Obamacare…A Man Made Disaster



When the liberals were pushing Obamacare, they made a lot of promises.  If we adopted OC, the sun would rise, the birds would sing, and we would all live to be 200.  Things have not turned out the way it was described.  In fact, nothing has turned out the way we were promised.  I thought now would be a good time to review some of the promises and the realities of Obamacare.

Obama, “If you like the insurance you have, you can keep it.”

Not quite accurate.  Because of the expanded coverage required, including free contraceptives and non cost effective procedures billed as preventative care.  Preventative care is a code word for liberals which means, we will force you to do procedures that cost a lot but do little good.  Insurance companies love preventative care, when it actually saves money.  They have on their own added preventative care to their policies.  Any new preventative care is merely window dressing and adds to the cost of already overly expensive coverage.

Because of these things, Obama’s first promise has been shattered.  Many companies find themselves looking at massive increases in the cost of policies and will have to decide whether to keep their coverage on employees or to just pay the penalty.  Former CBO head, Douglas Holtz-Eakin, did a study on his own that suggests as many as 35 million people could lose their employer paid health insurance.  If you include employees who have their hours cut, that number could easily reach 40 million.  Consider this, 40 million working Americans could lose their coverage in order to give free coverage to 32 million Americans.  Somehow, this makes sense to the liberal mind.

Let me give you an example.  Suppose a company has 1000 employees who averages 50k a year in salary.  The company was paying 80% of the coverage for their employees, who at the time of the signing of the bill, would cost 5k for a single employee and 12k for family coverage.  And let’s say 75% are families and 25% are single.  The total cost to the company is 10.25 million dollars of which they would pay 80% or 8.2 million dollars.  The penalty for not providing coverage is 8% of the total payroll, which would be 4 million.  That’s a savings of 6.25 million a year, right?  No. 

The IRS is estimating that by 2016 the cheapest Obamacare policy will cost 20k for a family.   Individual policies would cost a minimum of 8k.  Now let’s run those numbers.  750 families would cost 15 million dollars and 250 individual policies would cost 2 million.  80% of 17 million is 13.6 million, but the penalty would remain at 4 million.  The savings are now 9.6 million a year.  An unintended consequence of this policy of the liberals is that companies could begin to hire more older single men, should they decide to keep their insurance.  Not only would it save on insurance costs but those men would be less likely to be able to put in enough time to get a pension. 

And what happens when companies drop coverage?  Well, at 50k a year a single man would end up paying the bulk of the costs and will see his or her premiums rise 3 to 4 thousand a year.  A family could see an increase of their share rise dramatically as well. 

Obama:  Obamacare will save 2500 a year on premiums.

The previous answer proves this to be incorrect as policies have already climbed 3600 a year.

Obama:  If you like your doctor, you can keep him or her.

The only way this is true is if you pay the entire cost of the visit.  We are already seeing doctors who refuse to see Medicare and Medicaid patients, because of the artificially low reimbursement doctors receive.  Under Obamacare and Obama’s death panel, the IPAB board, those reimbursement rates will drop.  Liberals claim that there is no death panel, even though mammograms for women ages 40-49 will not be covered, or Avastin, the most popular breast cancer drug, will not be eligible.  Other procedures that are now not considered necessary since Obamacare has passed is screening for prostate cancer and HPV tests for cervical cancer.

You see, the only mechanism available to the IPAB board to reduce costs is the reduction of reimbursement fees.  That is how the real rationing occurs.  Say it costs a doctor and the hospital 4,000 dollars to do knee replacement surgery.  (Nurses, equipment, artificial knees)  IPAB can simply cut the reimbursement rate to 4,000 dollars and no doctor or hospital will ever perform that procedure on anyone with Medicaid, Medicare or one of the government exchanges. 

Obama:  Obamacare will cut the deficit.

Obama’s own GAO (General Accounting Office) now says Obamacare will INCREASE the deficit by 6.2 trillion dollars .  That’s huge swing.  And in reality, that figure is probably extremely low.  Obamacare has one huge flaw that will bankrupt America.  That is the preexisting conditions clause.  An individual can refuse to buy a comprehensive policy and pay the Obamacare tax.  Then if that person faces a costly disease or is involved in a bad accident, they can then buy a policy.  This would be a devastating scenario.  Insurance companies would have no choice but to raise premiums excessively high. 

And for young people 18 to 29, it means a huge rise in policy cost.  Before Obamacare, people 65 or older would pay 6 times more for coverage than an 18 year old.  Pelosi and the liberals placed a clause that allows for only a 3 to 1 cost ratio.  They can’t cut the cost of the 65 year old’s policy, so they have to raise the cost for our young people.  Everything in Obamacare is designed to eventually move everyone into the government exchanges.  And when you are in a government exchange, you find out you are paying 12 dollars a year to pay for abortions. 

Welcome to the wonderful world of Obamacare.