This post has been submitted for publication at Mediaite, but is being published here first:
On Monday night's The Kelly File, Fox News' Trace Gallagher delivered a report on yet another Obamascare horror story that didn't quite check out, and which was based entirely on reporting from The Heritage Foundation blog. Since publication of a fact-check on that story, Heritage has "updated" their story several times to address the points raised in that critique, acknowledging some problems in their original report. That's to their credit, even if they couldn't bring themselves to call them corrections, but their updated post still doesn't check out.
The Fox News report focused on the sacrifices that the family of Northern Californian Kate Joy will have to make in order to afford health insurance under Obamacare, which includes things like extra mortgage payments, manicures, and dinners out. “They live in northern California, and help support their 19- and 21-year-old sons who work part-time and go to college,” Gallagher reported. “Here’s the deal. Under the old plan they paid $499 a month. Of course it was cancelled, because it doesn’t qualify under the Affordable Care Act. Look at the number. $1,252 per month.”
According to that Heritage post, the Joys “live off her husband’s retirement salary,” and that “the family does not qualify for any subsidies.” She told Heritage that the $750 increase was on-fifth of her husband's salary, which is $45,120 a year. According to Covered California, a family of four adults from Sonora, CA, at that income level, qualifies for subsidies that would make an Anthem Blue Cross Bronze plan available for $4 per month. That’s not a typo. Four bucks. For $172 /mo., such a family could get an enhanced Silver plan from Anthem with a $1,000 family deductible, $16,000 less than the Joys’ old plan. $507, what the Joys were paying before, gets an Anthem Gold plan with no deductible at all.
This is where the "updates" come in, and I don't scare-quote that word just to be a jerk. Heritage's reporting was, at best, sloppy and incomplete, but they were also given incorrect information by their source, incorrect information that seems to be the result of honest confusion. They still should have checked, but in a series of tweets, they seem genuinely interested in sorting it out. Here are those updates:
UPDATE: Following publication of this story, Mediaite asserted on November 26 that Kate Joy’s family is eligible for subsidies that would make a Bronze 60 plan available at $4 per month. That is incorrect.
Even though she has chosen not to disclose her husband’s retirement salary, Joy did confirm that it is higher than the $58,899 cut off for subsidies under Covered California. The Anthem option that is closest to the family’s current plan is $1,252 per month — money that Joy reiterated will cause unwanted cuts in other areas of the family budget:
"As I tried to point out and I don’t think it came across, we are in a position to make discretionary spending cuts and we are truly blessed, but we still have a monthly budget and no one, I don’t care their income level, should have to deal with increases like we are seeing with Obamacare."
UPDATE II: In a series of tweets, Mediaite’s Tommy Christopher challenged Heritage’s update to this story. It appears that a poorly worded sentence on our part is causing confusion about whether Kate Joy’s family qualifies for a subsidy.
The sentence originally read: “The 150 percent premium increase amounts to one-fifth of her husband’s retirement salary, and she said that they don’t want to devote that much money to health care.”
In his story, Christopher was basing his calculations on the $753 per month increase in the family’s premium. Over the course of a year, that increase totals $9,036. That’s how Christopher calculated the $45,120 salary he included in his story.
However, in a subsequent email exchange with Kate Joy, she explained the total cost of the premium—not the increase alone—amounts to one-fifth of the salary. She declined to reveal the actual salary, but told us it is more than $58,899 cutoff for a subsidy. Joy got the subsidy number by using the Covered California calculator.
She acknowledged that a family of four could qualify for a Bronze 60 plan at $4 per month, as Christopher explained. Joy’s family, however, isn’t eligible because of her husband’s income.
What does this mean for the Joy family? Kate can purchase the Bronze 60 plan for $1,136 per month from Covered California. Instead, she’s decided to stick with Anthem, at a cost of $1,252 per month, because the Bronze 60 plan has higher out-of-pocket costs in the event of a major medical event. In our earlier update, we inadvertently used the $1,136 figure instead of the $1,252 monthly cost. We regret the error.As I explained to Heritage's Robert Bluey on Twitter, Joy's revised claim, that their income is five times the total premium amount, still only adds up to about $75,000, well within the cutoff for federal assistance. The cutoff figure that Kate Joy got from the Covered California calculator is for cost-sharing subsidies; the cutoff for premium assistance is $94,200. According to Covered California, based on a $75,000 a year income for a family of four, a PPO Bronze costs $171 /mo. after premium assistance.
Ideological differences aside, this is confusing stuff, and even the best mainstream reporters have failed to thoroughly check these stories out. What's important is that everyone get the right information, and get health insurance if they can. Heritage has offered to help Mrs. Joy get in touch with me so we can sort this whole thing out. Whatever you want to call it, a correction, an update, or a clarification, Fox News should follow Heritage's lead, and give its viewers the correct story.
Here's the post after it was edited, and then still not published, by Mediaite:
Heritage Foundation Updates Incorrect Obamascare Story
On Monday night's The Kelly File, Fox News' Trace Gallagher delivered a report on yet another Obamascare horror story that didn't quite check out, and which was based entirely on reporting from The Heritage Foundation blog. Since publication of a fact-check on that story, Heritage has updated their story several times to address the points raised in that critique, acknowledging some problems in their original report. That's to their credit, even if they couldn't bring themselves to call them corrections, but their updated post still doesn't check out.
The Fox News report focused on the sacrifices that the family of Northern Californian Kate Joy will have to make in order to afford health insurance under Obamacare, which includes things like extra mortgage payments, manicures, and dinners out. “They live in northern California, and help support their 19- and 21-year-old sons who work part-time and go to college,” Gallagher reported. “Here’s the deal. Under the old plan they paid $499 a month. Of course it was cancelled, because it doesn’t qualify under the Affordable Care Act. Look at the number. $1,252 per month.”
According to that Heritage post, the Joys “live off her husband’s retirement salary,” and that “the family does not qualify for any subsidies.”
She told Heritage that the $750 increase was on-fifth of her husband's salary, which is $45,120 a year. According to Covered California, a family of four adults from Sonora, CA, at that income level, qualifies for subsidies that would make an Anthem Blue Cross Bronze plan available for $4 per month. That’s not a typo. Four bucks. For $172 /mo., such a family could get an enhanced Silver plan from Anthem with a $1,000 family deductible, $16,000 less than the Joys’ old plan. $507, what the Joys were paying before, gets an Anthem Gold plan with no deductible at all.
Heritage's reporting was, at best, sloppy and incomplete, but they were also given incorrect information by their source, incorrect information that seems to be the result of honest confusion. They still should have checked, but in a series of tweets, they seem genuinely interested in sorting it out. Here are those updates:
UPDATE: Following publication of this story, Mediaite asserted on November 26 that Kate Joy’s family is eligible for subsidies that would make a Bronze 60 plan available at $4 per month. That is incorrect.
Even though she has chosen not to disclose her husband’s retirement salary, Joy did confirm that it is higher than the $58,899 cut off for subsidies under Covered California.
The Anthem option that is closest to the family’s current plan is $1,252 per month — money that Joy reiterated will cause unwanted cuts in other areas of the family budget:
As I tried to point out and I don’t think it came across, we are in a position to make discretionary spending cuts and we are truly blessed, but we still have a monthly budget and no one, I don’t care their income level, should have to deal with increases like we are seeing with Obamacare.
UPDATE II: In a series of tweets, Mediaite’s Tommy Christopher challenged Heritage’s update to this story. It appears that a poorly worded sentence on our part is causing confusion about whether Kate Joy’s family qualifies for a subsidy.
The sentence originally read: “The 150 percent premium increase amounts to one-fifth of her husband’s retirement salary, and she said that they don’t want to devote that much money to health care.”
In his story, Christopher was basing his calculations on the $753 per month increase in the family’s premium. Over the course of a year, that increase totals $9,036. That’s how Christopher calculated the $45,120 salary he included in his story.
However, in a subsequent email exchange with Kate Joy, she explained the total cost of the premium—not the increase alone—amounts to one-fifth of the salary. She declined to reveal the actual salary, but told us it is more than $58,899 cutoff for a subsidy.
Joy got the subsidy number by using the Covered California calculator. She acknowledged that a family of four could qualify for a Bronze 60 plan at $4 per month, as Christopher explained. Joy’s family, however, isn’t eligible because of her husband’s income.
What does this mean for the Joy family? Kate can purchase the Bronze 60 plan for $1,136 per month from Covered California. Instead, she’s decided to stick with Anthem, at a cost of $1,252 per month, because the Bronze 60 plan has higher out-of-pocket costs in the event of a major medical event.
In our earlier update, we inadvertently used the $1,136 figure instead of the $1,252 monthly cost. We regret the error.
As I explained to Heritage's Robert Bluey on Twitter, Joy's revised claim, that their income is five times the total premium amount, still only adds up to about $75,000, well within the cutoff for federal assistance. The cutoff figure that Kate Joy got from the Covered California calculator is for cost-sharing subsidies; the cutoff for premium assistance is $94,200. According to Covered California, based on a $75,000 a year income for a family of four, a PPO Bronze costs $171 /mo. after premium assistance.
Ideological differences aside, this is confusing stuff, and even the best mainstream reporters have failed to thoroughly check these stories out. What's important is that everyone get the right information, and get health insurance if they can. Heritage has offered to help Mrs. Joy get in touch with me so we can sort this whole thing out.
