Health Care Reform — Smashing The 3 Biggest Beliefs Of ObamaCare
Within the last few months we’ve seen a lot of Health care Reform rules and regulations being introduced by the Health and Human Services Department. Every time that takes Sildenax Composição place, the media gets hold of it and all kinds of articles are written in the Wall Street Journal, the new York Times, and the TV network news programs talk about it. All the analysts start talking about the pros and cons, and what it means to businesses and individuals.
The problem with this is, many times one writer looked at the regulation, and wrote an item about it. Then other writers start employing pieces from that first article and reworking parts to fit their article. By the time the information gets widely distributed, the actual regulations and rules get sprained and distorted, and what actually shows up in the media sometimes just doesn’t truly represent the truth of what the regulations say.
There are plenty of unawareness about the proceedings with ObamaCare, and one of the things that I’ve noticed in discussions with clients, is that there’s an underlying set of beliefs that people have picked up about health care reform that just aren’t true. But because of all they’ve heard in the media, people believe these beliefs are actually true.
Today we are going to talk about three beliefs I hear most commonly. No person believes these beliefs, but enough do, yet others are unsure what to believe, so it warrants dispelling these beliefs now.
The first one is that health care reform only affects uninsured people. The second one is that Medicare health insurance benefits and the Medicare health insurance program isn’t going to be affected by health care reform. And then the last one is that health care reform is going to reduce the costs of healthcare.
Health care Reform Only Affects Uninsured
Let’s look at the first fantasy about health care reform only impacting uninsured people. In a lot of the discussions I have with clients, there are several expressions they use: “I already have coverage, so i won’t be affected by ObamaCare, inch or “I’ll just keep my grandfathered health insurance plan, inch and the last one — and this one I can give them a little bit of margin, because part of what they’re saying holds true — is “I have group health insurance, so i won’t be affected by health care reform. inch
Well, the reality is that health care reform is actually going to affect everybody. Starting in 2014, we are going to have a completely new set of health plans, and those plans have very rich benefits with lots of extra features that the existing plans today don’t offer. So these new plans are going to be higher cost.
Health care Reform’s Influence on People with Health insurance
People that already have got health insurance are going to be transitioned into these new plans sometime in 2014. So the insured will be directly affected by this because the health plans they have today are going away, and they’ll be mapped into a new ObamaCare plan in 2014.
Health care Reform Influence on The Uninsured
The uninsured have an additional issue in that if they do not get health insurance in 2014, they face a require charges. Some of the healthy uninsured are going to look at that charges and say, “Well, the charges is 1% of my adjusted gross income; I make $50, 000, so I’ll pay a $500 charges or $1, 000 for health insurance. In that case I’ll take the charges. inch But either way, they will be directly affected by health care reform. Through the require it affects the insured as well as the uninsured.
Health care Reform Influence on People with Grandfathered Health Plans
Some people that have grandfathered health insurance plans will never be directly affected by health care reform. But because of the life cycle of their grandfathered health plan, it’s going to make those plans more costly as they discover that there are plans currently available that they can easily transfer fot it have a richer set of benefits that has to be more beneficial for any chronic health issues they may have.
For those who stay in those grandfathered plans, the pool of subscribers in the plan are going to start to get smaller, and as that takes place, the cost of those grandfathered health insurance plans will increase even faster than they are now. Therefore, people in grandfathered health plans will also be impacted by ObamaCare.
Health care Reform Influence on People with Group Health insurance
The last one, small group marketplace, is going to be the most notably affected by health care reform. Even though the health care reform regulations mostly affect large and medium-sized companies, and companies that have 50 or more employees, smaller companies will also be affected, even though they’re exempt from ObamaCare itself.
What many surveys and polls are beginning show is that some of the businesses that have 10 or fewer employees are going to look seriously at their choice to drop health insurance coverage altogether, and no longer contain it as an expense of the company. Instead, they will have their employees get health insurance through the health insurance transactions.
In fact, some of the carriers are now saying they anticipate that up to 50% of small groups with 10 or fewer employees are going to drop their health insurance plan sometime between 2014 and 2016. That will use a large influence on all people who have group health insurance, especially when they’re in one of those small companies that drop health insurance coverage.
It’s not just uninsured that are going to be affected by health care reform, everybody is going to be impacted.
Health care Reform Will not Affect Medicare health insurance
The next fantasy was that health care reform would not affect Medicare health insurance. This one is kind of funny because from the very get-go, the most known cuts were specifically targeting the Medicare health insurance program. When you look at Medicare’s area of the overall federal, you can see that in 1970, Medicare health insurance was 4% of the You. S. federal budget, and by 2011, it had grown to 16% of the federal budget.
If we view it during the last 10 years, from 2002 to 2012, Medicare health insurance is the fastest growing the main major entitlement programs in the government, and it’s really grown by almost 70% during that period of time.
Because of what size Medicare health insurance is and how fast it’s growing, it’s one of the key programs that ObamaCare is trying to get a grip on, so it doesn’t bankrupts the You. S. Medicare health insurance is going to be impacted, and in fact the initial cuts to Medicare health insurance have already been set at about $716 thousand.
Medicare health insurance Advantage Cuts And the Effects
Of these $716 thousand cut, the Medicare health insurance Advantage program gets cut the most, and will see the bulk of the effects. What which would do is increase the premiums people pay for their Medicare health insurance Advantage plans, and reduce the benefits of those plans.
Increased Medicare health insurance Advantage Costs
Right now, many people choose Medicare health insurance Advantage plans because they have zero premium. When given a selection on Medicare health insurance plans, they view it as an easy choice because it’s a free program for them, “Sure, I get Medicare health insurance benefits, I don’t pay anything for it; why not. inch Now they’re going to see Medicare health insurance premiums start to climb, and go from zero to $70, $80, $90, $100. We’ve already seen that with some of the Blue Cross Medicare health insurance Advantage plans this year. It’s going to get worse even as move forward in the future.
Reduced Medicare health insurance Advantage Benefits
In order to minimize the premium increases, what many Medicare health insurance Advantage plans will do is increase the copayments, increase the deductibles, and change the co-insurance rates. So that the premiums down, they’ll just push more of the costs onto the Medicare health insurance Advantage recipients. Increased premiums and reduced benefits are what we are going to see arriving Medicare health insurance Advantage plan.
Fewer Medicare health insurance Medical professionals
And then if that was not bad enough, as Medicare health insurance doctors begin receiving lower and lower payments for Medicare health insurance Advantage people, they’re going to stop taking new Medicare health insurance Advantage recipients. We are going to see the pool of doctors to support people in Medicare health insurance beginning get smaller as well, unless changes are made over the course of the next five years. So Medicare health insurance is going to be affected, and it will be affected dramatically by health care reform. Everyone’s kind of on pins and sharp needles, waiting to see what is going to happen there.
Health care Reform Will Reduce Healthcare Costs
The last one, and likely the biggest fantasy about health care reform, is everybody thinking that ObamaCare will reduce healthcare costs. That’s completely hogwash. Early on in the process, when they were trying to think of the rules and regulations, the emphasis and one of the goals for reform was to reduce healthcare costs.
But somewhere along the line, the goal actually moved from cost reduction to regulation of the health insurance industry. Once they made that changeover, they pushed cost discounts to the back burner. There are some small cost reduction components in ObamaCare, but the real emphasis is on unsafe effects of health insurance. The new plans, for example, have much richer benefits than many plans today: richer benefits means richer prices.
Health care Reform Tax assistance: Will They Make Plans Affordable?
A lot of people hope, “The tax assistance are going to make health insurance plans more affordable, won’t they? inch Yes, in some cases the tax assistance will make the plans affordable for people. But if you make $1 too much, the affordable plans are suddenly going to become very expensive and can cost thousands of dollars more over the course of a year. Will a subsidy make it affordable or not affordable is really susceptible to debate at this era. We are going to have to actually see what the rates look like for these plans.
New Health care Reform Taxes Given to To Consumers
Then there’s a whole ton of new health care reform taxes which have been added into the system to help pay for ObamaCare. That means everybody who has a health insurance plan, whether it’s in a large group, a small group, or just as an individual, is going to be taxed in order to pay for the cost of reform. Health care reform adds various taxes on health care that insurance companies will have to collect and pay, but they’re just going to pass it right through to us, the consumer.
Require Won’t Reduce Uninsured Very much
During the initial years of health care reform, the require is actually pretty weak. The require says that everyone must get health insurance or pay a charges (a tax). What which would do is make healthy people just take a seat on the sidelines and wait for the require to get to the point where it finally forces them to buy health insurance. People with chronic health conditions that couldn’t get health insurance previously, are all going to jump into healthcare at the beginning of 2014.
At the end of these year, the cost for the plans is going to increase in 2015. I can guarantee that which would happen, because the young healthy people will never be motivated to get into the plans. They will not see the benefit of joining a costly plan, whereas the chronically ill people are going to get into the plans and drive the costs up.
Health care Reform’s Purpose Is just A Matter Of Semantics
The last area of this is, one of the key things — and it’s really funny, I saw it for the first two years, 2010, and ’11 — one of the key things that was listed in the documentation from the Federal government was: Health care Reform would lessen the cost that we would see in the future if we do nothing today. That was highlighted over and over again. That was how they presented health care cost reduction, that it would reduce the future costs. Not today, but it would reduce what we would pay in the future if we did nothing about it now.
Well, that’s great, 10 years from now we are going to pay less than we would have paid. And we all know how accurate future projections usually are. At the same time, all of us are paying more today, and we are going to pay even more in 2014 and more in 2015 and 2016. People are going to be pretty upset about that.
Those three beliefs, that health care reform will affect the uninsured, that it won’t affect Medicare health insurance beneficiaries, and that ObamaCare is going to reduce healthcare costs, are just that. They are beliefs. There’s nothing to them.
It is certainly important that you pay attention to what’s happening with health care reform, because there are more changes that are coming even as go through this year, 2013. Finding out how to position yourself so that you’re in the right spot to be able to make the best decision at the beginning of 2014 is going to be vital for everybody.