Medical Reform - Smashing The 3 Largest Myths Of ObamaCarePosted by Buck MacKay on July 25th, 2021 Over the previous few months we've seen many Health Care Reform rules and regulations currently being introduced by the Health and Human Services Department. Every time that occurs, the media gets retain it and all kinds of articles or blog posts are written in the Wsj, the New York Times, plus the TV network news packages talk about it. All the pros start talking about the pros and cons, and what it means for you to businesses and individuals. The challenge with this is, many times a single writer looked at the regulation, and wrote a piece about this. Then other writers start employing pieces from that first post and rewriting parts to match their article. By the time the details gets widely distributed, the exact regulations and rules receive twisted and distorted, and exactly actually shows up in the music sometimes just doesn't absolutely represent the reality of exactly what the regulations say. There's a lot of uncertainty about what is going on with ObamaCare, and one of the things that I've noticed in discussions with customers, is that there's an underlying range of myths that people have got about health care reform that just aren't true. Although because of all they've noticed in the media, people believe these myths are actually accurate. Today we're going to talk about about three myths I hear most frequently. Not everybody believes these common myths, but enough do, and the like are unsure what to believe, so it warrants dispelling these types of myths now. The first one is health care reform only impacts uninsured people. The second some may be that Medicare benefits plus the Medicare program isn't those affected by health care reform. And the last one is that healthcare reform is going to reduce the expenses of healthcare. Health Care Reform Only Affects Uninsured Take a look at look at the first myth in relation to health care reform only which affects uninsured people. In website of the discussions I have together with clients, there are several expressions each uses: "I already have coverage, thus i won't be affected by ObamaCare, " or "I'll just keep my grandfathered health insurance strategy, " and the last a single - and this one I could give them a little bit of leeway, due to the fact part of what they're telling is true -- is "I have group health insurance, so I won't be affected by health care reform. " Well, the reality is that will health care reform is actually going to affect everybody. Starting inside 2014, we're going to have a completely new set of health plans, and others plans have very wealthy benefits with lots of extra features the existing plans today may offer. So these completely new plans are going to be higher cost. Medical care Reform's Effect On People With Medical health insurance People that currently have health insurance shall be transitioned into these fresh plans sometime in 2014. Hence the insured will be directly battling with this because the health programs they have today are going aside, and they will be mapped to a new ObamaCare plan throughout 2014. Health Care Reform Effects on The Uninsured The uninsured have an additional issue in that if they don't get health insurance inside 2014, they face a mandate penalty. Some of the healthy uninsured are going to look at that fee and say, "Well, often the penalty is 1% involving my adjusted gross income; I make , 000, so I'll pay a 0 penalty or , 000 for health insurance. In that case I will just take the penalty. " But either way, they will be instantly affected by health care reform. Over the mandate it affects the particular insured as well as the uninsured. Healthcare Reform Effect On People With Grandfathered Health Plans People that have grandfathered health insurance plans are not going to become directly affected by health care change. But because of the life period of their grandfathered health approach, it's going to make those options more costly as they discover that you will find plans available now that they can simply transfer to that have a wealthier set of benefits that would be considerably more beneficial for any chronic health issues they may have. For people who time in those grandfathered plans, typically the pool of subscribers from the plan are going to start to shrink, and as that happens, the cost of those grandfathered health insurance plans boosts even faster than they are now. Therefore , people in grandfathered health plans will also be depending ObamaCare. Health Care Reform Impact on People With Group Health Insurance The past one, the small group software industry, is going to be the most notably impacted by health care reform. Even though the health-related reform regulations predominantly have an impact on large and medium-sized firms, and companies that have 40 or more employees, smaller organizations will also be affected, even though they're exempt from ObamaCare itself. Exactly what many surveys and polls are starting to show is the fact some of the businesses that have twelve or fewer employees will 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 workers get health insurance through the medical insurance exchanges. In fact , some of the insurers are now saying they anticipate that up to 50% connected with small groups with 15 or fewer employees will likely drop their health insurance plan sometime between 2014 and 2016. That will have a very big effect on all people who have team health insurance, especially if they're a single of those small companies which drop health insurance coverage. It's not just uninsured that are going to have health care reform, everybody will be impacted. Health Care Reform Probably Affect Medicare The next fantasy was that health care reform would not affect Medicare. Zygor is kind of funny simply because right from the very get-go, the most known cuts were specifically targeting the Medicare program. Whenever you look at Medicare's portion of the actual federal, you can see that in the 1970s, Medicare was 4% on the U. S. federal funds, and by 2011, it had harvested to 16% of the national budget. If we look at it over the last 10 years, from 2002 to help 2012, Medicare is the speediest growing part of the major entitlement programs in the federal government, and it is 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 on, so it doesn't bankrupts the actual U. S. Medicare will be impacted, and in fact the initial cuts to Medicare are actually set at about 6 billion. Medicare Advantage Cuts Plus the Effects Of that 6 thousand cut, the Medicare Advantage system gets cut the most, and can see the bulk of the effects. Exactly what that's going to do is enhance the premiums people pay for their own 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 have got zero premium. When offered a choice on Medicare ideas, they view it as an simple choice because it's a free program for them, "Sure, My spouse and i get Medicare benefits, We don't pay anything for doing this; why not. " Now they're going to see Medicare premiums set out to climb, and go by zero to , , , 0. We've previously seen that with some of the Blue Cross Medicare Advantage plans this year. It's going to get worse once we go forward in the future. Reduced Medicare Benefits In order to minimize often the premium increases, what numerous Medicare Advantage plans will do will be increase the copayments, increase the deductibles, and change the co-insurance prices. In order to keep the premiums along, they'll just push numerous costs onto the Medicare advantage plans recipients. Increased premiums and reduced benefits are precisely what we're going to see coming in Medicare Advantage plan. Unitedhealthcare Reviews And then if that had not been bad enough, as Medicare physicians begin receiving lower as well as lower reimbursements for Medicare advantage plans people, they're going to stop getting new Medicare Advantage recipients. We're going to see the pool of health professionals to support people in Medicare health insurance starting to shrink as well, except if changes are made over the course of another five years. So Medicare insurance is going to be affected, and it's getting affected dramatically by health care reform. Everybody's kind of on pins and needles, waiting to see after that happen there. Health Care Reform Will Reduce Healthcare Costs The last one, and probably the biggest myth about health-related reform, is everybody thinking that ObamaCare will reduce health care costs. That's completely garbage. Early on in the process, when they have been trying to come up with the rules and also regulations, the emphasis and another of the goals for reform was to reduce healthcare prices. But somewhere along the series, the goal actually shifted from cost reduction to help regulation of the health insurance market. Once they made that transition, they pushed cost cutbacks to the back burner. There are some modest cost reduction components with ObamaCare, but the real importance is on regulating medical health insurance. The new plans, for example , possess much richer benefits compared to many plans today: livlier benefits means richer costs. Health Care Reform Subsidies: Will certainly They Make Plans Affordable? Many people hope, "The subsidies are likely to make health insurance plans cheaper, won't they? " Of course, in some cases the subsidies will make the plans affordable for anyone. But if you make a lot of, the affordable plans tend to be suddenly going to become costly and can cost thousands of dollars considerably more over the course of a year. Will a subsidy make it affordable or not affordable is really subject to argument at this point in time. We're going to ought to actually see what the charges look like for these plans. Brand new Health Care Reform Taxes Handed over To Consumers Then in which whole ton of new healthcare reform taxes that have been additional into the system to help spend on ObamaCare. That means everybody that has a health insurance plan, whether it's in a large group, a little group, or just as an unique, is going to be taxed in order to purchase the cost of reform. Health care change adds various taxes about health care that insurance companies need to collect and pay, however they're just going to pass it right through to people, the consumer. Mandate Won't Minimize Uninsured Very Much During the preliminary years of health care reform, the particular mandate is actually pretty weak. The mandate says which everyone must get medical insurance or pay a penalty (a tax). What that's going to complete is make healthy persons just sit on the sidelines and wait for the mandate to commence the point where it finally forces them to buy health insurance. Those with chronic health conditions that am not able to get health insurance previously, are all going to jump into healthcare at the beginning of 2014. At the end of which year, the cost for the options is going to go up in 2015. I can guarantee that that's going to come about, because the young healthy consumers are not going to be motivated to get into typically the plans. They won't see the benefit from joining an expensive plan, whereas the chronically ill individuals are going to get into the options and drive the costs upward. Health Care Reform's Purpose Is simply Matter Of Semantics The last component of this is, one of the key items - and it's funny, I could see it for the first two years, 2010, and '11 : one of the key things that has been listed in the documentation from Obama administration was: Health Care Change would help reduce the cost we would see in the future when we do nothing today. That was accentuated over and over again. That was how they presented health care cost reduction, that this would reduce the future charges. Not today, but it would certainly reduce what we would fork out in the future if we did practically nothing about it now. Well, which great, 10 years from today we're going to pay less than we may have paid. And we all know how accurate future projections are actually. In the meantime, we're all paying a lot more today, and we're going to spend even more in 2014 and even more in 2015 and 2016. People are going to be pretty aggrieved about that. Conclusion Those a few myths, that health care reform is only going to affect the uninsured, so it won't affect Medicare beneficiaries, and that ObamaCare is going to reduce healthcare costs, are just this. They are myths. There's nothing in their eyes. It's really important that you pay attention to precisely happening with health care reform, because there are more changes which might be coming as we go through this year, 2013. Knowing how to position yourself so that you're in the appropriate spot to be able to make the very best decision at the beginning of 2014 will likely be really important for everybody.Like it? Share it! More by this author |