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  • Obamacare’s Big Surprises for the Uninsured

    Bad News

    The recently signed health-care legislation will have lasting consequences on health care in America. The massive two-piece package includes federal control of benefits, increased taxes, mandates on employers and individuals, and an expansion of costly and inefficient entitlements.

    This represents a federal takeover of the U.S. health care system on the pretext to meeting the needs of the millions of Americans who are currently uninsured. However, in a recent paper, Heritage’s Kathryn Nix writes:

    This ‘reform’ will result in less choice and competition for health care consumers and, although more Americans will be ‘covered,’ the quality of this coverage will decrease. Moreover, certain provisions of the new laws will make obtaining health insurance less desirable by increasing costs, causing even more Americans to drop or lose coverage.

    According to the Congressional Budget Office, the new law will provide coverage to 32 million by 2019, but will still leave 24 million Americans uninsured. This is a far cry from universal coverage. For those who become newly insured, Nix argues Obamacare falls short of fulfilling its promises to the uninsured because it:

    Dumps millions into Medicaid. “In order to cover low-income uninsured citizens, Obamacare expands eligibility for Medicaid…[which] is a low-performing, low-quality federal program that fails to meet the needs of its beneficiaries. For example, Medicaid’s failure to cover the cost to providers of seeing Medicaid patients has greatly reduced the number of doctors who will see Medicaid patients.”

    Will raise premiums, discouraging coverage. “A guaranteed-issue provision will allow Americans to wait until they are sick to seek out insurance, causing insurance premiums to soar. The individual mandate is intended to combat this by forcing Americans into the insurance market before they are sick. However, since the individual mandate penalty will be significantly less expensive than the cost of an insurance plan, this provision will not achieve universal coverage, and insurance risk pools will begin to consist more exclusively of only those who need insurance the most: the sick and the elderly. Younger, healthier Americans will likely choose to pay the penalty, purchasing insurance only if needed.”

    Will cause millions to lose their current coverage. “The ranks of the currently uninsured will not simply be reduced by the new law. Rather, as millions of Americans find themselves newly covered, a substantial number will also find that they will lose the coverage they currently carry as a result of the health care overhaul. According to the CBO, 8–9 million Americans that currently receive employer-sponsored coverage will lose it. Of these, 1–2 million would go from receiving coverage from an employer to obtaining coverage through the exchanges.”

    Resorting to mandates, government handouts and poorly functioning entitlement programs to increase coverage will do nothing to improve the health care quality of the uninsured. Though millions Americans will gain coverage, it will not necessarily be the private coverage they want, and it will come at a high cost. Heritage already projects a huge expansion in Medicaid.

    Rick Sherwood currently is a member of the Young Leaders Program at the Heritage Foundation. For more information on interning at Heritage, please visit: http://www.heritage.org/About/Internships-Young-Leaders/The-Heritage-Foundation-Internship-Program

    Posted in Obamacare [slideshow_deploy]

    22 Responses to Obamacare’s Big Surprises for the Uninsured

    1. Bllie says:

      What is the "exception" ratio? What constitutes "entitle?" "entitled?" "entitlement?"

    2. Pingback: The Patriot's Flag » ObamaCare – A Reference Primer

    3. Roxanna, Mariposa, U says:

      The whole point of Obamacare is to drive private health insurance companies out of business. Hasn't any single one of the people forcing this on us (1) grasped the fact that socialized medicine is a failure in countries that have a lot fewer people than America, and (2) where are all the newly-unemployed people going to work.

      To say that the inmates are in charge of the asylum is a vast understatement.

    4. Ed in Texas says:

      Your analysis 100% correct….But millions of us knew these facts before the Bill became Law.

      So why were these facts not written and talked about everyday BEFORE Congress voted??

    5. LALaw, Los Angeles says:

      Thank you Heritage for developing the idea of an individual mandate (with a ban on pre-existing conditions and subsidies for those who cannot afford insurance) in the early 1990s, thereby laying the intellectual foundation for "Obamacare." I'm sure your conservative donors are very proud. I saw your interview in FrumForum that your plan was completely different; no one is buying your excuse, except possibly Mitt Romney since he's trying to use the same excuse.

    6. russ in north caroli says:

      It is crazy that there should be insurance for health. What are the odds that you will get diseased and die? The odds are 100%. How does insurance work when the event being insured against is a 100% certainty? The premiums must be high and the exclusions must be extensive. My idea (everybody listen up!) is to provide all residents of the USA with Catastophic Insurance Only, with a High Deductible, that only covers health events in excess of $40,000 and a lifetime cap of $800,000. Anything beyond that you pay for yourself. The government pays the for the basic Catastrophic Plan. Where does it get the money? Royalties from oil, gas, mining and timber leases. There, now you come up with something better.

    7. Bernard says:

      Your article is full of falsehoods. your approach to the whole matter is obviously skewed coming from a person with very good insurance. You don't speak for the uninsured dint bother to pretend to.

      • Isaac Davis says:

        go back and read the article. It is clearly expressed that the uninsured will probably pay the penalty and wait until they need insurance to decide to buy. There is NO SUCH THING as no medical coverage in America; medicine is available at any emergency room, and many millions of people in America choose soberly to not buy health insurance, but will spend thousands on cable tv, cellphones, and other vices and forego any sort of medical care plan because they are not currently "injured/sick". You have to make a distinction between what someone wants and what someone needs, and then define what of those that YOU are willing to give up your income to support because the other person simply hands the control of their life over to the damn government. The government cannot give anything to anyone that it first does not take from someone else, PERIOD.

        Isaac Davis

    8. ANN, OREGON says:

      My mother always taught me, Beggars can't be choosers. I have always chosen to provide the best I can for myself and not beg others to give me the leftovers for free. This applies to health insurance/care as well. Those wanting freebies while the rest of us pay for it are going to have to settle for the lowest quality care available.

    9. Caron says:

      I just finished filling out my Mass 4 page Healthcare Form..along with the regular multi paged Income Tax. If you think your refunds are slow now just you wait…till those IRS folks in DC try to figure out if I have Good Enough Insurance..

      I note that in France, My former Country, If you have a Congenital Defect or a problem at birth that requires once a year tests that are common place here as part of a check up..the 1/3 of your monthly salary will deducted up front…and that will not include what you pay monthly for the "Free" insurance offered. I often wondered why there are so moany homeopath services in Europe and especially in France..well They are Cheap Your costs Down. They are also ordered up for patients who have "expensives" regimes of medicine.needs. We also had many pharmacies taking care of us..in place of Doctors..if you have a minor question you go to the drugstore Not the Docs.. yes..Americans will love the lines at the MD"s, Hospitals..and they will be surprised by the one at the local Pharmacies too.

      My Grandfather had to wait 5 months for a surgery that would have cured his problem, instead he died in the 3rd month… SHAME ON OBAMA FOR SHOWING SUCH LITTLE CONCERN FOR THE HEALTH OF FOLKS VS…POLITICS…

      Just wait till you have the first "tragic " occurence like in France several years ago..15,000 dead in Hospitals and nursing homes… The Government was on vacation…

      Because of the VAT tax. most hospitals and even private homes don't bother with Air Conditioners… or bottled water, thus most of the patients died from lack of care and WATER…

      I haven't seen any folks out in the USA streets begging for Medical care..here they get a Taxi (free) to the ER… and all the care they want..

      America, freedom is Special and Precious and you are Not Being Careful of it…Shame on You!

    10. Pingback: You Can Lose Your Coverage If You Like It | www.statehousecall.org

    11. Pingback: WhyDoesThisHappen.com » Blog Archive » Obamacare won’t deliver on the promises

    12. Billie says:

      as far as the term "insurance" all it is to the government is money. TO BE PROUD TO SAY YOU HAVE "HEALTH INSURANCE" IS GOVERNMENT'S WAY OF CONVINCING YOU OF PEACE OF MIND! If the government is going to take over peoples personal "health care" there is absolutely NO REASON TO HAVE "INSURANCE." GOVERNMENT IS THE INSURANCE!

      needless paperwork and make work jobs all at an expensive, crippling waste. You'd think those who get it free now, would go by the same process. If people who are getting it free now, fill out a government insurance form, they may pay for public relation, but they will be reimbursed in other ways. this administration loves unaccountable and irresponsible people, as that is obama and his government administration's way. They burden, oppress and punish the accountable and responsible to mock the faith.

    13. Billie says:

      sorry another correction, last line: to rid the faith.

    14. Flo in New Jersey says:

      I always resist getting into the fray of Medical Ins. because I could write a book. First Medicare which is a social program came as a shock to Physicians as their fees were cut, but they adjusted and because there have been no restrictions and you can see your doctor without referrals and precerts, seniors loved going to the doctor where before they may not have had the money to go. Next came Medicaid a poor peoples' healthcare. Physicians don't want to accept it because it reimburses the worst and Medicaid spends more time denying claims then paying them. A doctor could never pay off his medical school loans, pay rent or hire help with their fee schedule even if he ran a Medicaid mill of which there were some in Newark, NJ in the early 80's. The new Healthcare reform bill didn't fix what is wrong with Healthcare the downward spiral is yet to come.

    15. Mary says:

      It seems that not only with the quality of healthcare be lost but also the economy will will decline with loss of jobs and coverages. With this will come more people on welfare and more votes for obama and his ilk!!

    16. BED says:

      What I find hilarious is that one of the issues they kept screaming about (i.e., people using ER's because they have no insurance and the cost of this) is not taken care of in this legislation. People can still go to an ER for free coverage. Yes, people have to have insurance or pay a fine, but it's probably cheaper to pay the fine (less than $1,000, correct?) than buy insurance. And, since the law for years has been that a person cannot be turned away from an ER, they will pay their fine and go to the ER, and we will still have the same costs they screamed about.

      There is NOTHING in Obamacare that says a person without insurance is not able to use an ER or must pay upfront. THAT would be an incentive for people to get insurance. Nothing is going to change. Poor people and illegals will not buy insurance because they can't afford to or don't want to be "in the system" and they will still show up at the ER and expect to get free coverage.

      The reality is that this law is designed to be nothing more than a stepping stone to single-payer ruled by the government.

    17. Stephen says:

      Get prepared to be placed on another wait list! Same as we have in public schools. Free things elicits crowds of people, hence the necessity for picking and choosing. And as inefficient as gov't already is, get ready for more inefficiency as the PPAACA kicks in come 2014.

    18. Greg says:

      The thing that you all call Obamacare is because you're old and rich. You never remembered what your parents gave you. FDR gave your parents and this country a decent living, and a decent way to live. It's shameful how you snarl when there's a new administration that will uplift the poor.

    19. Ozz says:

      No one is angered by everyone "must have" car insurance, I do not see the issue with everyone having health insurance. The healthy will never buy health insurance until they need it and the sick get cheated out of it because they have a pre-existing condition… that's how insurance companies control who's in and who's out. Plus ours is not going to be a government run program … your insurance is still through your employer… the rules for the employer are tougher…… So once again people why are we ok with ALL HAVING CAR INSURANCE BUT NOT HEALTH INSURANCE?

      • Sam says:

        Because…you have a CHOICE to own and drive a car. Choose NOT to own one and you don't have to pay car insurance. You have no choice to just be alive in the country you were born in.

      • saliior says:

        not ok with car insurance but theyve alredy got there claws in that to deep get them to let it go. we still have a chance with thuis if we stand up as a whole and fight

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