The Pros and Cons of the Affordable Healthcare Act The objections to the Affordable Healthcare Act (AHA) are really not about its goals, that everyone should have healthcare, but how the government achieves those goals. The center of the controversy is about the total cost of reform. The present regime told us before it was instituted that it was going to be more comprehensive and you would pay less. Without even reading the bill they sold us that as fact. Cons The truth is it will cost more, way more because the AHA includes pre-existing conditions and expanded inclusions of healthcare that was not covered before. For example, Magnetic Resonance Imaging (MRI) has three times more devices in the USA per capita as in other developed nations. The widespread use of these advanced medical devices would be expensive if millions more had access to them, thus driving up prices. The main objective of AHA is to insure everyone in America; inevitably
costs will be driven up. The spending of $899 billion on healthcare while cutting Medicare pretty much guarantees its success. Twenty one new taxes will be created from the AHA that will mean more money for the government to run the system but less money in your pocket. PROS The good news is everyone in the USA will be able to receive healthcare, even with pre-existing conditions, providing the same access to our healthcare system that the presently insured now have. One hundred fifty three new federal agencies will be created manned by thousands of government employees that will control over 25% of the economy. This large expansion of the federal government will be good for people that get hired (average pay now for employees is $72,000) and will certainly contribute to the paying of new taxes.
Controlling Costs of the AHA The regime in D.C. so far has not been able to control medical costs which is a secondary goal of AHA and is much likely to not be achieved in the long term because it has not to this date been able to reach this objective. America is now spending 17% of Gross Domestic Product (GDP) on healthcare alone; a level that is almost double that of the OECD average and more than twice what it was in 1980 when it stood at 9%. In 1980 the feds accounted for 25% of the nation’s healthcare spending, while today it has sharply risen to 45% and will continue to grow as the Baby Boomers continue to retire and move into the system. Big Pharma I must point out countries like Canada & Britain with national healthcare benefit from the medical innovations and new drugs that emanate from America’s capitalistic system. Medical companies and Big Pharma make their money off the American
consumer only to sell their newly conceived products overseas at much cheaper prices to state run systems. AHA Monster The AHA is putting extreme pressure on the federal budget; Medicaid & Medicare at this date account for 21% of the feds total outlays. What is in the hopper now is to cut back Social Security disability payments and entitlements (like food stamps), cut in half unemployment insurance paid out, and rid the federal system of overlapping programs. Clearly this is a good thing; the system should become more cost effective and will need to if they plan to implement this monster to get it up and flying. Higher Cost Comes With More Benefits By imposing expensive arrays of new mandates and regulations on the insurance industry like new rules for insurance companies rejecting people (or charging them more) because of pre-existing conditions that the industry calls a “guaranteed issue�, this will also drive the cost up.
No Caps Not allowing caps on benefits per year on treatment costs will also drive cost up. The insurance company will then be on the hook for a catastrophic health condition needing to cover the beneficiary’s expenses no matter what the cost. Other Problems The paperwork involved for doctors will be almost a full time job leaving many with too much bureaucratic red tape and very little time for patients. This is already causing many doctors and healthcare professionals to move on to a different career with less stress and an adjusted attitude. Insurance Companies Support AHA 1.
The new law gives insurers as many as 30 million new prospects for customers, assuming all states participate in Medicaid expansion. This large market (as large as the population of Canada) will be compelled to buy the industries product. Ones that cannot afford it will be
given help from the feds to purchase what they need making them the ideal customer. 2.
Insurance companies still remain free to pass on the increased cost to the consumer in the form of higher premiums, co-pays and deductibles. If they increase too much, however, they could be prevented from selling insurance through the exchanges that may become a major problem in the making. Conclusion Congress stands to benefit from the AHA being fully implemented because they are already aware of what companies stand to gain with this law they created. With their insider knowledge Congress stand to make millions by becoming shareholders in companies that will profit big time from this law. My question to you is, you didn’t think it was about you did ya?