personal responsibility and pay for the harm they cause. Brian’s firm is dedicated to promoting and pursuing justice for the injured. For more information, visit the firm online at