In the past few months, we’ve witnessed a number of Health Care Reform rules and regulations that have been released through Health and Human Services Department. Health and Human Services Department. Each time it is reported by the media of it. All kinds of stories are published by The Wall Street Journal, the New York Times, and the news channels on the television discuss the topic. The analysts begin to talk on the advantages and disadvantages and what this means for both individuals and businesses.
The issue is that a writer was looking at the regulations and wrote an article about the regulation. Other writers then begin with the same material as the initial piece and revising them to suit their own article. When the information is widely disseminated in the media, the actual rules and rules become confused and dissected and what shows on the news media does not accurately reflect the truth of what regulations state.
There’s a lot that’s misunderstood regarding what’s happening in the context of ObamaCare One thing I’ve observed in conversations with my clients is that there’s a underlying set of beliefs that people have gathered regarding health reform which are not real. Because of what they’ve read in the media, they believe that these myths are real.
Today, we’ll talk about three myths I have heard frequently. Some people don’t believe in the myths mentioned, however a lot do, and some are not sure of what they think, so it’s worth the dispelling of these myths right now.
Health is first and should be taken on priority as given in the link
The first is that health reform will only affect people who aren’t insured. The second reason can be said to mean that Medicare advantages and benefits as well as the Medicare program won’t be affected by health reform. The final one is that the health reform will help decrease the cost of healthcare.
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The reality is that health reform will affect all of us. Beginning in 2014, we’ll be offered a new array of health insurance plans. And these plans will come with a wealth of benefits and a variety of features that current plans don’t provide. These new plans will come at a more expensive.
Health Care Reform’s Effect On People With Health Insurance
The people who have health insurance plans are scheduled to be enrolled in the new plans around 2014. Therefore, the people who are insured are directly affected since the health insurance plans they are currently on are being eliminated and they will be integrated into the newly created ObamaCare plan in 2014.
Health Care Reform Effect On The Uninsured
Uninsured people face another issue, which is that, if they do not obtain health insurance coverage in 2014, they’ll be hit with penalties for not having insurance. A few of the healthy and people who are uninsured may consider the penalty and think, “Well, the penalty is 1percent from my gross earnings and I earn $50,000, therefore I’ll have to pay a $500 penalty or $1000 for health insurance. If that’s the case, I’ll accept penalties.” In any case they will have direct impact from the health reforms to the health system. By the mandate, it affects those who are insured, as well as those who are not insured.
Health Care Reform Effect On People With Grandfathered Health Plans
Individuals who have health insurance plans that are grandfathered aren’t going to suffer directly from the health reform. However, due to the life duration of their health plans that they have grandfathered the plan will be made these plans more expensive when they learn that there are options readily available that they could easily switch to and that offer greater benefits that are better suited to any medical issues they suffer from.
For those who remain in the grandfathered plans the subscribers to the plan will begin to shrink and, as it occurs the cost of these healthcare insurance policies that are grandfathered will go up much faster than they are currently. Thus, those in grandfathered health plans are also going to be affected by ObamaCare.
Health Care Reform Effect On People With Group Health Insurance
The last , which is the small group market, is expected to be most directly affected by the health care reform. While the new regulations on health care are primarily affecting large and medium-sized firms, and those with more than 50 employees, smaller firms are also likely to be affected even though they’re exempted from ObamaCare in its own.
The main thing that polls and surveys are beginning to reveal is that some companies with less than 10 employees are looking seriously at the possibility of eliminate health insurance altogether and stop having it as a cost to the business. Instead, they’ll have employees receive health insurance through marketplaces for health insurance.
Some of the companies are declaring that they expect as high as 50% of small companies that have 10 or less employees will drop their health insurance plans between 2014 to 2016. This will have a significant impact on everyone who have health insurance for their group particularly if they’re part of one of the small businesses which have dropped the health insurance coverage.
There aren’t just the uninsured who will be affected by the health care reform. Everyone will be affected.
Health Care Reform Will Not Affect Medicare
Another misconception was that health care reform would not impact Medicare. It’s kind of humorous because from the beginning the biggest cuts targeted specifically those who were part of the Medicare program. If you examine Medicare’s part of the federal budget, it is clear that in 1970 Medicare was just 4 percent from total U.S. federal budget, and by the year 2011 the figure had risen to 16 percent of the overall budget.
If we take a look over the past 10 years, from 2002 until the year 2012 Medicare is among the top growing component of the major entitlement programs offered by the federal government. And it has grown by nearly 70% in that span of time.
Because of the huge size Medicare is and how quickly it’s growing, it’s considered to be one of the most important programs ObamaCare attempts to control to ensure that it never ruin this U.S. Medicare is going be affected, and the initial cuts to Medicare have been already established at around $716 billion.
Medicare Advantage Cuts And The Effects
Of the $716 billion that is cut The Medicare Advantage program gets cut the most and will experience the largest of the consequences. What this will result in is an increase in the cost individuals have to pay on their Medicare Advantage plan, as well as reduce the benefits offered by these plans.
Increased Medicare Advantage Costs
In the present, a majority of people are choosing Medicare Advantage plans because they come with no charges for premiums. When they’re offered the option of Medicare programs, people consider it as a simple decision because it’s a no-cost plan for them “Sure I’m entitled to Medicare benefits, and I don’t have to pay anything for it, so why not.” In the coming months, they’ll be seeing Medicare costs begin to rise up from a low of $0 to $70 and $80 to $90. $100. This has already been seen in certain Blue Cross Medicare Advantage plans this year. This will only become worse as we go ahead in the near future.
Reduced Medicare Advantage Benefits
To reduce the price increases the majority of Medicare Advantage plans take is increase the copayments, raise the deductibles and modify the rates of co-insurance. To keep the cost of premiums low, they’ll shift more of the cost onto Medicare Advantage beneficiaries. Higher premiums and lower advantages are exactly what you’re likely to see as we enter the Medicare Advantage plans.
Fewer Medicare Physicians
As if that wasn’t enough, once Medicare doctors start receiving less and less reimbursements for Medicare Advantage beneficiaries They’ll cease accepting new Medicare Advantage patients. The doctor pool to care for the people who are with Medicare decreasing in the same way, unless some changes are implemented over the in the coming five years. Therefore, Medicare will be affected and is likely to be significantly affected by the health reform. Everyone’s in a state of limbo in anticipation of what happens next.
Health Care Reform Will Reduce Healthcare Costs
The last and possibly the most damaging misconception about the health reforms everyone believes that ObamaCare will lower healthcare costs. This is a complete nonsense. At the beginning of the process, as it was time to develop the rules and regulations the primary focus on one of their main goals in reform was to lower costs for healthcare.
But at some point the objective changed towards cost-saving and the regulation that governed the industry of health insurance. After they had made the shift, they put cost reductions off the of the agenda. There are a few cost-cutting elements in ObamaCare but the primary focus is on the regulation of health insurance. These plans as an instance, offer much more advantages than most plans currently and have higher benefits, which means higher costs.
Health Care Reform Subsidies: Will They Make Plans Affordable?
A lot of people are hoping, “The subsidies are going to make the health insurance plans more affordable, aren’t they?” In certain cases, the subsidies could help lower the cost of plans to people. However, if you earn too much, your affordable plans will be very costly and could cost you thousands of dollars more in one year. The question of whether a subsidy will make it affordable or unaffordable is a matter of discussion at this point in the future. We’ll have to see what rates are on these types of plans.
New Health Care Reform Taxes Passed On To Consumers
Additionally, there’s a huge amount of health care reform taxes included in the system to fund ObamaCare. This means that everyone who is covered by an insurance policy regardless of whether they’re in large groups or in a smaller group or even as an individual is going to be taxed to fund the cost of the reform. The health reform law will increase the number of taxes on health care , which insurance companies have to collect and pay, however they’ll transfer it towards us as the consumers.
Mandate Won’t Reduce Uninsured Very Much
In the beginning of the health reforms the mandate was actually rather ineffective. The mandate stipulates that every person must have coverage for their health or face the penalty (a tax). What it will result in is that healthy people watch and patiently wait for the mandate reach the point at which it will force them to purchase health insurance. Health conditions that are chronic that didn’t qualify for insurance prior to now will be able to enroll in healthcare in the first week of 2014.
By the end of the period, it is expected that the price of the plans will increase in 2015. I’m sure that’s likely to happen because the healthy young people aren’t going to be motivated to enroll in the plans. They will not see the benefits of joining a plan that is expensive but the chronically ill individuals will be drawn in the plans and push the cost up.