July 10, 2012 > HealthCare... Who Cares?
HealthCare... Who Cares?
By J. Dennis Wolfe
This past week was historic as the Supreme Court ruled that the federal government can now raise taxes without restraints. Notice that I did not say that the Supreme Court ruled you had to buy health care insurance. It is fascinating to see how both sides are spinning this decision. What is compelling as to how bad this ruling was for the left-leaning side of the court (the majority side of the decision), is what Justice Ginsburg did. She was in the majority and still wrote a strong dissenting opinion against what Chief Justice Roberts wrote for her. She got it!
What is most important for you to know is that no matter what everyone claims, this legislation has nothing to do with delivering affordable health care cost-protection insurance. Now, I get a lot of flak for making this statement, but let's take a closer look.
After 2014 there will be no pre-existing condition limitations. This sounds great! No insurer can turn you down, even if you are about to have open heart surgery next month that is going to cost hundreds of thousands of dollars.
ObamaCare tells insurance companies that they must insure a risk without raising rates through the roof. Worse, there is a catch. The carriers are further limited by the legislation as to how much they can raise the rates by something known now as the MLR - The Minimum Loss Ratio.
In my opinion calling ObamaCare The "Affordable Care Act", is egregious. There is no mathematical way to cover the costs for care mandated in this law.
Instead, what the insurance carriers are preparing to do is to pull out of the market. All you have to do is look back at what happened in the early 1990's. COBRA was implemented on July 1, 1987, and within two years, the financial hardship was significant enough that the insurance carriers left the market. Doctors were going broke as they lost their revenue stream from insurance company reimbursement payments.
It took almost four years to right the ship using new HMO's that contracted with doctors at such low rates that doctors and medical facilities could not render adequate care for the monthly income they were receiving from the carriers. The best word that defines what happened in the 1990's and is about to happen again, only at a far more dramatic level, is "Rationing".
We amazingly survived this cost-delivery crisis back then in part because of the demographics, which have now dramatically changed, thereby making economic survival of the current system this time much more difficult.
Today, the demographics are comprised of baby boomers now using the system at much more significant levels for care. They are now caring for their parents who also need greater amounts of care and are nearing the end of their long lives. The economic drain this time is much greater.
Chief Justice Roberts did know this and put the ball for solving the problem back into the hands of you and me - the voters. With 21 new taxes in ObamaCare that raise an estimated $500 Billion Dollars in new taxes starting in 2014, we arguably may owe a thank you to Chief Justice Roberts for proving that this legislation was a masquerade for huge tax increases and nothing more.
Your hard-earned money will be siphoned out of the economy that you need to pay for health care expenses. Many insurers will no longer be in the market after 2013. What is most intriguing to watch is how The White House is doing all it can to hide the reality of these huge tax increases. They are working hard to label them "penalties". Sorry, but the court ruled they are taxes!
I know where this is going and I bet some of you know, too. The question is do you want it? I do not. Suffice it to say that my 1991 book details a workable solution and did warn of this disaster. No was listening then. I wonder if they will listen now.
Stay healthy. Stay tuned. Get involved. Learn what is being done to you under the cover of daylight! Your life now does indeed depend upon it.