ObamaCare’s impact on health costs.
“Obamacare is still struggling to sign up young people. In order to offset the high cost of the older, and probably less healthy people who are joining Obamacare plans, the White House must coerce a sufficient number of thirty-somethings to also join. Problem is, the health plans are too pricey to make economic sense for many young adults.”
“Many supporters of ObamaCare insisted that the health insurance exchanges created by the law would result in consumers having a greater choice among insurance policies and lower prices.
This study tests those claims by examining policies on the exchanges in metropolitan areas across 45 states for a single 27-year-old and a 57-year-old couple. It then compares those with the policies available in those same areas on eHealthInsurance.com (eHealth) and Finder.healthcare.gov (Finder) in 2013.”
“An estimated 30 million Americans are expected to gain health insurance through the Affordable Care Act (ACA), and a healthy and sizable workforce will be needed to meet the increased demand. The health care workforce is already facing a critical shortfall of health professionals over the next decade. The ACA breaks the promises of access and quality of care for all Americans by escalating the shortage and increasing the burden and stress on the already fragile system. The ACA’s attempts to address the shortage are unproven and limited in scope, and the significant financial investment will not produce results for years due to the training pipeline. With the ACA’s estimated 190 million hours of paperwork annually imposed on businesses and the health care industry, combined with shortages of workers, patients will be facing increasing wait times, limited access to providers, shortened time with caregivers, and decreased satisfaction. The health care workforce is facing increased stress and instability, and a major redesign of the workforce is needed to extend care to millions of Americans.”
“Earlier today, Marilyn Tavenner of the Centers for Medicare and Medicaid Services announced that “more than 6 million Americans have signed up for coverage through the Health Insurance Marketplaces since October 1, thanks to the Affordable Care Act.” Given all of the technical problems that dogged healthcare.gov last October, this is an impressive turnaround. But it sheds little light onto the two questions most analysts are focused on. First, how many of those signing up have paid their first month’s premium, thereby activating coverage? And second: How many of those with coverage were previously uninsured? At this point, we have no definitive answers.”
[T]he MLR caps will also limit innovation. Right now, expenses that are on a pre-approved, government list of “activities that improve health care quality” are not included in the cost of administration and so don’t count against the 20 percent cap on what plans get to spend on overhead. If a health plan comes up with a new business approach that it believes improves quality and outcomes, it will be forced to count the costs against its allowable profits. It can’t incorporate the cost into the total money it spends on healthcare if the new scheme isn’t on the government list.”
“In recent weeks, I’ve talked to a handful of large healthcare firms and medical practices that offer specialty medical services. I asked them what kinds of prices they’re soliciting from the new health plans now taking shape under Obamacare. These providers said that they’re demanding, and in some cases securing, pretty rich reimbursement rates from the new, Obamacare health plans.”
“The High Cost Plan Excise Tax, which is often referred to as the ‘Cadillac Tax’ is one of the revenue raising provisions in the 2010 Patient Protection and Affordable Care Act. The excise tax is calculated by comparing the cost of an employer-sponsored plan (which includes premiums paid by the employer and/or employee as well as any contributions into
health accounts such as health savings accounts of flex savings accounts) to a benchmark, which will be adjusted every year based on the Consumer Product Index (CPI). Any amount above the benchmark is taxed at 40 percent; this tax is levied on the health insurance company but is generally understood to be passed onto the consumer, or firm purchasing that plan.”
“Obamacare is imposing a minimum benefit for insurance that is in excess of what many consumers purchase on their own today. And the law is imposing many new rules on what insurance companies may and may not take into account when setting premiums. There is no experience anywhere indicating that these kinds of changes will lower premiums. And there’s an abundance of evidence from state experiments indicating that these changes will increase premiums, and probably quite substantially.”
“Mr. Alito pointed out that young, healthy adults today spend an average of $854 a year on health care. ObamaCare would require them to buy insurance policies expected to cost roughly $5,800. The law, then, isn’t just asking them to pay for ‘the services that they are going to consume,’ he continued. ‘The mandate is forcing these people to provide a huge subsidy to the insurance companies . . . to subsidize services that will be received by somebody else.'”
“Those two coverage areas – the individual and small group markets – face the biggest rule and cost changes next year, when the main provisions of the Affordable Care Act finally kick in. Early rate proposals around the country are a mix of steep hikes and modest increases.”