Health Care Reform - Busting The 3 Biggest Myths Of ObamaCare
In the last couple of months we’ve witnessed a number of Health Care Reform rules and regulations that have been released through Health and Human Services Department. Health and Human Services Department. Each time it is reported by the media of it, and all sorts of stories are published by The Wall Street Journal, the New York Times, and the news channels on the television discuss the issue. The analysts begin to talk of the benefits and drawbacks and what this means for people and businesses.
The issue is that a writer was looking at the regulations and wrote an article about the regulation. Other writers then begin making use of the material from the first article , and then rewriting them to make it fit their own. As the information is distributed widely the actual regulations and rules are altered and misinterpreted and what shows on the news media isn’t the actual meaning of what regulations state.
There’s a lot that’s misunderstood about the issues in the context of ObamaCare and one of the things I’ve observed in conversations with my clients is that there’s a underlying mythology that people have gathered about the health reforms that are simply false. Because of what they’ve heard from the media, they believe that these myths are factual.
Today we’ll be talking about three myths that I hear the most often. Many people aren’t convinced by the myths mentioned, however a lot do, and some are unsure of what they be convinced of, which is why it’s worth the dispelling of these myths right now.
The first is that health reform will only affect people who aren’t insured. The second reason refers to Medicare Benefits and Medicare program will not be affected by the health reform. And the final one is that the health reform will help lower the cost of healthcare.
Health Care Reform Only Affects Uninsured
Let’s take a look at the primary misconception about health reform that only affects uninsured persons. In many of the discussions I have with my clients they use a variety of phrases that they make use of: “I already have coverage, so I won’t be affected by ObamaCare,” or “I’ll just keep my grandfathered health insurance plan,” and the last one — and I’m able to allow them a some leeway because one of the things they’re saying is actually true “I have group health insurance, so I won’t be affected by health care reform.”
The reality is that the health reform law is going to impact all of us. In 2014, we’ll be offered a new array of health plans. the plans come with very substantial benefits, with a lot of additional options that existing plans currently don’t provide. These new plans will come at a higher priced.
Health Care Reform’s Effect On People With Health Insurance
The people who have health insurance plans are scheduled to be transferred to the new plans in 2014. Therefore, the covered are directly affected because the health insurance plans they currently have are being eliminated and will be integrated into the brand new ObamaCare plan in 2014.
Health Care Reform Effect On The Uninsured
The uninsured face another issue, which is that if they don’t have health insurance coverage in 2014, they will be subject to penalties for not having insurance. Many of the healthy people who are uninsured will take a look at the penalty and think, “Well, the penalty is 1% of 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’ll just take the penalty.” However, regardless of the outcome they’ll have a direct impact from the health reforms in the health sector. The mandate will affect both the insured and the uninsured.
Health Care Reform Effect On People With Grandfathered Health Plans
The people who have health insurance plans with grandfathered benefits aren’t going to suffer directly from the reforms to health care. However, because of the time duration of their grandfathered health plans the plan will be made the plans more expensive as they realize that they have plans accessible now that they can easily switch to and that offer greater benefits that are more beneficial to anyone with medical issues they suffer from.
For those who remain in the grandfathered plans the number of people who are enrolled in the plan will begin to shrink and when that is the case the price of those old health plans that were grandfathered in will rise more quickly than they do today. Thus, those in grandfathered health plans are also going to be affected by ObamaCare.
Health Care Reform Effect On People With Group Health Insurance
The final one, the small group market, will be most directly affected by the health care reform. Although the new regulations on health care mostly affect medium and large businesses, as well as those with 50 or more employees, smaller businesses are also affected even though they’re not subject to ObamaCare in its own.
The thing that polls and surveys are beginning to reveal is that a portion of the companies with less than 10 employees will be looking carefully at their options to eliminate health insurance altogether and stop having it as a cost for the business. Instead, they’ll make their employees purchase health insurance through marketplaces for health insurance.
Indeed, some of the insurance companies are declaring that they expect approximately 50% of small companies with fewer than 10 employees will drop their health insurance coverage between 2014 between 2014 and 2016. This will have a significant impact on everyone who are covered by group health insurance and especially one of those small-sized companies which have dropped health insurance coverage.
There aren’t just the uninsured who will be affected by the health care reform. Everyone will be affected.
Health Care Reform Will Not Affect Medicare
The second myth was that health reform wouldn’t affect Medicare. It’s kind of hilarious because right from the beginning the biggest cuts specifically targeted those who were part of the Medicare program. If you take a look at Medicare’s share of the federal budget, you will see that in the year 1970, Medicare was just 4 percent from total U.S. federal budget, and by the year 2011 it was 16 percent of the overall budget.
If we take a look over the past decade, which spans from 2002 until the year 2012 Medicare is among the top growing component of the major entitlement programs offered by the federal government. it has grown by nearly 70% over that time of time.
Due to the size of Medicare is and how quickly it’s expanding, it’s one of the most important programs ObamaCare attempts to keep a check on, to ensure it never cause financial ruin to this U.S. Medicare is going be affected, and the first cuts to Medicare are already estimated at $716 billion.
Medicare Advantage Cuts And The Effects
Of the $716 billion cut The Medicare Advantage program gets cut the most and will experience the largest of the negative effects. What this will cause is to increase the costs that people are required to cover for Medicare Advantage insurance plans and decrease the benefits offered by these plans.
Increased Medicare Advantage Costs
In the present, a majority of people are choosing Medicare Advantage plans because they come with no costs for premiums. If they are offered a choice of Medicare plan, many see it as a simple decision because it’s a no-cost program “Sure, I get Medicare benefits, I don’t pay anything for it; why not.” In the coming months, they’ll be seeing Medicare costs begin to rise up from a low of $0 to $70 or $80, $90, $100. We’ve seen this already in certain Blue Cross Medicare Advantage plans this year. The situation will become worse as we go further into the future.
Reduced Medicare Advantage Benefits
To limit the cost of premiums What a lot of Medicare Advantage plans make is to increase copayments, raise the deductibles, and alter the rates of co-insurance. To keep the cost of premiums low, they’ll shift more of the cost on Medicare Advantage beneficiaries. The increased cost of premiums as well as the reduced advantages are exactly what you’re expected to see in the Medicare Advantage plans.
Fewer Medicare Physicians
If that weren’t enough, when Medicare doctors start receiving less and less reimbursements for Medicare Advantage beneficiaries They’ll stop accepting new Medicare Advantage beneficiaries. The number of doctors who can help the people who are with Medicare decreasing in the same way, unless some changes are made in the the five years ahead. This means that Medicare will be affected and is likely to be significantly affected by the health reform. Everyone’s waiting on the edge in anticipation of what’s coming up.