Posts Tagged ‘The Affordable Care Act’

OBAMACARE vs. TRUMPCARE

The new proposed American Healthcare Act recently passed the House of Representatives, and now the Senate is working feverishly on it since Obamacare is quickly falling apart and needs something to replace it.  Its failure will hurt many people by eliminating health insurance.  Since the U.S. is stuck with Obamacare for now, let’s take a look at it.

 Obamacare covers full-time employees in companies that employ 50 or more people.  Because Obamacare is very expensive, businesses are very wary of hiring additional full-time employees (FTE) and have consequently reduced their numbers to under 50 FTE’s, as well as converting full-time positions to part-time, so as to keep FTE’s under 50.  Consequently, the number of jobs that the Federal government reports each month is baloney because: (a) most of those new jobs are part-time jobs, and (b) the major reason the unemployment rate has lowered is because, after the unemployed run out of benefits, they are no longer considered looking for work and therefore taken out of the unemployment statistics that are calculated by the Bureau of Labor Statistics.  Those statistics consequently then depict a lowered (phony) unemployment rate; but they have nothing to do with the creation of jobs.  An accurate portrayal of employment is the “Civilian Labor Force Participation Rate” which was at it’s lowest level since 1978 when President Obama left office in January 2017.

2. Because Obamacare has deductibles as high as $5,000 for individuals and $10-12,000 for families, as well as very high co-pays, most people with Obamacare that are not subsidized by the government, tend to not benefit from it because they can’t meet their deductibles.  In other words, Obamacare for many people is like not having medical insurance…and at some point many will find it cheaper to just pay the IRS a fine every year for not not having expensive medical insurance that ends up each year in not providing any benefits.

3. With Obamacare’s IPAD (Independent Payment Advisory Board) or “Death Panels” as Sarah Palin calls them, expensive state-of-the-art medical treatment is severely restricted under Obamacare, for the elderly.

4. Though sold to the American public as saving the average American family about $2,500/year, it’s turning out to be far more expensive to everyone except those receiving government subsidies.  There are many, many people paying at least double their previous premiums.  Some are paying as much as five times their former premiums.  Moreover, the Federal government has spent billions in rolling out the Federal and State websites and in providing subsidies.  If and when fully implemented, some forecast that Obamacare will bankrupt the country.

Obamacare or The Affordable Care Act is rife with unintended consequences, some of the major ones I cited above. But there are many more (tax on medical equipment, doctor shortage, etc.).  All of the unintended consequences were completely predictable.  I don’t think that any revisions of The Affordable Care Act would be sufficient to fix it.  It was incompetently  and sloppily prepared.  I believe that it must be replaced after (this time) being carefully thought out.  Moreover, it’s failing so rapidly that soon there won’t be health insurance.  The House has prepared its version of healthcare insurance, the Senate is debating theirs.  A House-Senate Conference Committee will then meet to iron out the differences between them. The resulting bill will then need to be voted on by both the House and the Senate and then go to the President for his revision or approval.  Whatever replaces Obamacare will be much cheaper as well as a vast improvement by allowing individuals to actually choose their own plan and doctors.

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OBAMACARE EQUALS NO HEALTH INSURANCE

Without subsidies, Obamacare or the Affordable Care Act (ACA) is unaffordable for most people.  Because it is so bad, many are looking for a President Trump to repeal and replace it with something much better and much less expensive.  When fully implemented in 2017, most Americans will not receive subsidies, which currently total about $60 billion/year.  Incidentally, because employers are not required to provide heath insurance for part-time workers, most new jobs being created  in the U.S. are part-time.  While this makes the unemployment roles look good, it has been a nightmare for most Americans.

I’ve been a supporter of universal healthcare since the year 2000 and, although I did not vote for President Obama in 2008 and 2012, I was hopeful that he would make good-healthcare-for-all a reality.  It did not cross my mind that Obama  would promulgate legislation that would destroy healthcare for many more Americans than it might help.  It also did not occur to me that healthcare premiums would double, triple, or even quadruple…and that deductibles would be as expensive as twelve thousands of dollars/year and co-pays double…and that all of these consequences combined would have the cumulative effect of destroying healthcare for tens of millions Americans.

Let’s give the creators of Obamacare the benefit of the doubt and assume that their hearts were in the right place, and that the passage of the ACA was not simply an attempt of government takeover of 1/6 of the U.S. economy.  The Affordable Care Act  has demonstrated that it is not affordable and is pitiful health insurance…it was poorly and incompetently designed and executed.  It reminds me of  the homily that “an elephant is a mouse designed by committee,” but in the case of the ACA, designed by one political party in Congress.  Okay, so it’s time scrap it and start over.  No problem!  Right?  Wrong!

But wasn’t Obamacare  designed to be like Romneycare, which was passed by Mitt Romney when he was governor of Massachusetts?  That’s what the politicians say to justify Obamacare, but that’s “Bull”.  Romneycare only affected about  8% of the Massachsetts population or about 6.5 million people.  Obamacare covers everyone except those exempted by the President, or about 300 million Americans.  Romneycare does not have penalties or mandates that Obamacare does. The very few good aspects of Obamacare, pre-existing conditions and coverage on parents insurance until age 26, can be simply added to new health insurance Federal legislation.

Although Obamacare  is clearly very bad and expensive health insurance, except for those receiving significant subsidies or exemptions,  the U.S. may end up being stuck with it. The reason is totally political.  One sixth of the economy is healthcare, soon to be controlled totally by politicians in 2017  The ACA or “Obamacare” is a politician’s dream come true but the average American’s nightmare.  With thousands of dollars required for deductibles before reimbursement by insurance companies kicks in, Obamacare for most ends up basically being only catastropic health-care insurance, which is important and necessary, but not something one should pay a lot of money for.

The final opportunity for Obamacare to be either repealed and replaced will come with the 2016 Presidential election.  Only if Republicans control the Presidency, the Senate and the House of Representatives will Obamacare be replaced with healthcare that is affordable and truly cares about people.

 

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