How Government Is Actually Making Health Care Less Affordable

If you research Obamacare exchanges in most states, for example, in the state of South Carolina, you’ll find that if you make around 13k per year, you can find a fully subsidized plan, such as the bronze plan available to SC residents. One might think this is a good thing, but think again. With a $5000+ deductible, plus a 40% co-pay, those who live from paycheck to paycheck still won’t be able to afford the average cost of a doctor visit. You will have a piece of paper in your hand that says you have insurance, but if you make $300 per week and have Obamacare, you’re still on the hook for a $150 doctor visit. Matter of fact, you would have to visit the doctor 33 times during the year before Obamacare kicks in, and then you’d still be on the hook for 40% of the cost. The unemployed, or those who make less than 100% of the poverty level, are not eligible for ANY subsidies. They will remain without health insurance.

Who exactly does this help? It certainly doesn’t help those who can’t afford to purchase insurance. It basically becomes a very expensive catastrophic policy, one which will require the policy holder to pay the first $5000+ of health care costs and 40% thereafter.

Obamacare doesn’t really help those who can’t afford insurance. All it does is transfer money from the U.S. Treasury directly into the coffers of the insurance and pharmaceutical companies, the same companies who were instrumental in writing the law.

It’s a big scam folks!

Combine this with all of the negative effects that go along with the law, such as forcing citizens to purchase a service they might not want or need, privacy implications, pushing folks out of their current insurance plans and onto the exchanges, the limiting of hours by employers to 29 per week, along with the detrimental effect it will have on the jobs’ market, it becomes pretty clear that Obamacare has been a huge disaster. What is also abundantly clear is that it does not deliver the benefits as promised.

The entire impetus for Obamacare was to make health insurance more affordable and allow those who cannot afford health insurance to be able to obtain it. Clearly, this law fails miserably in achieving that goal. Obamacare should be repealed now. It needs to replaced with a system that actually works (like personal Health Savings Accounts), before it does anymore damage to our health care system, and to our economy.

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  1. TLC says:

    As long as democrats control the White House and a only a slight minority in the Senate, obamacare isn’t going anywhere. I’m not even sure if a republican controlled government would end the program.

    The GOP needs to offer the public a good alternative. So far all I hear about are HSA–Health Savings Accounts. One alternative would be regional insurance cooperatives, much like is done with rural electricity.

    • Scott says:

      I do like the idea of regional insurance cooperatives, as long as we are talking “real” insurance and not some kind of quasi-socialist redistribution scheme, where preexisting conditions are covered, as an entitlement (individual mandate does the same).

      One problem we face is that health insurance has become more like a health maintenance plan. I have vehicle insurance but that doesn’t cover break jobs, oil changes, wiper replacement and other maintenance issues. Instead, it covers accidents and other major repairs, which is exactly how we need to approach health insurance.

      We need a true nationwide free market, which will allow insurance companies (or regional cooperatives) to sell inexpensive catastrophic plans. Routine doctor visits would be paid for out of your HSA. The ridiculous premiums, we are now forced to pay, will more than cover both the catastrophic insurance and HSA contributions, with lots of money left over.

      For me, that’s the ideal world. In the real world, lots of people won’t be able to participate and they will have to be provided health care. We can provide HC to those who really need it, without breaking the bank. Obamacare is an unholy alliance between insurance companies, hospitals, big pharma and corrupt politicians. We can do much better, at a much lower cost.

      • TLC says:

        I agree with everything you said. We must find ways to keep insurance costs as low as possible. Rates are driven up by maintenance and people rushing to the doctor every time they sneeze. People should have to pay out of pocket for for the small things. The people abusing the system should be the ones carrying a larger share of the burden.

        The best way to help people with little or no insurance is through private organizations. We can support the ones in already in existence or we can create cooperatives for that as well.

        There are doctors to whom you pay a monthly fee and they give you so many visits a year. Hospitals could do the same thing. There are a lot of options, some already in practice, and some not yet though about, but there are many that don’t include government.

  2. Scott says:

    Once preexisting conditions were mandated, the premiums (and care) of the unhealthy became heavily subsidized by the taxpayer. Before Obamacare, it was very expensive for someone with preexisting conditions to get coverage. Some were not able to be covered at all. That’s the way real insurance works. As an analogy, it would be like wrecking your vehicle, taking out collision insurance after the fact, then expecting the insurance company to pay. Currently under Obamacare, you cannot be “discriminated against” or charged more for having a preexisting condition. Apparently, the only preexisting condition that increases your rates is tobacco addiction.

    So, who actually pays for all the unhealthy people under Obamacare? For one, it’s to be paid for by healthy, younger citizens, who are now forced to purchase whatever insurance the government says they must purchase at whatever rate the government says they must pay (or pay an ever increasing fine). The 2nd source of funding for Obamacare comes from a myriad of new taxes that we are all forced to pay. The 3rd major source of funding comes from robbing Medicare of $716 Billion.

    What happens when the government can’t confiscate enough money from the young and healthy to pay the higher premiums required to insure the older, less healthy? You guessed it. There’s subsidies and bailouts for the Insurance companies.

    138 million people paid a total of $8.7 billion to a reinsurance fund. Only 16.3 million people were in the risk pool that this money was set aside to fund claims. The money in this fund was supposed to reimburse insurance companies 80 percent of the large claims. Instead the government paid the insurance companies 100 percent of the large claims. link

    Many do not qualify for Obamacare subsidies because they do not meet the minimum earning requirements, which in SC, is approximately 13K per year. You do understand how Obamacare works, right? Also, many of these people do not qualify for Medicare/Medicaid either, as the qualification criteria varies from state to state.

    Obamacare premium increases also vary from state to state. Minnesota is up 34-50% for most plans and Mississippi is up over 60%. This is a far cry from the promise of 20%-25% decreases in premiums and the lies about “You can keep your doctor”.

    Your argument against HSAs doesn’t hold water. The reason heath care costs became so out of control is because insurance became a health maintenance system, where no one really had any skin in the game. Most people had no idea what the costs were and didn’t even care. Their insurance covered it. Creating the monstrosity we call Obamacare was the opposite approach that should have been taken. It was a partisan bill, passed in the middle of night using a parliamentary gimmick, even though the majority of Americans opposed it. A much better approach would have been a true free market system, where HSAs were encouraged and companies/co-ops could have sold inexpensive catastrophic plans, tailored to the individual. There is no need to have insurance cover routine doctor office visits and basic heath care maintenance. If an individual wants to pay a premium for that kind of coverage, they can, but no one should be forced to do so.

    You mention that law makers decided anyone could simply walk into a hospital and receive the minimum amount of care that would keep them alive. I’m OK with that, but I don’t believe it required socialization of the insurance industry, forcing all citizens to purchase really expensive insurance policies they might not want or need.

    Hopefully, you followed along, read the cited references and you now understand that Obamacare is nothing more than socialized health insurance. It’s actually a terribly convoluted and unmanageable version of socialized heath insurance, destined (many would argue designed) to collapse. It’s an unholy public/private partnership that gives us the worst of both worlds. We get a sledgehammer mandate from an incompetent federal government, enforced by the heavy hand of the IRS, while the “too big to fail” Insurance companies skim from the top. A nice, tidy arrangement for everyone involved, except of course, the taxpayer, who is taking it on the chin.

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