Notes

Medical care Reform - Busting The 3 Greatest Myths Of ObamaCare

Within the last few few months we've seen a lot of Health Care Reform rules and regulations staying introduced by the Health and Man Services Department. Every time that is working in the background or an algorithm, the media gets hold of it and all kinds of posts are written in the Wsj, the New York Times, and also the TV network news plans talk about it. All the analysts start talking about the pros along with cons, and what it means to be able to businesses and individuals.


The issue with this is, many times one writer looked at the regulation, and wrote a piece about it. Then other writers begin to use pieces from that first post and rewriting parts to suit their article. By the time the info gets widely distributed, the actual regulations and rules acquire twisted and distorted, and what actually shows up in the mass media sometimes just doesn't really represent the reality of exactly what the regulations say.


There's a lot of false impression about what is going on with ObamaCare, and one of the things that I've truly noticed in discussions with clients, is that there's an underlying pair of myths that people have indexed about health care reform that just aren't true. However because of all they've heard in the media, people believe these myths are actually real.


Today we're going to talk about about three myths I hear mostly. Not everybody believes these misguided beliefs, but enough do, as well as others are unsure what to think, so it warrants dispelling these kinds of myths now.


The first one is always that health care reform only has an effect on uninsured people. The second some may be that Medicare benefits as well as the Medicare program isn't getting affected by health care reform. And then the last one is that healthcare reform is going to reduce the prices of healthcare.


Health Care Reform Only Affects Uninsured


A few look at the first myth in relation to health care reform only influencing uninsured people. In a large amount of the discussions I have using clients, there are several expressions each uses: "I already have coverage, thus i won't be affected by ObamaCare, very well or "I'll just keep my grandfathered health insurance program, " and the last 1 - and this one I am able to give them a little bit of leeway, mainly because part of what they're stating is true -- is "I have group health insurance, therefore i won't be affected by health care reform. "


Well, the reality is in which health care reform is actually about to affect everybody. Starting with 2014, we're going to have a completely new set of health plans, and those plans have very rich benefits with lots of extra features that this existing plans today may offer. So these new plans are going to be higher cost.


Healthcare Reform's Effect On People With Health coverage


People that currently have health insurance will be transitioned into these brand-new plans sometime in 2014. So the insured will be directly battling with this because the health programs they have today are going out, and they will be mapped into 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 in 2014, they face a new mandate penalty. Some of the healthy and balanced uninsured are going to look at that fine and say, "Well, the particular penalty is 1% regarding my adjusted gross income; I make $50, 000, so I'll pay a $500 penalty or $1, 000 for health insurance. In that case I will just take the penalty. inches But either way, they will be specifically affected by health care reform. With the mandate it affects typically the 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 possibly be directly affected by health care change. But because of the life spiral of their grandfathered health approach, it's going to make those programs more costly as they discover that there are plans available now that they can very easily transfer to that have a thicker set of benefits that would be considerably more beneficial for any chronic health problems they may have.


For people who time in those grandfathered plans, typically the pool of subscribers from the plan are going to start to reduce, and as that happens, the cost of people grandfathered health insurance plans increase even faster than automobile. Therefore , people in grandfathered health plans will also be relying on ObamaCare.


Health Care Reform Effect On People With Group Health Insurance


The last one, the small group market place, is going to be the most notably affected by health care reform. Even though the medical reform regulations predominantly impact large and medium-sized firms, and companies that have 40 or more employees, smaller companies 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 some of the businesses that have 15 or fewer employees will likely look seriously at their very own option to drop health insurance coverage altogether, and no longer have it as an expense of the corporation. Instead, they will have their staff members get health insurance through the health insurance exchanges.


In fact , some of the companies are now saying they predict that up to 50% involving small groups with 10 or fewer employees are going to drop their health insurance plan sometime between 2014 in addition to 2016. That will have a very big effect on all people who have group health insurance, especially if they're within a of those small companies which drop health insurance coverage.


Not necessarily just uninsured that are going to be affected by health care reform, everybody will be impacted.


Health Care Reform Will never Affect Medicare


The next myth was that health care change would not affect Medicare. This method is kind of funny due to the fact right from the very get-go, the most known cuts were specifically aimed towards the Medicare program. After you look at Medicare's portion of the actual federal, you can see that in 1970, Medicare was 4% with the U. S. federal budget, 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 best 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 large Medicare is and how rapid it's growing, it's on the list of key programs that ObamaCare is trying to get a handle on, so it doesn't bankrupts often the U. S. Medicare will likely be impacted, and in fact your initial cuts to Medicare have already been set at about $716 billion.


Medicare Advantage Cuts Plus the Effects


Of that $716 billion dollars cut, the Medicare Advantage course gets cut the most, and definitely will see the bulk of the effects. Exactly what that's going to do is boost the premiums people pay for their own Medicare Advantage plans, and reduce the key benefits of those plans.


Increased Medicare Advantage Costs


Right now, many people pick out Medicare Advantage plans because they get zero premium. When granted a choice on Medicare plans, they view it as an easy choice because it's a totally free program for them, "Sure, My spouse and i get Medicare benefits, We don't pay anything for it; why not. " Now they're going to see Medicare premiums start to climb, and go from zero to $70, $80, $90, $100. We've already seen that with some in the Blue Cross Medicare Advantage ideas this year. It's going to get worse once we go forward in the future.


Reduced Medicare advantage plans Benefits


In order to minimize the premium increases, what several Medicare Advantage plans will do is increase the copayments, increase the deductibles, and change the co-insurance rates. In order to keep the premiums decrease, they'll just push more of the costs onto the Medicare advantage policies recipients. Increased premiums as well as reduced benefits are just what we're going to see coming in Medicare Advantage plan.


Fewer Medicare Health professionals


And then if that wasn't bad enough, as Medicare health professionals begin receiving lower along with lower reimbursements for Medicare people, they're going to stop using new Medicare Advantage recipients. We'll see the pool of doctors to support people in Treatment starting to shrink as well, except when changes are made over the course of another five years. So Medicare health insurance is going to be affected, and it's going to be affected dramatically by health-related reform. Everybody's kind of on pins and needles, waiting to see what is going to happen t here .


Health Care Reform Will Reduce Healthcare Prices


The last one, and the biggest myth about health care reform, is everybody reasoning that ObamaCare will reduce medical care costs. That's completely hogwash. Early on in the process, when they were being trying to come up with the rules along with regulations, the emphasis and one of the goals for change was to reduce healthcare charges.


But somewhere along the series, the goal actually changed from cost reduction to help regulation of the health insurance industry. Once they made that move, they pushed cost deals to the back burner. There are some tiny cost reduction components throughout ObamaCare, but the real emphasis is on regulating health insurance. The new plans, for example , have much richer benefits compared to many plans today: livlier benefits means richer costs.


Health Care Reform Subsidies: Will They Make Plans Affordable?


Many men and women hope, "The subsidies will certainly make health insurance plans less costly, won't they? " Indeed, in some cases the subsidies will make the plans affordable for individuals. But if you make $1 excessive, the affordable plans usually are suddenly going to become expensive and can cost thousands of dollars much more over the course of a year. Will a new subsidy make it affordable or not affordable is really subject to discussion at this point in time. We're going to have got to actually see what the rates look like for these plans.


Fresh Health Care Reform Taxes Passed On To Consumers


Then there are a whole ton of new health care reform taxes that have been additional into the system to help spend on ObamaCare. That means everybody having a health insurance plan, be it 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 change adds various taxes on health care that insurance companies will have to collect and pay, nevertheless they're just going to complete it right through to us, the consumer.


Mandate Won't Lessen Uninsured Very Much


During the initial years of health care reform, the mandate is actually pretty weak. The mandate says that everyone must get health coverage or pay a penalty (a tax). What that's going to perform is make healthy persons just sit on the sidelines and wait for the mandate to get to the point where it finally makes 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 medical at the beginning of 2014.


At the end of this year, the cost for the ideas 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 the actual plans. They won't see the benefit from joining an expensive plan, although the chronically ill folks are going to get into the plans and drive the costs right up.


Health Care Reform's Purpose Is simply a Matter Of Semantics


The last area of this is, one of the key issues - and it's funny, I saw it for the first two years, 2010, and '11 instructions one of the key things that had been listed in the documentation from your Obama administration was: Health Care Change would help reduce the cost which we would see in the future when we do nothing today. That was accentuated over and over again. That was how they introduced health care cost reduction, that it would reduce the future fees. Not today, but it would certainly reduce what we would spend in the future if we did almost nothing about it now.


Well, which great, 10 years from at this point we're going to pay less than we may have paid. And we all know precisely how accurate future projections are commonly. In the meantime, we're all paying more today, and we're going to fork out even more in 2014 and more in 2015 and 2016. People are going to be pretty raise red flags to about that.


Conclusion


Those three 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 decrease healthcare costs, are just that. They are myths. There's nothing for them.


It's really important that you pay attention to precisely happening with health care change, because there are more changes which can be coming as we go through this current year, 2013. Knowing how to position yourself so that you're in the right spot to be able to make the finest decision at the beginning of 2014 will be really important for everybody.

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