Obamacare or the affordable care act is a controversial healthcare program started under Barack Obama. ObamaCare is essentially an experiment in socialized medicine that many on the left have wanted for years. The single payer system has been a massive failure for other countries, with extremely long waiting times,(hours, days, weeks , months sometimes years) for non emergency care as well as the rationing of healthcare, the government deciding who gets what. Despite all this democrats want to have the signal payer system and ObamaCare was just a step in that direction.
So let’s dive in to the facts.
ObamaCare requires that insurers provide at minimum 10 essential benefits. These 10 benefits were not always found in every insurance package under the old system, which is one reason that premiums are up 49% for the average person.
Other major factors are the 3:1 price mandate and the law that forces insurers to take on people with pre existing medical conditions. The pre-existing condition raises premiums because of the influx of already sick people into the health system forces insurers to raise prices so they can afford to pay for the new sick people.
The 3:1 price mandate means that insurers can only discriminate by age and health at a 3 to 1 ratio. This means that insurers can only charge up to 3 times the amount for their highest priced customer than their lowest paying customer.
Think of healthcare like this: A big pot where everyone pays in so that when someone needs a service they can get it without paying much out of pocket. Under the old system the average ratio between highest and lowest paying customers was about 5:1. In order follow this rule they have to raise the young people’s premiums so that they are 1/3 of the highest paying customers instead of 1/5. This has shifted the burden of pay to be less on the sick and the old to more on the young and healthy. This is problematic because some young people, especially wealthy ones may choose to go uninsured rather than pay for expensive coverage they rarely use. If the young and healthy are the ones paying more into then ever before, insurance companies can’t afford to have them opt out. This is part of the reason insurers like Aetna are pulling out of the exchange in many states.
ObamaCare’s Employer Mandate requires businesses with the equivalent of 50 or more full time employees to provide health insurance.In order to take on this cost many small businesses have either cut back on hiring, lowered wages or both. Gallup Polls show that 40% of small business owners say that Obamacare causes them to hire less. This along with a number of other Economic factors has led to the lowest Workforce Participation in several decades.
In short: the Affordable Care Act has made healthcare less affordable. Young people and businesses are hurting and this was the plan along. ObamaCare is Just a stepping stone towards a signal payer system.