Obama Health Care

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Historic legislation was signed on March 23, 2010 by President Barack Obama, legislation that is intended to change the American health care system forever. After decades of wrestling with this quandary, Obama is the first American president to finally put a plan into place. In its original incarnation, it was meant to grant access to healthcare to those who had previously been unable to get it, and still does for many even with the concessions made. However, Obama health care has yet to see an easy road to success, but certain changes have already taken place that are probably permanent, changes that may yet bode well for those struggling to get health insurance coverage under the current system.

Obama health care as it stands today

The Obama health care plan intends to give insurance coverage to more than 30 million people who previously haven’t been able to access it, mostly by expanding existing Medicaid services and giving subsidies to those with low to moderate incomes so that they can buy private insurance. Those who must buy individual insurance policies will also receive help through insurance exchanges.

Another improvement is that insurance companies are prohibited from denying coverage to those with preexisting conditions. Medicare will see some changes, too. A panel of experts will be created to oversee the Medicare, and they will limit reimbursement from Medicare so that it only covers currently effective treatments; it also encourages providers to limit charges by individual procedure and instead to bundle services for cost effective savings.

The plan is expected to cost about $938 billion over the next 10 years, and reduce the deficit by about $138 billion in the same time period.

Roadblocks for obama health care

Obama health care has already been challenged in court more than 20 times, and today, it is now awaiting a hearing by the Supreme Court. Arguments are expected to begin in March with a decision in June. The court challenges that have been filed against obama health care are further complicated by the fact that appellate court findings in those challenges are sometimes conflicting.

Although its fate is as yet uncertain, there are certain aspects to the Obama plan that have gone into play and are unlikely to be repealed. For example, regardless of what the Supreme Court rules, health insurers are already under strict oversight as set in place by the plan, and more than one million young adults have received extended health care coverage under their parents’ insurance plans. There are more protections for workers who have preexisting conditions, and the plan has forced institutions take an unpleasant and unwelcome look at healthcare’s relentlessly rising costs.

The crux of Obama health care’s challenges, though, is the question of whether or not Congress even has the constitutional power to require that individuals either buy insurance or pay a fine. This “individual mandate” was put in place to require insurance coverage for all, but dissenters argue that it violates the individual’s right to choose. Paradoxically, insurance companies are on board with the individual mandate, since if healthy individuals must buy insurance, they argue that they will have more money to treat those with chronic conditions, those who will be more expensive for the health industry to treat. Whether that is their true focus (and not pure profit) remains to be seen.

Republicans across the board have challenged and decried it, and Democrats have not been happy with the concessions Obama has made in order to get it passed into law. Because of this, it remains generally disliked by many, with those who supported the original plan nearly as displeased as those who didn’t want its passage at all. With the removal of a true public option, many argue, the health care industry has no counterpoint to artificially inflated pricing meant for pure profit, and of no benefit to the private consumer.

Mark South
Obama Health Care

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obama health care is still a sore subject among many Americans, particularly those who are experiencing a rise in insurance premiums, which is the exact opposite of what was promised by the President in 2008. During his campaign, the President promised that Obama health care would decrease premiums for a typical family by about $2,500. In 2008, the average premium for an employer-based family plan was approximately $12,680. Now, in 2011, the average family premium is more than $15,000.

These figures were taken from the Kaiser Family Foundation, which is a foundation in support of Obama health care. While it is estimated that the health care law is contributing 2 percentage points at the most to the substantial increase, it is believed that this estimate is “covering up” the true impact on many households across the nation.

Just prior to the first mandates taking effect, insurance providers reported that Obama health care would increase premiums by as much as 30% for some consumers by this year. Following those reports, the Obama administration accused insurance carriers of misinformation – but the truth always seems to have a way of winning out in the long run.

As if this isn’t bad enough, numerous reports reveal that Obama health care news will only continue to get worse, especially in 2014 when waivers expire and the health care law takes full effect. Jonathan Gruber, health economist at MIT predicts that 6 out of 10 consumers in the individual market in Wisconsin will watch premiums increase 31% on average; he also believes that many people will see even larger increases. One of the biggest supporters of obama health care, will Gruber be accused of spreading misinformation (he was paid as a consultant to Obama’s administration)?

Actuarial consulting firm Milliman, Inc. predicts that in Ohio, premiums will rise by as much as 55% to 85% for some consumers in the individual market. In fact, Milliman projects that premiums may increase by 90% to 130% for young healthy males, and by 150% for small businesses.

One previous provider, Principal Financial Group, responded to Obama health care by dropping completely out of the market to leave almost one million Americans grappling to find new coverage.

Not even bothering to ask whether employers dropped dependent coverage entirely after children up to age 26 were able to enroll in their parent’s coverage plans, the Kaiser Family Foundation failed to mention that Obama health care may have caused thousands of dependent children to lose their coverage.

There are no two ways about it; it doesn’t appear that Obama health care is in any way, shape or fashion lowering premiums for family coverage.

Mark South
Obama Health Care

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Nearly 18 months after obama health care was signed in to legislation on March 23, 2010, the law is still met being met by challenges.  obama health care seeks to extend health insurance coverage to over 30 million individuals, primarily by providing federal subsidies to assist low to moderate income Americans buying private coverage, and by expanding Medicaid.  During the first two years in office, this is the largest single legislative achievement of President Obama, and overwhelmingly the most controversial.
Challenges Facing Obama Health Care
There have been more than 20 challenges thus far against several aspects of the health care law.  Most of these challenges are in regards to the individual mandate, which requires that all Americans purchase health insurance or face paying a fine.  This mandate is key to the Obama health care law’s mission of expanding coverage.  Unless healthy people have policies, insurance providers argue that they will not be able to afford to treat individuals with costly chronic conditions.
By February of this year, the mandate had been upheld by three district judges; two found the health insurance mandate unconstitutional.  The judges in favor of Obama health care had been appointed by Democrats, the two finding the mandate unconstitutional were chosen by Republicans.
This summer three federal appeals courts weighed in on the matter, which ended in a three-way tie.  One court found the individual mandate constitutional, another found it unconstitutional, and another court ruled that plaintiffs (which included the state of Virginia) had no right to challenge the mandate.  Given the varied opinions, it’s almost a certainty that the matter ends up in the Supreme Court.
If  Obama health care is sustained in the courts, President Obama is certain to take his place in history as the one president, unlike Bill Clinton and Harry Truman, who succeeded at revamping America’s health care system.  If Obama health care does in fact remain intact, 16 million individuals will be added to the Medicaid rolls.  The  majority of Americans will be required to have health coverage, and coverage for low to moderate income people will have subsidized private coverage.  Private insurers will also be monitored more closely, as they will not have the right to deny care of those with pre-existing conditions.
As soon as Obama signed the bill, challenges filed in federal court began almost immediately.  The President has stated that he is willing to amend portions of the Obama health care law.  Obama said that if states could demonstrate other methods that would allow coverage for as many people as the individual mandate, with insurance coverage that is affordable and as comprehensive without increasing the federal deficit, they can request to circumvent minimum benefit levels.  All in all, whether the Obama health care individual mandate will live or die still seems to be an unanswered question.

Mark South
Obama Health Care

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On August 12th, a federal appeals court panel consisting of three judges of the 11th Circuit Court of Appeals came to the conclusion that Congress went too far when lawmakers passed the individual mandate included in Obama Health Care.  Now, things are moving in the direction of the U.S. Supreme Court.
Circuit Judge Frank Hull and Chief Judge Joel Dubina wrote a 207-page opinion in which they found that residents cannot be required by law to quote “enter into contracts with private insurance companies for the purchase of an expensive product from the time they are born until the time they die.”  According to obama health care, Americans would have to carry health insurance or be subject to tax penalties.  So far this has been the topic of many debates.
While it is clear that many Americans do not believe it is fair for the government to “force” them to buy health insurance, others feel quite the opposite is true.  White House advisor Stephanie Cutter stated that when American’s decide to go without health coverage, they are making a decision that economically affects all Americans.  In essence, those individuals who seek health care but have no insurance are having the rest of the citizens in the U.S. pick up the tab.  Over recent months it looks as though not too many states are in favor of Obama health care, as 26 states have sued to prevent the law from taking effect.
One thing that Obama health care has achieved is making the 2012 presidential campaign a contentious one; Republicans are adamant about overturning Obama health care while supporters point out that the policy originally started with former governor Mitt Romney of Massachusetts who when governor of that state considered a similar state program.  Romney is now considered a front-runner for the Republican presidential nomination.  Should Romney win, does this mean our country may be facing Romney health care instead of Obama health care?
Those in the legal industry say that they have long expected that Obama health care would eventually land in the hands of the Supreme Court.  Carl Tobias, a professor at the University of Richmond School of Law, stated that “There needs to be a pronouncement that’s nationwide.”
Obama health care is only one of many reasons that the president and Congress have been slipping in popularity over recent months.  Economic issues, Afghanistan and now a vacation in Martha’s Vineyard while the United States seems to be falling apart are not helping to improve the president’s image.
Will obama health care eventually swim – or sink?

Mark South
Obama Health Care

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Many families could potentially be left without access to subsidized health insurance, thanks to a provision in Obama health care created to prevent employers from dropping health insurance coverage for their employees. This is a big problem and major headache for both congressional Democrats and the Obama administration, due to the fact that beginning in 2014 everyone is required to be insured, and many families cannot afford to buy health insurance should employers drop coverage.
Support for obama health care could be dramatically undercut due to this situation warn some of Obama’s closest allies.  As is already widely known, Obama health care contributed to the loss of Democrats in the House in midterm 2010 elections; many voters are adamantly against the health care law.
Jocelyn Guyer, deputy executive director at the Center for Children and Families at Georgetown University, stated that “It’s going to be a massive problem if it comes out that families have to buy really expensive employer-based coverage.”  The huge obstacle facing families is that while the Obama health care law will require that families have coverage by 2014 or face penalties, it still doesn’t mean that families will have access to affordable options.
A “firewall” in the obama health care law is the concern right now, as this firewall means that workers whose employers provide affordable coverage will be denied subsidies.  Workers who have employer sponsored health care plans with premiums that cost less than 9.5% of their income would not be eligible for subsidies, while employees with premiums above that amount will be eligible for subsidies because the cost for employer coverage is considered unaffordable.
In the beginning, advocates for Obama health care were under the impression that the threshold applied to family coverage.  For example, a worker and his/her family would be eligible for subsidies if the worker’s premium costs were 20% of his/her income.  However, in calculating the cost of Obama health care for last year, the JCT (Joint Committee on Taxation) understood the new health care law to mean that as long as the individual plan is affordable, employees and their families will not be eligible for subsidies no matter what the price of the family plan is.

Mark South
Obama Health Care

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You may or may not be in favor of Obama health care, but big changes are coming in 2014.  According to recent studies, more than half of employers that currently offer employer-sponsored insurance (ESI) will stop doing so when all of the provisions are put in place in 2014.  Many employers stated that even if they were to give employees compensation or benefits that equaled the cost of coverage, they would still come out ahead economically.
From the beginning, obama health care has been met with mixed emotions. When employers cease to offer coverage to employees in 2014, those employees will be required to obtain their own health insurance coverage or face fines with the exception of those at the poverty level.  These fines could over time amount to as much as 2% of the employee’s income.
While it seems that those who are at the lowest income levels usually suffer most, Obama health care is no different.  The survey conducted by McKinsey recently suggests that many employers will find a middle ground that lies somewhere between keeping employee coverage the way it currently is and completely dropping health coverage for employees.  The end result will likely be based on companies increasing their bottom line while workers who make minimum wage suffer.
There are several creative options for businesses when it comes to employee health care under the obama health care plan.  Businesses may restructure in to two companies, one consisting of low-wage employees without coverage, and one made up of corporate executives and management receiving employer-sponsored insurance.  Another scenario is to set the percentage of the insurance premium for low-wage workers that are to be paid by these workers above 9.5% of household income.  Under Obama health care, this is considered “affordable”.  Lower wage employees would have the option to opt-out of coverage and then receive subsidies to buy health coverage from any provider they choose.
Another option for businesses is to reduce the benefits offered to employees while increasing the premium that employees pay; some companies have already implemented this strategy.  While the survey revealed that about 85% of employees would stay with their employers should they lose their employer-sponsored insurance, it really isn’t that surprising considering the tough economic times we are facing and the lack of jobs.
While hourly wages continue to shrink, the number of unemployed workers in the United States continues to climb.  Is Obama health care beneficial or detrimental to citizens in this country?

Mark South
Obama Health Care

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It’s no wonder that in recent weeks, more and more people have become totally confused when it comes to Obama health care.  Today, recent polls have revealed that when it comes to Obama health care, about half of Americans are not sure whether the health care reform law has been repealed or is still active.

Headlines in the news recently are responsible for most of the confusion.  In the past month, several judges have struck down Obama health care while others have upheld it.  Republicans voted successfully to repeal the law in the House recently, but this repeal failed when it reached the senate.  Also recently the House Republicans defunded a portion of the law in their continuing efforts to repeal Obama health care, but this hasn’t yet been addressed by the Senate.

According to Drew Altman, president and CEO of the Kaiser Family Foundation, most of the confusion as to whether Obama health care is in or out is due to media headlines, busy lives and in some instances, hope or “wishful thinking” that the health care reform law has been repealed.  Ironically, it’s Republicans that tend to think that the law has been repealed.  In a recent poll, 30% of Republicans polled thought obama health care had been repealed while only 12% of Democrats had this belief.

Recent polls indicate that support and opposition to the health care reform law has stayed about the same in all age groups with the exception of seniors, who are now more in favor than ever before of repealing obama health care.  In fact, 59% of those seniors who participated in the poll have an unfavorable view of the law, which is a record high since the health care bill passed.

Overall, opinions about health care reform aren’t too far apart. .  Amidst all of the confusion about whether the health care law is still in effect or not, it seems that Americans don’t really know what steps they would like to see taken next.  About 30% want the law expanded while 40% want it repealed and replaced.  20% of those polled are happy with Obama health care and want it left as is.

Kaiser Health News also reported that part of the reason it seems so many people are confused about health care reform and what is going on is because they are paying more attention to others areas in the political arena including the federal deficit and the economy.  While it may seem that Obama health care has fallen out of the limelight in recent weeks, it’s a fairly sure bet that we will hear more in coming months.

Mark South
Obama Health Care

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Recently in his State of the Union address, President Obama let it be known that while he was open to changes in Obama health care, he is not willing to refight the entire battle over again to get it passed.

Republicans want to replace or repeal Obama health care, along with a good portion of U.S. citizens.  According to the president, a huge chunk of the budget deficit problem in the United States is related to government run Medicare and Medicaid insurance programs, and the changes made with the health care laws will help rein in the price of these programs.

The president attended a meeting of Families USA recently in which he told the group that Medicare and Medicaid are the biggest contributors to the long-term deficit.  He holds the opinion that health reform is part of the bigger picture of reducing the huge deficit in this country.  Obama health care will help to slow the costs of government-run insurance programs according to the president.

Republicans voted this month to repeal Obama health care, but the effort won’t likely go far.  After winning the majority of seats in the U.S.  House of Representatives last fall, Republicans staunchly vowed to overthrow health care reform; however, the Senate is still controlled by the Democrats and they will not support the repeal of obama health care.

The president defended his health care reform law in the State of the Union address, reiterating how new requirements will make it possible for patients who are sick to have the health care they need, since insurance companies can not deny coverage.

While Republicans continue to fight Obama health care, it looks like they will be in for a tough battle – and one the president refuses to get involved in.  While he will consider positive changes to health care reform, he will not repeat the two year battle.  Meanwhile, Republicans vow to replace Obama health care over time in order to bring down skyrocketing costs by implementing some of their own measures.

Mark South
obama health care

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Recently, an Associated Press-GfK poll found that raw feelings over Obama health care have begun to diminish.  Currently, strong opposition to the health care laws stands at 30%, which is far lower than the percentage of those who were adamantly opposed to Obama health care in September of 2009.

The new law expands coverage to more than 30 million uninsured Americans, and would require that the majority of people in the U.S. carry health insurance.  This would be the first time in the nations history that citizens are required to purchase health insurance coverage.  Many people were outraged in the beginning about Obama health care, and strongly opposed to health care reform.  Now it seems that the intensity and strength of the opposition has lessened substantially.

According to the latest Associated press-GfK polls, 40% of those who participated said they are in support of obama health care, while 41% are against it.  Just two short months ago, 47% of people stood against health care reform and 38% were in support of the new laws.

As for repealing Obama health care, only about 25% now say they would like to do away with the law completely.  Right after the November elections in 2010, 61% of Republicans supported repeal of the law; now, the number of Republicans who believe Obama health care should be repealed has dropped to 49%.  In addition, 43% of Republicans want the law changed so that it is more effective for re-engineering the health care system.

Obama health care was put on the back burner last week following the shooting rampage in Tucson, Arizona that left several people dead and Rep. Gabrielle Giffords, D-Ariz., hospitalized in critical condition after a bullet seared through her brain.

A debate and expected vote is planned to take place on Wednesday, January 19th, and House Republican leaders say that hope to keep the debate on obama health care from turning in to a shouting match.  Opposition to the health care law still remains strongest among Republicans at 71%, while only 19% of Democrats are shown to be against health care reform.  35% of independents favor repeal of the health care law.

While Obama health care is still a hot topic of debate, it appears that many people have changed their opinions and are not as staunchly against health care reform as they were over the past 15 months.

Mark South
Obama Health Care

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