President Obama’s administration healthcare reform bill is expected to bring the much-needed healthcare reform by extending healthcare benefits to millions of Americans who do not have healthcare insurance. But a closer look reveals that not all Americans will benefit from these reforms. These groups include taxpayers, the elderly, healthy young adults, businesses, private health service providers and those who earn the highest salaries.
Most seniors are enrolled in the government-funded Medicare system. “About 23 percent of all Medicare beneficiaries are enrolled in Medicare Advantage” (Boehner, 2009) Under Medicare Advantage, the government has a special arrangement with private insurance companies to provide treatment to Medicare beneficiaries at a set rate. Medicare Advantage was created to contain costs based on the theory that private competition would bring down costs, although that objective was not achieved. If the Health Reforms are enacted, all seniors in the Medicare Advantage will be required to switch back to regular Medicare, as the proposed reform will “stop the extra payments that Medicare Advantage receives” (Boehner, 2009)
According to Charlotte Allen, healthcare reforms are set to “cost about $1 trillion over the next 10 years” (Allen, 2009). Half of healthcare costs would “be covered by reducing payments to providers within the giant Medicare program, but the rest would require new taxes or revenue sources” (Rice, 2009). This is likely to bankrupt Medicare system in the next 10 years. The old people who mostly rely on Medicare are likely to have no access to Medical services as Medicare funds are diminished.
To fund the reformed Healthcare system, the government will result in higher taxation. Top on the list will be increased tax on “families earning more than $250,000” (Pickert, 2009). These groups of Americans will experience an increased tax burden to fund the healthcare system. The less wealthy are also likely to carry the tax burden if enough money is not realized from high-income earners. Although the reforms will delay the Cadillac Tax, individual health “plans with premiums above $10,200 and families plans above $27,500 would also be subject to the taxation” (Pickert, 2009) through this tax system.
Under President Obama’s Healthcare reforms, all patients will be required to pay “the same rates for their level of coverage regardless of their age or medical condition” (Tully, 2009), under community rating plan legislation. This means young healthy adults who have in the past opted to pay for basic services will have to enroll in a healthcare plan without the benefit of subsidies. The young people see the healthcare reforms as unfair since they have low income than older people, yet they pay “far more than their actual cost, and the reforms will give older workers, who can afford to pay more, a big discount” (Tully, 2009)
The entrance of the government through the public plan, into the healthcare services market will negatively affect private health companies. The government has a strong purchasing and administrative power than most private companies. “Individual insurers do not have the market power to counter pricing power of many hospital systems and physician specialties” (Holahan & Blumberg, 2009). Reduced costs will enable the government to provide healthcare services at a cheaper rate than private healthcare providers. As such, many individuals and families might opt to switch to public options which will ultimately lead to the collapse of private healthcare businesses.
According to a survey by Tower Watson, targeting business owners and employees, “71% of employers claim that health reform will increase the overall cost healthcare services” (Bridgeford, 2010). Workers share a similar sentiment in that they fear “healthcare reform would either result in higher benefit-cost, lead to reduced benefits or lead to lower quality of healthcare” (Bridgeford, 2010). Besides, the reformed healthcare services will rely on the employer mandate, which will ultimately lead to “increase cost to some businesses” (Holahan & Blumberg, 2009)
Although the proposed healthcare reforms are likely to benefit millions of Americans who have no insurance, there are groups of people who will not benefit from these reforms. The reforms will stop benefits that go to Medicare Advantage, meaning those seniors subscribing to this program will have to revert to regular Medicare. The reforms will also put a lot of financial stress on the economy which may lead to a cut back on Medicare, which will reduce payment to Medicare and Medicaid providers. Both the wealthy and less wealthy will experience increased taxation to fund the reformed Healthcare program. Young healthy adults will be negatively affected by the reform in that they will be forced to enroll in public healthcare plans and pay at the same rate as old, wealthy Americans. Reduced cost of public healthcare options will bring unfair competition to small private companies, as people switch to public plans. This will lead to the collapse of the private healthcare service provider. Employers will be mandated to provide health insurance to employees, which will increase the cost of business, lower the quality of healthcare and reduce benefits to employees.
Works Cited
Allen, C. (2009). The painful side effects of Obama’s healthcare reform. Web.
Boehner, J. (2009). Forcing Americans off of their current health coverage. Web.
Bridgeford, L. C. (2010). Employers say health reform will not control costs. Web.
Holahan, J., & Blumberg, L. (2009). Urban Institute. Health Policy Center , 7-10.
Jake Tapper, H. K. (2009, June 16). What Does Obama’s Health Care Plan Mean For Consumers? Retrieved March 15, 2010, from ABC News: What Does Obama’s Health Care Plan Mean For Consumers?
Mackey, J. (2009). The Whole Foods Alternative to ObamaCare. Web.
Marmor, T. (2009). The Obama Administration’s Options for Health Care Cost Control: Hope Versus Reality. Annals of Internal Medicine , 14-21.
Pickert, K. (2009). Details of Obama’s Health Care Plan. Swampland , 3-4.
Rice, C. (2009). Health Care Reform and You. Web.
Tully, S. (2009). 5 freedoms you’d lose in health care reform. Web.
Annotated Bibliography
Allen, C. (2009). The painful side effects of Obama’s healthcare reform. Web.
Charlotte’s article is a protest against the enactment of Obama health care reform. The article is skewed toward the effect the reforms will have on seniors and how it will affect the Medicare and Medicaid system.
Boehner, J. (2009). Forcing Americans off of their current health coverage. Web.
John Borhner takes specific look at the existing collaboration between the government and private insurance companies and how such programs will be affected by the introduction of government-led health care. In this article, the author notes how current subscribers of Medicare Advantage will have to revert back to regular Medicare once health reforms are enacted.
Bridgeford, L. C. (2010). Employers say health reform will not control costs. Web.
Bridgeford’s article focuses mainly on how the proposed health care reform will affect employers and employees. This article makes use of the “National Business Group on Health report which shows that most employers feel that the healthcare reforms are increasing the cost of doing business.
Holahan, J., & Blumberg, L. (2009). Urban Institute. Health Policy Center , 7-10.
In this article, Author Holahan and Blumberg take a closer analysis on how private health providers will be affected by entrance of the government public plan. The authors argue are of the opinion that the government has a strong purchasing power than most private companies and hence likely to provide health care services at lower rate. As such, most people are likely to stop using private medical health services which could spell death to these companies.
Jake Tapper, H. K. (2009). What Does Obama’s Health Care Plan Mean For Consumers? Web.
This article is written from a doctors’ perspective. The two authors look at how doctors will be put under more scrutiny by the health reform with the tightened check on malpractice. Doctors will have to require patients to take more tests to shield themselves which could ultimately increase cost of health.
Mackey, J. (2009). The Whole Foods Alternative to ObamaCare. Web.
In this article, Mackey spells out the need for healthcare reform without adding to the national deficit. He feels that the general public stands to lose in that they will be taxed more to fund the health care reforms. Mackey recognizes the need for Americans to be able to choose a health care service that best suits their lifestyle and a doctor who can take care of their health. Mackey further stresses the need for people to be responsible and adopt a healthy lifestyle that will reduce the need for medical services.
Marmor, T. (2009). The Obama Administration’s Options for Health Care Cost Control: Hope Versus Reality. Annals of Internal Medicine , 14-21.
This journal article is an honest look at the projected cost of health care reforms as proposed by the Obama administration. The author takes a look at existing government-controlled medical systems like Medicare and how much it takes to fund such systems. Marmor notes that these systems are likely to be affected by the introduction of other government-funded health care, and so seniors will not feel the benefit of health reforms.
Pickert, K. (2009). Details of Obama’s Health Care Plan. Swampland , 3-4.
In this article, the author, Kate Pickert gives honest opinion on both sides of the health care debate. While she agrees that the reforms will benefit those people who do not have access to health care service, she points out the likely hood of increased taxation especially to those earning more than $250, 000 a year.
Rice, C. (2009). Health Care Reform and You. Web.
This article seeks to answer the question many Americans have been asking regarding what is for them once the Obama Health care reform is enacted. The article explores various groups of Americans with or without health care from children to seniors, healthy adults and those with chronic diseases.
Tully, S. (2009). 5 freedoms you’d lose in health care reform. Web.
In this article Tully provides a one-sided debate about the negative effect that will be brought by Obama Health reform. His arguments range from loss of freedom to choose one own plan to freedom to choose a doctor.