Just a heads up folks on the new proposed plan to replace Obamacare. It may not affect you because you have group health insurance or you work for the government, but it could affect a lot of your friends.
Courtesy of CNN
Talking of group coverage, under the proposed new plan, larger employers would no longer have to supply group coverage to their employees. Whaaat? Are the large firms going to increase salaries so that you can actually pay for your coverage? I don’t think so! Certainly not enough to cover what you may have been paying together with the company’s contribution on your behalf.
Some provisions in the old Obamacare will remain so that is why the new plan is being referred to as “Obamacare Lite.”
Those of you who are dependent on Obamacare are about to be lead right down the garden path. If you are lucky, you will see pixies dancing in the moonlight when you get there, if not, watch out for the ogres.
Here are some points on the proposed new deal. The devil is always in the details but we are not even going to go there yet because this is only the first proposition and is subject to change.
Under the proposed plan, your rights to have access to health coverage will not be affected, BUT you may not be able to afford it. For people in the know, this is called rationing.
Right off the bat, I can tell you that other developed nations who have already had single payor systems in place for many years, working successfully, will not be rushing to change their existing plans for “Obamacare Lite.” Their citizens have had the right to health care for decades without rationing.
You will no longer by required by law to carry health insurance or pay a penalty is you don’t. Good? Hmmmm…. As an individual, you may no longer face penalties charged by the IRS if you don’t have insurance BUT you could still be hit with a major penalty should you, for any reason, let your coverage lapse and then try to get the coverage reinstated. The insurance companies will be allowed to increase your monthly premium by up to 30% after a lapse! If you could not pay your premiums for 2 months, say, how on earth are you going to be able to pay 30% more for your insurance in the future? Is this Draconian or what?
The health insurance companies, not the government, will run the programs on a state-by-state basis. Whilst it is good to keep government out of our affairs as much as possible, in this case, the health insurance companies will be looking to make a profit. Their battered bottom lines are exactly why so many of them pulled out of the Obamacare Exchanges.
While you could not initially be denied coverage for pre-existing conditions, in the proposed deregulated insurance market, the handling of pre-existing conditions by the insurance companies could be much more uncertain. Again, what would happen if you let your policy lapse? Could they deny coverage for your pre-existing condition AND charge you more for reinstated coverage?
Basically, we are just going back to the “good old days” for the big Insurance companies, minus a few bells and whistles. We will, again, have the most expensive healthcare on the planet. The price will depend on what the market can bear and that price is always the highest price the companies can squeeze out of us.
Once we take this step it will be decades before changes back towards single payor might be made. So this is a big deal!
We should be suspicious of any plan that was hatched in 2 weeks behind closed doors. Life just doesn’t work that way!