Posts Tagged ‘unintended consequences’

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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