The ObamaCare Affect
“A review of the facts”
ABSTRACT to the article
Prior to the initiation of ObamaCare in October 2013, Health Insurance coverage consisted of most retirees on Medicare or Pension funded Insurance and many employed people covered by private health insurance. Many uninsured and indigent people had the option to apply for Medicaid coverage. Uninsured persons who became ill or injured were responsible for paying all of the health expenses they incurred. Both private and public health care facilities and providers are hurt financially when uninsured patients cannot pay their bills. These losses are eventually passed on to patients or payors who can pay higher prices and cover these losses. The overall rising cost of health care is due to many factors including unpaid bills, medical malpractice suits, fraud, lack of insurance competition across state lines, etc. The American Health Care system is still one of the best systems in the world and improvements can be made in several areas but the intention of ObamaCare is to totally revamp the entire health care system.
It is important that people understand that Health Insurance is a business that evolved because entrepreneurs understood that many people wanted to reduce their own risk of health care costs. Health Insurance is a business of risk. People choose to increase or decrease their own personal risks with decisions every day. Choosing to pay for health insurance has always been a choice for Americans prior to ObamaCare. It makes more sense for some people than others to obtain health insurance but has never been a requirement. ObamaCare mandates that everyone pay for health insurance coverage and it is now essentially an additional tax on Americans rather than a choice.
Prior to ObamaCare, insurance companies competed amongst themselves which led to lower premiums and a greater variety of services to choose from. Since Insurance is a business there are costs that must be managed and adequate revenue to stay in business. Insurance companies have always offered different levels of coverage depending upon what patients were willing to pay for. ObamaCare mandates will cause all insurance premiums to increase for everyone because plans have to absorb expenses that were not mandatory in the past. Government intrusion into private businesses has increased over time and often leads to higher prices for consumers although there are some positive affects that come from government regulations. A flaw in the ObamaCare law is the fact that the law was crafted by only one political party and passed by that same political party resulting in nearly 50% of American voter representation being left out of the decision.
There are several major affects that ObamaCare will have on the American Health Care System and the economy.
The first affect of ObamaCare is that premiums will rise for all health plans leading to more expensive health insurance for everyone. President Obama assured everyone that Insurance Premiums would go down an average of $2,500 per year. The fact is that annual premiums have risen $7,500 since ObamaCare was passed, which is a $10,000 overall swing from what was promised. Either President Obama does not understand the financial impact his bill has on insurance companies or he ignored this possible effect to mislead Americans into buying into ObamaCare. ObamaCare includes mandates that insurance companies must include no matter what the cost, which results in companies passing on these costs to plan members in the form of higher premiums.
The second affect of ObamaCare is the mandate that everyone must purchase health insurance. Purchasing insurance is no longer a choice and has become a tax on everyone who must obtain insurance.
The third affect of ObamaCare is the added cost to businesses. Companies with 50 or more full time employees must pay for insurance whether they could previously afford it or not. This is resulting in many employers reducing their full time staff to below 50 employees.
The fourth affect of ObamaCare is the way in which large companies are managing the additional costs and regulations that ObamaCare demands of them. Many will drop insurance coverage in favor of paying fines that are less expensive than insurance premiums. Some companies will place the burden on their employees to obtain insurance on their own. Walgreens Pharmacy with 160,000 covered employees has reviewed the increase in Insurance Premium cost and the additional regulations demanded by the new law and have recently decided to drop Insurance coverage. If the new law really decreased health care costs and was a positive change, why is this employer and many others choosing to drop coverage for their employees?
The fifth affect of ObamaCare is the potential reduction or elimination of private health insurance companies in the market. Rising costs due to mandates and reductions in the number of covered lives for some plans will cause insurance companies to get out of the business rather than lose money. The end result will be less competition, reduced service levels, and eventually the possibility of the formation of a single payor system run by the government.
The sixth affect of ObamaCare may be the most severe and detrimental to the American health care system as we know it. The entire health care system may collapse due to the overwhelming addition of insured patients. All health care providers will have to take on greater roles of caring for patients, leading to a reduction in quality of care, increased lawsuits, a greater level of dissatisfaction from patients, longer waiting periods, and reduced professional satisfaction felt by doctors and other health care professionals. The end result will drive good physicians out of practice to retire or start other more satisfying or profitable businesses.
Can the ObamaCare plan be wrong for America? Could the President and his party have included input from all representatives in our country? Could the Health Insurance system been modified without being overhauled? Will ObamaCare cause the great American Health Care system to collapse or fail?
Time will only tell and history will bear witness to how this experiment on the greatest health care system in the world prior to 2013 will turn out.