Medical care Reform - Busting The 3 Biggest Myths Of ObamaCarePosted by Buck MacKay on July 25th, 2021 Within the last few few months we've seen plenty of Health Care Reform rules and regulations being introduced by the Health and Man Services Department. Every time that takes place, the media gets thinking of getting it and all kinds of content articles are written in the Wall Street Journal, the New York Times, as well as the TV network news programs talk about it. All the industry analysts start talking about the pros and also cons, and what it means to businesses and individuals. The challenge with this is, many times 1 writer looked at the rules, and wrote a piece regarding it. Then other writers begin to use pieces from that first write-up and rewriting parts to adjust to their article. By the time the details gets widely distributed, typically the regulations and rules receive twisted and distorted, and what actually shows up in the music sometimes just doesn't truly represent the reality of the actual regulations say. There's a lot of misunderstanding about what is going on with ObamaCare, and one of the things that I've truly noticed in discussions with clientele, is that there's an underlying list of myths that people have picked up about health care reform which just aren't true. Although because of all they've been told in the media, people believe these myths are actually true. Today we're going to talk about several myths I hear most frequently. Not everybody believes these myths, but enough do, yet others are unsure what to feel, so it warrants dispelling all these myths now. The first one is that health care reform only impacts uninsured people. The second you are that Medicare benefits and also the Medicare program isn't going to be affected by health care reform. Then the last one is that healthcare reform is going to reduce the charges of healthcare. Health Care Change Only Affects Uninsured Take a look at look at the first myth concerning health care reform only impacting on uninsured people. In a great deal of the discussions I have with clients, there are several expressions each uses: "I already have coverage, so that i won't be affected by ObamaCare, " or "I'll just retain my grandfathered health insurance strategy, " and the last 1 - and this one We can give them a little bit of leeway, mainly because part of what they're saying is true -- is "I have group health insurance, and so i won't be affected by health care reform. " Well, the reality is that health care reform is actually likely to affect everybody. Starting inside 2014, we're going to have a totally new set of health plans, and people plans have very loaded benefits with lots of extra features how the existing plans today avoid offer. So these brand-new plans are going to be higher cost. Medical care Reform's Effect On People With Health care insurance People that currently have health insurance will be transitioned into these new plans sometime in 2014. Hence the insured will be directly impacted by this because the health programs they have today are going away, and they will be mapped in to a new ObamaCare plan with 2014. Health Care Reform Influence on The Uninsured The uninsured have an additional issue in if they don't get health insurance within 2014, they face a new mandate penalty. Some of the healthful uninsured are going to look at that penalty and say, "Well, typically the penalty is 1% connected with my adjusted gross income; My partner and i make , 000, so I'll pay a 0 penalty or , 000 for health insurance. In that case Factors . just take the penalty. inch But either way, they will be straight affected by health care reform. With the mandate it affects the actual insured as well as the uninsured. Health-related Reform Effect On People With Grandfathered Health Plans People that have grandfathered health insurance plans are not going to always be directly affected by health care change. But because of the life period of their grandfathered health plan, it's going to make those strategies more costly as they discover that there are plans available now that they can effortlessly transfer to that have a wealthier set of benefits that would be a lot more beneficial for any chronic issues of health they may have. For people who lodge at those grandfathered plans, the actual pool of subscribers in the plan are going to start to reduce in size, and as that happens, the cost of all those grandfathered health insurance plans increase even faster than automobile. Therefore , more info in grandfathered health plans will also be relying on ObamaCare. Health Care Reform Impact on People With Group Health Insurance The very last one, the small group market place, is going to be the most notably afflicted with health care reform. Even though the medical care reform regulations predominantly have an impact on large and medium-sized organizations, and companies that have 60 or more employees, smaller businesses will also be affected, even though these kinds of are exempt from ObamaCare itself. Exactly what many surveys and polls are starting to show is the fact that some of the businesses that have twelve or fewer employees will certainly look seriously at their own option to drop health insurance insurance policy coverage altogether, and no longer understand it as an expense of the company. Instead, they will have their personnel get health insurance through the medical insurance exchanges. In fact , some of the providers are now saying they anticipate that up to 50% regarding small groups with twelve or fewer employees will likely drop their health insurance program sometime between 2014 and also 2016. That will have a very substantial effect on all people who have set health insurance, especially if they're a single of those small companies in which drop health insurance coverage. Difficult just uninsured that are going to be affected by health care reform, everybody will probably be impacted. Health Care Reform Will never Affect Medicare The next fable was that health care reform would not affect Medicare. This one is kind of funny because right from the very get-go, the highest cuts were specifically directed at the Medicare program. Whenever you look at Medicare's portion of the entire federal, you can see that in 1970, Medicare was 4% on the U. S. federal funds, and by 2011, it had harvested to 16% of the federal government budget. If we look at it throughout the last 10 years, from 2002 to 2012, Medicare is the speediest growing part of the major entitlement programs in the federal government, and it's really grown by almost 70 percent during that period of time. Because of how big Medicare is and how rapid it's growing, it's one of the key programs that ObamaCare is trying to get a handle with, so it doesn't bankrupts the particular U. S. Medicare will likely be impacted, and in fact the first cuts to Medicare seem to have been set at about 6 billion. Medicare Advantage Cuts Along with the Effects Of that 6 thousand cut, the Medicare Advantage plan gets cut the most, and can see the bulk of the effects. Just what that's going to do is boost the premiums people pay for their Medicare Advantage plans, and reduce the advantages of those plans. Increased Medicare advantage plans Costs Right now, many people choose Medicare Advantage plans because they include zero premium. When given a choice on Medicare options, they view it as an simple choice because it's a free program for them, "Sure, My partner and i get Medicare benefits, I actually don't pay anything because of it; why not. " Now they may see Medicare premiums set out to climb, and go from zero to , , , 0. We've actually seen that with some in the Blue Cross Medicare Advantage options this year. It's going to get worse once we go forward in the future. Reduced Medicare Advantage Benefits In order to minimize the premium increases, what many Medicare Advantage plans will do is actually increase the copayments, increase the deductibles, and change the co-insurance fees. In order to keep the premiums straight down, they'll just push more of the costs onto the Medicare Advantage recipients. Increased premiums and reduced benefits are precisely what we're going to see coming in Medicare advantage policies plan. Fewer Medicare Physicians And then if that was not bad enough, as Medicare health professionals begin receiving lower and also lower reimbursements for Medicare advantage policies people, they're going to stop using new Medicare Advantage recipients. We will see the pool of medical doctors to support people in Medicare health insurance starting to shrink as well, except when changes are made over the course of the next five years. So Medicare insurance is going to be affected, and it's those affected dramatically by health care reform. Everybody's kind of with pins and needles, waiting to see after that happen there. Health Care Change Will Reduce Healthcare Costs The last one, and possibly the biggest myth about healthcare reform, is everybody reasoning that ObamaCare will reduce medical costs. That's completely hogwash. Early on in the process, when they were being trying to come up with the rules in addition to regulations, the emphasis and something of the goals for reform was to reduce healthcare prices. But somewhere along the brand, the goal actually changed from cost reduction to help regulation of the health insurance industry. Once they made that move, they pushed cost savings to the back burner. There are some tiny cost reduction components within ObamaCare, but the real emphasis is on regulating health coverage. The new plans, for example , have much richer benefits as compared to many plans today: thicker benefits means richer price ranges. Health Care Reform Subsidies: Will probably They Make Plans Affordable? A lot of people hope, "The subsidies will certainly make health insurance plans more affordable, won't they? " Of course, in some cases the subsidies will help to make the plans affordable for people. But if you make an excessive amount of, the affordable plans tend to be suddenly going to become expensive and can cost thousands of dollars considerably more over the course of a year. Will some sort of subsidy make it affordable or not affordable is really subject to controversy at this point in time. We're going to need to actually see what the rates look like for these plans. Brand-new Health Care Reform Taxes Given to To Consumers Then there's a whole ton of new health-related reform taxes that have been added in into the system to help buy ObamaCare. That means everybody who may have a health insurance plan, can definitely in a large group, a compact group, or just as an personal, is going to be taxed in order to pay for the cost of reform. Health care reform adds various taxes about health care that insurance companies will need to collect and pay, yet they're just going to pass it right through to us, the consumer. Mandate Won't Lessen Uninsured Very Much During the initial years of health care reform, typically the mandate is actually pretty vulnerable. The mandate says that everyone must get medical insurance or pay a penalty (a tax). What that's going to accomplish is make healthy persons just sit on the sidelines and wait for the mandate to start the point where it finally causes them to buy health insurance. Individuals with chronic health conditions that couldn't get health insurance previously, are generally going to jump into medical at the beginning of 2014. At the end of this year, the cost for the programs is going to go up in 2015. I can guarantee that that's going to happen, because the young healthy everyone is not going to be motivated to get into often the plans. They won't see the good thing about joining an expensive plan, whilst the chronically ill individuals are going to get into the ideas and drive the costs upward. Health Care Reform's Purpose Is Just A Matter Of Semantics The last area of this is, one of the key issues - and it's funny, I could see it for the first two years, 2010, and '11 - one of the key things that seemed to be listed in the documentation from Obama administration was: Health Care Change would help reduce the cost that people would see in the future whenever we do nothing today. That was highlighted over and over again. That was how they introduced health care cost reduction, which it would reduce the future expenses. Not today, but it might reduce what we would pay out in the future if we did almost nothing about it now. Well, that's great, 10 years from at this point we're going to pay less than organic beef have paid. And we all know the way accurate future projections usually are. In the meantime, we're all paying much more today, and we're going to shell out even more in 2014 and even more in 2015 and 2016. People are going to be pretty upset about that. Conclusion Those three myths, that health care reform is only going to affect the uninsured, that this won't affect Medicare beneficiaries, and that ObamaCare is going to lower healthcare costs, are just that will. They are myths. There's nothing in their eyes. It's really important that you pay attention to can be happening with health care reform, because there are more changes that are coming as we go through the 2010 season, 2013. Knowing how to position your self so that you're in the correct spot to be able to make the ideal decision at the beginning of 2014 will likely be really important for everybody.Like it? Share it! More by this author |