Obamacare's Side Effect For The Health Insurance Company Industry
Health Insurance Companies And The Quality Of Their Policies Will Suffer
The Massachusetts healthcare law is a preview of Obamacare since the national law was based on the Massachusetts law. Taking a look at the Massachusetts law, it did the easy part of expanding subsidized-insurance coverage.
But it has failed in doing the hardest part: controlling costs and showing that spending improves people's health. Like Obamacare, the Massachusetts law also has an individual mandate to buy insurance. Since not everyone can afford to do this, the poor are covered by Medicaid to make sure there is greater expansion of coverage.
And for Medicaid to cover the poor, Massachusetts has to pay for those three times above the federal poverty line. This has raised the percentage of those who are covered from 87.5% to 95.2%.
However, there has not been much improvement to quality of healthcare. Access to treatment has risen only by a small percentage, ER remains as crowded as ever, and health costs continue to soar.
These higher costs has made government pour much of its budget towards healthcare and away from such areas as schools, police, roads, prisons, and lower taxes. Healthcare is now 35% of the state budget, up from 16% from some 20 years before. Attacking insurance companies is pointless since they are the middleman. It is the doctors and hospitals who are charging the high amount. And so limiting the premium increases without controlling the providers will bankrupt the insurance companies. This will happen with Obamacare.
- Although the number of uninsured people have increased, it is due to this reason that the law will not work. Those who are uninsured will be covered by government insurance; the expansion of Medicaid. This will be too expensive to the federal government to the point where its costs are unsustainable. Plus this "free" government insurance will be subject to overuse by those insured by it. This will disrupt, clog, and interfere access while spiraling up the healthcare costs and premiums. All of this will make certain the worse standard of care for all patients.
- Republican Representative Mike Rogers of Michigan passionately and eloquently says in this video how this health plan will punish the 85% who have worked hard to get employed and get healthcare coverage, in order to cover the 15% who does not have health coverage. He says how the central idea of the new law is not American and will hurt all Americans in the end.
- The Center for Medicare and Medicaid Services (CMS) currently promotes something known as compliance-based medicine. CMS offers financial incentives to providers if they comply with certain government benchmarks that the CMS sets out. CMS then posts these compliance results of different providers/hospitals. The theory is that then, the patients can shop around by putting in their zip code and receive a list of hospitals with details on available services, care outcomes, and patient satisfaction ratings. However, a University of Michigan study published in Archives of Surgery journal (a monthly professional medical journal that publishes peer-reviewed clinical and research articles) revealed that a high compliance rate by a hospital did not correspond to a lower rate of post-operative deaths. In other words, there was no correlation between government compliance and quality care. The problem is that Obamacare uses this same compliance method. Beginning in 2013, hospitals that treat Medicare patients will be reimbursed at different rates based on performance; measured using the same quality indicators as discussed in the aforementioned study. This means the new law will compel physicians to perform procedures that do not necessarily benefit patients and result in less quality care.
- Principal Financial, who offered health plans for small businesses, is quitting the health insurance business due to Obamacare. Some insurers will no longer be offering child-only policies. More insurers are sure to follow, as Obamacare continues to make companies fold and as a result, less available choices for the patients.
- Obamacare expands Medicaid and adds some 16 million people into it. However the government already do not pay the doctors and hospitals who accept Medicaid their full payment due to its high cost. With even more people added, more providers will drop or refuse to accept Medicaid patients. This will force many of these patients to visit the emergency rooms for their medical care, which will overcrowd and overburden the ER. This will all result in worse access to providers and worse quality care as articulated by this Heritage Foundation study:
There Will Be Less Choice Of Doctors In Our Health Insurance
Researchers indicated that under Obamacare, there may be significant limits to accessing healthcare. The Massachusetts law is the model for Obamacare. And that state has chosen a healthcare company where only a few doctors will accept new patients, as well as the fact that the company did little to translate for 30,000 immigrants, most of whom had limited English abilities. The study was done by Harvard researchers, who are members of a group that advocates single-payer healthcare. The researchers said this could be a preview of Obamacare.
Obamacare will mean the very likely demise of many small physician practices. These solo or few partners of doctors will be forced to be part of the "vertical organization" approach that would promote hospitals and large group practices. Obama officials published an article in the journal, Annals of Internal Medicine that urged doctors to "embrace rather than resist change." As of 2008, 32% of American doctors practiced in solo or a two person offices.
Insurance Companies Will Stop Offering Policies
Companies like National health, Aetna, Principal, and John Alden have all told the New Mexico insurance division that they will no longer be offering individual or small group plans due to the heavy regulations of Obamacare.
One of the largest union-administered health insurance funds in New York is dropping their coverage for children of more than 30,000 low-wage home attendants due in part to Obamacare. Its provision of placing children on their parents' plan until 26 years old has broken what was already a strained resourced insurance.
Ultimately, the Democrats want to get rid of private health insurance companies and replace them with the government. This is their goal.