Saturday, July 25, 2009

The Sneaky Pain of ObamaCare

Aside from "Just taking pain pills"there are hidden pains that you might want to buy a bottle of Aleve for if you are in these groups.

Young People
Small Business Owners
People with HSA's
People Enrolled in Medicare Advantage

The Young;
If the government mandates that everyone must have health insurance, healthy young people will have to buy policies that don’t reflect the low risk they have of getting sick. The House and Senate bills do let insurers set premiums based on age, but only up to a 2-to-1 ratio, versus a real-world ratio of 5 to 1. This means lower prices for older (and wealthier) folks, but high prices for the young. “They’ll have sticker shock,” says Rep. Paul Ryan, ranking Republican on the Budget Committee.

Small Businesses;
Employers who don’t provide coverage will have to pay a tax up to 8% of their payroll. Yet those who do provide coverage also have to pay the tax—if the law says their coverage is not “adequate.” Amazingly, even if a small business provides adequate insurance but its employees choose coverage in another plan offered through the government, the employer still must pay.

HSA Owners;
Eight million Americans, according to the Treasury Department, are covered by plans with low-cost premiums and high deductibles that are designed for large, unexpected medical costs. Money is also set aside in a savings account to cover the deductibles, and whatever isn’t spent in one year can build up tax-free. Nearly a third of new HSA users, according to Treasury figures, previously had no insurance or bought coverage on their own.

Medicare Advantage Participants;
To summarize, M.A. provides a higher standard of medical coverage than the standard Medicare, something that will vanish once the government decides which treatment option is best for each condition. The selection of prescription drugs will be reduced, and other things. Obama even described it as a prime example of where to cut costs in an interview with the Washington Post.

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