May 15, 2014

Commentary - Obamacare: The promises made, the promises broken, the dismal results for everyone.

By Rob Janicki

Two broad conclusions are materializing under Obamacare. The first fact is that costs for Obamacare are not declining and thus cutting consumer costs for health insurance.  It just isn't happening and ongoing studies support that assertion.

The second fact is that consumer choice of health care providers and institutions, such as hospitals, is narrowing considerably as a cost cutting mechanism benefiting health insurance carriers.

President Obama promised America that the average family of four would realize an annual savings of $2,500 for health insurance coverage.  That has not materialized and never will, as just about all health insurance premiums are on the increase and many of them by a substantial amount, often by 100% and sometimes significantly more.

Addressing the second fact, we find that health insurance providers are narrowing the consumer's network choices of primary care doctors, specialists and hospitals, all being done as cost cutting measures.  The problem is that even with these cost cutting measures, policy premiums are still rising and will continue to rise as there is no reason on the horizon to indicate otherwise.

Basically, what Obamacare has done is significantly reduce consumer's choices in medical care.  Of course there will be plans that offer expanded network coverage at an extreme premium increase of 2,3 and 4 times as much as one would pay for much narrower network plans.

This concept of reduced consumer choices under Obamacare is contrary to what Americans are use to in a free market.  Essentially, Obamacare is telling Americans that they are going to have to get over the idea of "choice" when purchasing health insurance coverage and rely more on cost of health insurance coverage in their purchase of health care insurance.  If there were significant cost reductions in Obamacare policy plans, I'm quite certain many Americans might accept a reduction in network choices, but that's not exactly what we are seeing.  It is quite the opposite and the facts prove that point.

The bottom line with Obamacare is this.  We are seeing policy plan premium increases while we are also seeing a significant reduction in network choices for consumers.  Put simply, people are paying more and getting less in return.  This flies in the face of a free market choice for consumers.

If you like your doctor, you can keep your doctor and if you like your health insurance, you can keep your health insurance are now hollow promises broken the moment they were made.  Costs are up and rising and choices are limited except for the very wealthy, who can afford the exorbitant premium increases for greater choice of medical services providers.

Let's remember that Obamacare was advertised on the basis of including more people who were previously uninsured.  It was estimated that before Obamacare there were 40 million people who did not have health insurance.  The CBO has estimated that over the next ten years there will still be 30 million people without health insurance.  Obamacare has failed miserably to meet its underlying goal of seeing that all people have access to health insurance, which, by the way, does not mean they have access to medical services.


Obamacare was also advertised as a means to reduce the use and cost for all people by those uninsured people using the emergency room for their medical services knowing they could not be turned away.  Recent studies have demonstrated that there have been no reductions in the use of emergency room services since Obamacare was enacted and with the CBO estimate that 30 million people will remain without health insurance coverage, this Obamacare projection has added to the failures of Obamacare to provide the promised results.

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