Skip to content Skip to sidebar Skip to footer

Health Care Reform - Busting the three Biggest Myths Of Obama Care

Health Care Reform - Busting the three Biggest Myths Of ObamaCare

In the previous couple of months we have seen tons of Health Care Reform rules and regulations being introduced by the Health and Human Services Department. whenever that happens, the media gets hold of it and every one sorts of articles are written within the Wall Street Journal, the ny Times, and therefore the TV network news programs mention it. All the analysts start talking about the pros and cons, and what it means to businesses and individuals.

The problem with this is often , repeatedly one writer checked out the regulation, and wrote a bit about it. Then other writers start using pieces from that first article and rewriting parts to suit their article. By the time the knowledge gets cosmopolitan , the particular regulations and rules get twisted and distorted, and what actually shows up within the media sometimes just doesn't truly represent the truth of what the regulations say.

There's a lot of confusion about what's happening with ObamaCare, and one among the items that I've noticed in discussions with clients, is that there is an underlying set of myths that folks have picked up about health care reform that just aren't true. But due to all they've heard within the media, people believe these myths are literally true.

Today we're getting to mention three myths I hear most ordinarily . nobody believes these myths, but enough do, et al. are unsure what to believe, so it warrants dispelling these myths now.

The first one is that health care reform only affects uninsured people. The other is that Medicare benefits and therefore the Medicare program isn't getting to be suffering from health care reform. then the last one is that health care reform goes to scale back the prices of healthcare.

Health Care Reform Only Affects Uninsured

Let's check out the primary myth about health care reform only affecting uninsured people. during a lot of the discussions I even have with clients, there are several expressions they use: "I have already got coverage, so I won't be suffering from ObamaCare," or "I'll just keep my grandfathered insurance plan," and therefore the last one - and this one I can give them a touch little bit of leeway, because a part of what they're saying is true -- is "I have group insurance , so I won't be suffering from health care reform."

Well, the truth is that health care reform is really getting to affect everybody. Starting in 2014, we're getting to have an entire new set of health plans, and people plans have very rich benefits with many extra features that the prevailing plans today don't offer. So these new plans are getting to be higher cost.

Health Care Reform's Effect On People With insurance 

People that currently have insurance are getting to be transitioned into these new plans sometime in 2014. therefore the insured are going to be directly suffering from this because the health plans they need today are departure , and that they are going to be mapped into a replacement ObamaCare plan in 2014.

Health Care Reform Effect On The Uninsured

The uninsured have a further issue therein if they do not get insurance in 2014, they face a mandate penalty. a number of the healthy uninsured are getting to check out that penalty and say, "Well, the penalty is eighteen of my adjusted gross income; I make $50,000, so I'll pay a $500 penalty or $1,000 for insurance . therein case I'll just take the penalty." But either way, they're going to be directly suffering from health care reform. Through the mandate it affects the insured also because the uninsured.

Health Care Reform Effect On People With Grandfathered Health Plans

People that have grandfathered insurance plans aren't getting to be directly suffering from health care reform. But due to the life cycle of their grandfathered health plan, it's getting to make those plans more costly as they discover that there are plans available now that they will easily transfer thereto have a richer set of advantages that might be more beneficial for any chronic health issues they'll have.

For people that stay in those grandfathered plans, the pool of subscribers within the plan are getting to start to shrink, and as that happens, the value of these grandfathered insurance plans will increase even faster than they're now. Therefore, people in grandfathered health plans also will be impacted by ObamaCare.

Health Care Reform Effect On People With Group insurance 

The last one, the tiny group marketplace, goes to be the foremost notably suffering from health care reform. albeit the health care reform regulations predominantly affect large and medium-sized companies, and corporations that have 50 or more employees, smaller companies also will be affected, albeit they're exempt from ObamaCare itself.

What many surveys and polls are beginning to show is that a number of the companies that have 10 or fewer employees are getting to look seriously at their choice to drop insurance coverage altogether, and not have it as an expense of the corporate . Instead, they're going to have their employees get insurance through the insurance exchanges.

In fact, a number of the carriers are now saying they anticipate that up to 50% of small groups with 10 or fewer employees are getting to drop their insurance plan sometime between 2014 and 2016. which will have a really large effect on all people that have group insurance , especially if they're in one among those small companies that drop insurance coverage.

It's not just uninsured that are getting to be suffering from health care reform, everybody goes to be impacted.

Health Care Reform won't Affect Medicare

The next myth was that health care reform wouldn't affect Medicare. This one is quite funny because right from the very get-go, the foremost notable cuts were specifically targeting the Medicare program. once you check out Medicare's portion of the general federal, you'll see that in 1970, Medicare was 4% of the U.S. federal budget, and by 2011, it had grown to 16% of the federal budget.

If we glance at it over the last 10 years, from 2002 to 2012, Medicare is that the fastest growing a part of the main entitlement programs within the federal , and it's grown by almost 70% during that period of your time .

Because of how large Medicare is and the way fast it's growing, it's one among the key programs that ObamaCare is trying to urge a handle on, so it doesn't bankrupts the U.S. Medicare goes to be impacted, and actually the initial cuts to Medicare have already been set at about $716 billion.

Medicare Advantage Cuts and therefore the Effects

Of that $716 billion cut, the Medicare Advantage program gets cut the foremost , and can see the majority of the consequences . What that's getting to do is increase the premiums people buy their Medicare Advantage plans, and reduce the advantages of these plans.

Increased Medicare Advantage Costs

Right now, many of us choose Medicare Advantage plans because they need zero premium. When given a choice on Medicare plans, they view it as a simple choice because it is a free program for them, "Sure, i buy Medicare benefits, i do not pay anything for it; why not." Now they go to ascertain Medicare premiums start to climb, and go from zero to $70, $80, $90, $100. We've already seen that with a number of the Blue Cross Medicare Advantage plans this year. It's getting to worsen as we proceed within the future.

Reduced Medicare Advantage Benefits

In order to attenuate the premium increases, what many Medicare Advantage plans will do is increase the copayments, increase the deductibles, and alter the co-insurance rates. so as to stay the premiums down, they'll just push more of the prices onto the Medicare Advantage recipients. Increased premiums and reduced benefits are what we're getting to see coming in Medicare Advantage plan.

Fewer Medicare Physicians

And then if that wasn't bad enough, as Medicare doctors begin receiving lower and lower reimbursements for Medicare Advantage people, they go to prevent taking new Medicare Advantage recipients. We're getting to see the pool of doctors to support people in Medicare beginning to shrink also , unless changes are remodeled the course of subsequent five years. So Medicare goes to be affected, and it's getting to be affected dramatically by health care reform. Everybody's quite on pins and needles, waiting to ascertain what is going on to happen there.

Health Care Reform Will Reduce Healthcare Costs

The last one, and doubtless the most important myth about health care reform, is everybody thinking that ObamaCare will reduce healthcare costs. That's completely hogwash. early within the process, once they were trying to return up with the principles and regulations, the stress and one among the goals for reform was to scale back healthcare costs.

But somewhere along the road , the goal actually shifted from cost reduction to regulation of the insurance industry. Once they made that transition, they pushed cost reductions to the rear burner. There are some small cost reduction components in ObamaCare, but the important emphasis is on regulating insurance . The new plans, for instance , have much richer benefits than many plans today: richer benefits means richer prices.

Health Care Reform Subsidies: Will they create Plans Affordable?

A lot of individuals hope, "The subsidies are getting to make insurance plans cheaper , won't they?" Yes, in some cases the subsidies will help to form the plans affordable for people. But if you create $1 an excessive amount of , the affordable plans are suddenly getting to become very expensive and may cost thousands of dollars more over the course of a year. Will a subsidy make it affordable or not affordable is basically subject to debate at now in time. We're getting to need to actually see what the rates appear as if for these plans.

New Health Care Reform Taxes Passed On To Consumers

Then there is a whole ton of latest health care reform taxes that are added into the system to assist buy ObamaCare. meaning everybody who features a insurance plan, whether it's during a large group, alittle group, or simply as a private , goes to be taxed so as to buy the value of reform. Health care reform adds various taxes on health care that insurance companies will need to collect and pay, but they're just getting to pass it throughout to us, the buyer .

Mandate Won't Reduce Uninsured considerably 

During the initial years of health care reform, the mandate is really pretty weak. The mandate says that everybody must get insurance or pay a penalty (a tax). What that's getting to do is make healthy people just sit on the sidelines and await the mandate to urge to the purpose where it finally forces them to shop for insurance . People with chronic health conditions that couldn't get insurance previously, are all getting to jump into healthcare at the start of 2014.

At the top of that year, the value for the plans goes to travel up in 2015. I can guarantee that that's getting to happen, because the young healthy people aren't getting to be motivated to urge into the plans. they will not see the advantage of joining an upscale plan, whereas the chronically ill people are getting to get into the plans and drive the prices up.

Health Care Reform's Purpose is simply A Matter Of Semantics

The last portion of this is often , one among the key things - and it's funny, I saw it for the primary two years, 2010, and '11 - one among the key things that was listed within the documentation from the Obama administration was: Health Care Reform would help reduce the value that we might see within the future if we do nothing today. That was emphasized over and once again . That was how they presented health care cost reduction, that it might reduce the longer term costs. Not today, but it might reduce what we might pay within the future if we did nothing about it now.

Well, that's great, 10 years from now we're getting to pay but we'd have paid. and that we all skills accurate future projections usually are. within the meantime, we're all paying more today, and we're getting to pay even more in 2014 and more in 2015 and 2016. People are getting to be pretty upset that .


Those three myths, that health care reform is merely getting to affect the uninsured, that it won't affect Medicare beneficiaries, which ObamaCare goes to scale back healthcare costs, are just that. they're myths. There's nothing to them.

It's really important that you simply concentrate to what's happening with health care reform, because there are more changes that are coming as we undergo this year, 2013. Knowing the way to position yourself in order that you're within the right spot to be ready to make the simplest decision at the start of 2014 goes to be really important for everyone .