The entitlement mission creep will bankrupt our government – On October 1, Obamacare’s Price Tag Will Surprise Americans – Forbes.
So prepare for the next battleground of health care as a “right.” Once people have fully received their free or subsidized health care courtesy of the government and taxpayers, the cries will grow in volume to make these plans the equal of the best plans available and to reduce the inequities outlined above. After all, why should people get lower quality health care simply because they have less money? And why should health care be a financial burden on anyone?
And what are the inequalities? Thought you’d never ask…
#1 Cost
First, cost is likely to be a huge issue. As documented by Chris Conover here on Forbes.com, Obamacare will actually lead to many families paying more for their healthcare than they were before the law went into effect. This cost increase is not some trivial amount, but is estimated to run an average family of four between $650 and $1,000 per year over the next decade.
#2 Subsidy unfairness…
The second problem that will become obvious as the program is fully implemented is the unfairness of the subsidies provided by Obamacare. If an employer offers its workers health insurance, but an employee turns it down because the cost is too high, that worker is not eligible for a government subsidy in the health care exchanges. Thus, two families with the same income could pay very different rates for their health insurance because one was offered insurance at their job and the other was not.
Even worse, the phase out of the subsidies is quite abrupt. While the amount of the subsidy declines with income, at the top end of the income scale it just stops. Subsidies are available for people and families below 400 percent of the poverty level. For a family of four, that is about $88,000.
A family of four earning just under the limit might receive a subsidy of around $5,000 based on paying 9.5 percent of their income toward health insurance and the public figures so far on what plans are likely to cost in the exchanges. If the family earns just a little too much, they get no subsidy. Thus, a small raise could actually be a financial burden to a family near the income limit for the subsidies.
As these quirks in the law become more widely known, I suspect people will find them grossly unfair. Large differences in subsidies for people in nearly equivalent economic conditions will not sit well with people. The solution is likely to be more subsidies to make things more equal, leading yet again to higher government costs than advertised.
#3 Restricted networks of doctors & facilities
The third big problem with Obamacare that is beginning to come to people’s attention is the quality of the plans that will be offered on the exchanges. According to Robert Pear in the New York Times, people who purchase health insurance on the exchanges in many states may be offered only plans that allow access to fewer doctors and hospitals than many privately-purchased plans and employer-sponsored plans include.
In other words, people may not have insurance coverage that allows them to see the doctor they wish. The reason for these restrictions is that insurance companies want to provide policies through the exchanges at the lowest possible cost because they assume that those people shopping for insurance in the exchanges will be looking for an affordable policy.
Which brings us to the health care as a “right” battleground…
So prepare for the next battleground of health care as a “right.” Once people have fully received their free or subsidized health care courtesy of the government and taxpayers, the cries will grow in volume to make these plans the equal of the best plans available and to reduce the inequities outlined above. After all, why should people get lower quality health care simply because they have less money? And why should health care be a financial burden on anyone?
Given the country’s recent history, once that argument begins it will be won by those demanding access to all doctors and hospitals and more subsidies for those falling through the cracks. At that point, all cost restraint will be lost (not that there is much going on now). If we head down that road, government-paid health care costs will bankrupt the country.
Indeed. Starting a huge entitlement program when the country is $17 trillion in debt. You can’t make this stuff up. It will end very badly.
Some good comments on single payer.
