Obamacare, Gov't Insurance Exchanges, & The Coming Price Explosion

One of the features of the Patient Protection and Affordable Care Act, the health-care reform bill colloquially known as Obamacare, is the creation of insurance exchanges that will offer heavily subsidized policies and coverage for people who cannot get insurance through their employers.

In projecting the program's costs, the Congressional Budget Office figures that about 7 percent of the workforce currently covered by employer-provided insurance will drop those policies and sign up for the subsidized insurance. That estimate - and hence, the cost structure of the program - has been challenged by sources such as McKinsey & Company, the consulting firm, which reckons a far higher percentage of workers will opt out of their current job-based plans. In a survey of employers released in June, McKinsey found that 30 percent will "definitely or probably" drop their coverage as Obamacare kicks into high gear in 2014. Among "employers with a high awareness of reform, this proportion rises to more than 50 percent," says the report. Why? It will be cheaper to pay fines than to provide coverage.

If those estimates are accurate, the cost savings ObamaCare supporters tout are a pipe dream.

Glenn Morton, the author of the new book Passing Obamacare, has worked for nearly two decades in the health-insurance business, most recently as a broker who helps employers find better deals among providers. In a discussion with Reason's Nick Gillespie, Morton adds another problem with recently released Obamacare rules: The mandate to reduce the percentage of insurance costs that go to administrative costs effectively means that insurance brokers' commissions will be either drastically cut or reduced altogether. If brokers' role in hunting for better coverage plans is eviscerated, argues Morton, companies will lose their main ally in the search for affordable and dependable coverage plans. The result, says Morton, will be that more and more companies will cease to offer insurance, thus driving even more people into the insurance exchanges and the cost of Obamacare up and up. CBO says the cost of giving subsidies to 16 million individuals over Obamacare's first decade will be $466 billion alone.

About 4.30 minutes. Shot by Meredith Bragg, Jim Epstein, and Josh Swain. Edited by Anthony L. Fisher.

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[Y2kplaya92]

Obamacare is terrible.

[Shanockdotcom]

@stephaniemroin In my vision for America, there is a place for both of us, if you can only let go of the idea that I should have to live as you dictate. You can have your public health care, welfare, public schools, weed, and campfire kumbaya. I can keep the money that would have been taxed, and spend it at my own discretion, with the free market at my disposal. In your vision of America (35% tax? Really?), there is only a place for those who think like you, and to heck with everyone else. (3/3)

[HealthReformStrategy]

@pluto4847 Well, do you have disability coverage? Health insurance does not cover wages, only medical costs, but disability does. Short-term disability can last up to a year, but is typically 3-6 months. Long-term disability can start after the third month, but normally starts after the 6th month. You should talk to your HR department to find out. Sometimes you can have it and not know it because the company pays it 100%. If not, ask about buying voluntary coverage like Aflac.

[pluto4847]

@HealthReformStrategy

Continued...

Oh I won 't die if I opt out of surgery, it just means I will continue to limp and eventually I will be permanetely crippled.

So I had to weigh up which is better: a) Live with the pain I have now, continue to work, and keep paying into my group health plan; b) Have major reconstructive surgery on my leg which will keep be in bed for 4 months, no earnings; or c) Have a brace on my leg to hopefully correct it.

So option b is definastely out--no surgery.

[pluto4847]

@HealthReformStrategy

I agree with a lot of what you say, but lets face facts. Health insurance can't save us. Whenever you have time off for an important procedure, you give up your abil.ity to earn a wage.

So yes its good to have coverage, but as soon as you are olut of work, and you no longer earn money--it just can't be achieved.

So my doctor wanted me to have a procedure that would make me into a vegetable for 4 months. So i decided, its not worth it. I will live with the pain.

[pluto4847]

@HealthReformStrategy

Hello, I hear what you are saying. We should all be responsible for our own health. I take responsibility. I'm on a company group health plan. If I get sick, I should be ok right?

Wrong. I went to my doctor today, and oh yes my insurance will cover the operatiuon I need, but here's the catch.

I will need 4 months off. Sorry, can't do that. As soon as I stop earning, I won't be able to continue paying into my plan.

So no surgery this time. I can't call off work.

[haldonrichardson1]

See "Panty Wad Proxitoligist George Will Fights Commerce"

[HealthReformStrategy]

Hi. I'm Glenn Morton...in the video ;o) I recently spoke at the "Enough is Enough" rally, sponsored by Coffee Party USA. In that speech, I gave President Obama 2 WEEKS to STOP defending Obamacare in the supreme court, or I would stop it for him. The video for the speech (the live feed was cut during the speech...was broadcast by freespeech.tv!) Search "President Obama Given 2 WEEKS NOTICE TO STOP OBAMACARE...AMAZING VIDEO" to watch it!

The time to stop Obamacare is NOW! Let's ROLL!!!

[cesar333]

We are all a medical emergency away from financial ruin. Health insurance is like crossing a busy 4 lane highway. If your lucky youll be fine, but one hit and your done.

[kbar8888]

@cesar333 Did you know that Øbamacare was fashioned after a plan to control the energy industry? One of the communists at the Midwest Academy, which Michelle and Barrack were members, came up with a similar scheme in the 80s. When energy prices were rising, they proposed to form a Gov't backed corporation that would compete with private companies by selling energy to poor families. They knew then what they know now, that with tax and regulatory authority the Gov't exchange would win control.

[shaithis80]

@cesar333 all I can really say is that hopefully the next generation of doctors/nurses/healthcare professionals are just not greedy Wishful thinking.

[shaithis80]

@cesar333 agreed. It seems to me though like having a policy nowadays mean you are agreeing to a set of terms where if you are hospitalized, you are still going to be out money. Better to go without health insurance perhaps? Then again from a single standpoint, is paying a high cost worth extending your life. If the government and those in healthcare have looked beyond a persons skills and just seem them as individual ATMs then are we screwed as a nation.