by Steve Rhodes
The Patient Protection and Affordable Care Act, otherwise known as the health reform bill will impact almost every American. One of the most important ways it will affect individual health insurance is that insurance companies will not be permitted to deny insurance to those with preexisting illnesses. Another important affect is that all Americans will be required to hold insurance. Insurance companies will be prohibited from placing annual and lifetime limits on coverage. Group health exchanges may also help to reduce the cost of insurance plans, giving individuals the buying power of large companies. You will be able to purchase insurance through a state exchange from 2014. The exchanges have yet to be formed, but the intended goal is to provide more affordable and subsidized individual plans. The Obama effects on individual health insurance addresses the biggest weaknesses in the individual health insurance market. Easy To Insure Me
As the reform bill was passed policy rates were climbing. A report revealed that members of the middle class were losing health insurance faster than any other income group. Those who missed the Government provided safety net because of their income were thrown on the mercies of the individual market. Here, insurers have been denied coverage based on preexisting conditions and are vulnerable to charges of high and ever increasing premiums.
The limits insurers placed on who gets coverage is one of the three major problems that needed to be addressed in the individual market. The other two are the affordability and whether the policy would pay for what is needed when the insured gets sick. A study found that excluded conditions varied by insurer. In a 2001 study by the Georgetown Health Policy Institute, researchers 37 percent of applications were rejected. There were insurers who would turn you down if you had hay fever. The public thus was a victim of a roulette insurance market. How easy is it for individuals to wade their way through the market to insurers who would cover them is a question. Although federal law requires insurers to sell policies to certain people who lose group coverage, including those who lost their jobs due to lay offs; but places no limits on what an insurer can charge. In February 2010, Connecticut announced that health premiums for individual medical plans rose in price by 20 percent over in 2009. In this void have stepped some states in varying degrees. Maine, Massachusetts, New Jersey, New York and Vermont required insurers to sell individual policies to everyone, irrespective of their health. Washington state required insurers to take individuals with some health problems. While, Iowa required insurers to cover preexisting conditions in new applicants, if they had insurance previously for those conditions and did not let the insurance lapse.
Of those who do buy their own insurance the health insurance market works well for some; but, not for others. In the individual market prior to the reform bill, in order to lower their risks insurers preferred the healthiest applicants. In most states, insurers may consider the health history of the applicant in deciding coverage and its cost. Unlike group plans offered by employers which provide coverage to everyone, there is no guarantee in most states individuals can obtain insurance. It has been realized that solving problems in the individual market would improve the health care crisis. In California, Connecticut and several other states regulators have taken actions against insurers who revoked individual coverage after policyholders fell ill. Before the President won the election Senators Ron Wyden, a Democrat from Oregon, and Bob Bennett, a Republican from Utah were supporting a bill that would shift workers getting coverage through employers to purchase their own insurance. The intention of their proposal was to break the link between employment and insurance. The two supporters of the bill believed this would let people keep their coverage even when they lost or switched their job. The proposal would have required everyone to have coverage and insurers to sell insurance to all applicants. The health reform bill has addressed these failings. Both presidential candidates had expressed the desire to improve options for people who buy their own coverage. Candidate Obama wanted to allow individuals and small firms to have the bargaining leverage and purchasing power of latge firms by creating ways for individuals to buy insurance in groups. Advisors to candidate McCain had acknowledged the current system was broken. Douglas Holtz Eakin, who was a senior policy adviser noted that he did not want to give the impression the individual or small group market is a good place to be, as it was not
The public hospitals have been at the vanguard of the victims of inadequate and absent coverage. They have provided for the uninsured and those under insured by Medicaid, that reimburses them at below cost. They are also unable to compete with private and nonprofit hospitals for patents with private health insurance coverage. Yet, the cost of providing care to the uninsured and under insured has climbed and taxpayer support remained static.
Currently employers are looking to shift more burdens to their employees due to rise in the cost of health insurance. A Reuters research team in analyzing claim data has discovered that smaller employers saw costs rise the most. According to a report released in March 2010, the cost for an employer to offer individual plans to workers increased by 43 percent over a eight-year period. The amount employees paid for the single plans increased over 64 percent.
Large corporate employees have enjoyed the most secure and highest quality coverage in the nation during their employment. They have not been victimized during their employment with revocation or denial due to preexisting conditions. Nevertheless, a recently released annual survey by the National Business Group on Health has indicated that the impact of rising costs means this island of safety is about to be buffeted. This surveyed large employers indicated they were considering shifting more of the cost on their employees.
Harvard researchers looking into what portion of bankruptcy filers filed for medical reasons found some enlightening information. They found that illness caused the majority of filings. The study looked at a year that preceded the housing bust; but reveals what is the general scenario absenting this reason. The larger segment of filers were covered by insurance they lost or proved to be inadequate. Majority of these were middle class homeowners who had college degrees. The study revealed the vulnerability of Americans who were literally one major illness from bankruptcy. There are big Obama effects on individual health insurance coverage. Certainly there are due to be major Obama effects on individual health insurance.
A cartoon explanation of why we need a public health insurance option. Now that the health care bill has passed, my friend Andy Lubershane (the animator) has made another video about a topic near and dear to my heart: Climate and Energy. Please check it out here: www.youtube.com Animated by Andy Lubershane. More comics at www.earthlycomics.blogspot.com Note The data in this cartoon is supported by this report: www.ourfuture.org which includes a lot more detail on current proposals for a public option.
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In the end its all about trying to keep a balance between freedom of the individual versus the rights and responsibilities of being a member of a Nation. No society can exist if the individual is given total freedom to ignore the rights of the many. Access to health provision is seen by most western Democracies as a right for all citizens in doing so they run UHC systems which cost half that of the US. . Please see “the U.S. Healthcare system in international Context:”
@TheRandiniarolla For if you don’t pay your taxes, the government comes and takes you away. and dave I will accept the laws, but I don’t have to like them.
If you chose voluntarily to stay in or move into any society, objective or not by default you choose to except the laws, rules and values of that society. If you pay taxes you might or might not like to pay them voluntarily but you are certainly obligated to pay them. If you choose not to then you are free to leave, no one in a modern western style democracy forces you to be a citizen of that society.
@Seargent363 how exactly is paying taxes for healthcare involuntary (in a country like say Canada where the majority of people are in favor of public care) and paying taxes for police and military “voluntary”?
@TheRandiniarolla Okay.
1. There are is still a police force, armed forces, and public courts in an objective society.
2. In an objective society there are still taxes, but they’re voluntary.
The oldest constitution in the world! Yaaay! Because nothing has changed since the 18th century!!!
do you have a constitutional right to healthcare?
@Seargent363 How about people who are wealthy enough to have personal security? Why should they be “forced” to pay taxes for public police when they don’t need the safety provided by a public police force? Or a person who never drives or doesn’t own a car, why should they be “forced” to pay taxes for public roads?
@mandolinic He is what is know in America as a Libertarian in the UK we would call them a tight arse fool. I would advise you do not get into any kind of conversation with him like arguing with the Borg. It would bel pointless but can be great fun if you just like taking the piss out of them.
@mandolinic I believed that altruism is an evil and a man should be able to choose if he wants to give money to someone. I think that there should only be private charities and not public or government forced. The only job as the government is to protect rights, not to give its citizens whatever they want.. My issuance is top of the line and is private.
@Seargent363 “Your last paragraph is completely unacceptable”
It was a joke of course, yet I’m a little surprised at your reaction to it when you’ve just said “We shouldn’t be forced to take care of people who couldn’t afford health insurance”. That statement completely revolts me as a human being.
@Seargent363 “mine went from 14.00 to 400 dollars.”
How do you feel when I tell you that I pay about the same amount of tax as you, but my health insurance is included in those taxes?
BTW, I am free to go private and/or buy top up insurance if I wish, but I don’t need to.
@mandolinic The founders wrote the second amendment so the people have a chance to defend themselves against invaders on their land and become self reliant, which all people should be. Murder is allowed if it is done in self-defense and you feared your life was on the line.
We shouldn’t be forced to take care of people who couldn’t afford health insurance, and the current law raised premiums, mine went from 14.00 to 400 dollars.
Your last paragraph is completely unacceptable
@davijeph Ummm, can you please reply to my comments so I know you did. Anyway, Objectivism is not anarchy, for there are still laws against violence, coercion, and initiation of force. There are also still cops, local courts, and armed forces. I can accept the laws, but I don’t have to like them.
Two things the average Brit can’t understand about Americans:
1. Their love of guns despite murder being a capital punishment offence.
2. Their hatred of “socialised” medicine despite many being unable to afford insurance.
Yet therein lies a solution all future healthcare problems in the US: Anyone who falls ill but can’t afford healthcare will be used as legal target practice by his fellow gun-loving citizens. Solves two problems at once. I’m a genius!
As an outside observer, it seems to me that government run socialised medicine is never going to acceptable to many Americans and it’s never going to happen.
Public health is the term.
Works great here in Australia. You poor americans are a laughing stock in other developed nations.
I read that 50% of bankruptcies in the USA caused by medical bills? Ridiculous!
Really can’t see how people can be so resistant to something that is for the benefit of ALL. Being dependent on a profit obsessed industry? Very scary.
YES!
Do I hear propaganda???
All democratic western nations are a combination of capitalism, socialism,and liberalism only the mixer of the parts will be different to each Nation not the components. In excepting to be a citizen of those Nations you by default except the laws, rules and norms of that society or Nation. if you are not willing to except those laws you are free to leave it and choose another Nation. No Nation or society can survive if all individuals are allowed to live by only their own rules, result anarchy.
@davijeph I’m guessing you are replying to me. But, you combined socialist with capitalism, and those don’t go together. The only laws in an objective society are laws against violence, coercion, and initiation of force. I don’t seek an armed conflict, for that is violence without purpose and is what objectivist oppose to.
@TheZajac123
lol you are right they don’t give back at all…..oh wait i think the top 5 percent of people pay for over 50% of our income taxes, but that isn’t enough is it? lets take all of their money……..better yet why don’t we take everyones income and just split it up evenly regardless of what they do for a living etc etc
Libertarians “shouldn’t be forced to do things against their free-will,” true. Except in a modern democratic capitalist, socialist, liberal society if you are unhappy and not prepared to except the democratically arrived at laws and standards within that society you are free to leave, free to peaceably demonstrate against those laws you object to. Free to stand in elections and chance those laws. Free to show the courage of your convictions free to break those laws and take the consequences
@TheZajac123 What about the different airlines, for it is the airlines who crash the planes usually and people already choose such airlines based on how much they cost. Brand loyalty only remains if the product remains good, for do you remember “new coke.”
@TheZajac123 Are you missing the point that there still is a government. I view that men shouldn’t be forced to do things against their free-will. Well people should rely on themselves to succeed without thinking of how the government can protect them. I am mainly against charity/welfare because, I view altruism as an evil. Now the BP incident, they weren’t thinking rationally because, they didn’t want to pay for inspections and they fucked themselves over because of it.