An ObamaCare Canary is Dying

When Obamacare was passed in 2010, the lawmakers wanted to provide immediate relief to people with pre-existing conditions that did not have medical coverage and could not get it because of the prohibitive costs.  Congress created a program and funded it with $5 Billion.  This money was intended to last until Jan 2014 when the bulk of the coverage laws become effective.

The canary part of this that the money earmarked for this program is running out.  In fact the administration has decided to close enrollments to new applicants.  The administration wants to make sure the 100,000 that enrolled will have that money available to them through the end of the year.

Some would ask if there were other things that could be done other than halt new enrollments.  The administration had already raised the enrollee cost from $4,000 to $6250.  They had also cut some of the monies that it paid to providers of health care to these patients.  Finally, they limited the number of pharmacies that could dispense the specialty drugs available to patients through the program.  Although this did help, it was not enough.

This noble effort has helped 100,000 people in need.  It is only for the rest of the year that new enrollees won’t be able to take advantage of the program because come Jan. 1 of 2014, they will be able to buy insurance through any carrier without regard to their pre-existing condition(s).  It is estimated that about 40,000 people will be affected by the budget miscalculation based on an enrollment rate of 4,000 individuals a month.

The bigger issue is that this relatively small program had costs excessive to original estimates.  Critics of Obamacare have been preaching for years that the costs were grossly under-estimated.  This is at least in part some proof to support their allegations.

As mentioned previously, in order to sustain the program, monies were cut that were due to medical care providers.  One thing that prognosticators have been saying is that medicare and Medicaid will do the same thing.  This will effectively make it much more difficult for this patients to find doctors who will help them.

Another part of the plan that faces heavy criticism is that some healthy individuals will forego getting coverage until they really need it.  They will buy insurance coverage after they find they have a condition.  If this program is any indication and costs are going to be higher than anticipated, it stands to reason that there will be more people foregoing the coverage to save those insurance premium dollars.

Congress has budgeted 100 Billion dollars a year for ten years to help citizens pay for health insurance premiums.  What happens when the cost overages in this part of the plan mirrors what has happened with the stop-gap plan we previously discussed?  Does Congress cut eligibility?  Does Congress instead cut subsidies for our premiums?  Maybe they do like in the current program and cut provider payments?

House leaders have offered a solid proposal that is likely to gain bi-partisan support and protects those who most need insurance should implementation of the law be postponed because the exchanges aren’t ready.  There has been no word from the White House in response to their letter.

5 Comments

  1. Comment by Ed Makan:

    Remember what Nancy Pelosi said about this Obama Care bill prior to its passage. Just pass it and we can all read about what’s in it afterwards. The devil in the details. Another moronic comment by a moron.

    Obamageddon or Obamination has started with this so called health care bill.

    Why isn’t this question being addressed concerning the health or death care system in America?

    Why are so many Americans so sick all the time?

    Could it be the Standard American Diet(SAD) of overprocessed, fragmented, devitalized, chemicalized, GMO ladened, dead and stale material which passes off as food?

    Americans are overfed and undernourished.

    Diseases of deficiency run rampant. Obesity rules the land. We have become a nation of apathetic sloths.

    The root of the problem is a piss poor diet of all this fast, chemicalized, overcooked slop.

    In all my travels around the world over the past 45 years, I have never seen a country with one of the highest standards of living as the US with the high numbers of the ill, ailing or dying. What is causing all of these illnesses? Do we need to keep studying the problems to death for generations?

    Rather than focus on treating the problems, what about spending more time on prevention.

    Obamination Care is nothing more than money being taken from you and transferred to those in the medical-industrial complex and insurance companies who helped finance his ascendancy to the White House. More scams will follow to screw you of your money.

    Americans get the government they deserve.

    Wake up and get involved and educate yourself of the coming conflicts as Mary Harris “Mother Jones” spoke about.

    Another question about Obama Care. If this program is suppose to be so good for Americans, why doesn’t it also cover those in Congress?

    Your government is not only worthless, they are dangerous.

  2. Comment by jpohl:

    I am a big believer that elections have consequences. We got what we deserved. My biggest fear is that this may fail so badly and is not reversable. That would leave us with only 1 final option….a single payer system.

  3. Comment by Kate:

    It is expensive to be healthy here in America. First of all, America has the worst food quality (overprocessed, GMO, etc) that leads to described pre-exist and chronical conditions (obesity and other health problems connected with it. And guess what? If you go for ANY food store, you will see just a few organic items there (Whole Foods claim to sell organic, but if you look at UPC code – it is not!) and they cost a fortune. So they give you a choice: pay more and be healthier, or pay less and get diabetes, obesity, heart diseases and many many others; and don’t worry – Obamacare will be able to assist you with money you pay to health care providers, so they will keep you alive in order to get more money from you (can you see a line in what I am saying?)….So, you see, the only who can win in this situation – those who chose to consume Cola and pizza along with BicMac, who do not pay for memberships in gyms and do not care on their health.
    What about those who DO care about their health, who already spend more to get healthy food, who leads active lifestyle, workout, do not smoke or consume alcohol? Sure they need less doctor’s assistance in comparison to the first group. They will need basic coverage with higher deductibles and out of pocket money. Plus, consider increasing insurance premiums…..This is how our government motivates people to stay healthy? It looks more like a penalty of being healthy (along with marriage penalty in income tax changes)! What a scam! Although, the overall idea is very good – every american should have healthcare, it is still very expensive to go to a doctor even if you have insurance, not speaking if you don’t have it. Canada has free health care, the same in Australia. However, this idea is performed in a very bad way – through penalties and employer mandates.
    Speaking about employers…. How do you think, will employers create jobs in this situation? Right now they cut down the hours, they tend to hire 2 or 3 part timers instead of a full time employee. This is about smaller companies. Corporations go in a different way (I work in Staffing) – they eliminate jobs here and hire foreign companies for let’s say – call center. For example, a worker in India will do this job for $2-3 per hour while American worker will ask $10-12 for the same job. Less costs for rent or buildings maintanance for a call center plus no required Obamacare for employees (since you BUY a call center services from another country). Unemployment will increase, income among Americans will decrease, will lead to mass poverty, thus more people will try to get unemployment and Welfare and Madicare or Medicaid. In result – more burden on those who pay taxes and more pressure on social politics and budget.
    We may face it. Let’s see, we just in a few months away from it.

  4. Comment by Gian:

    You are so wrong. My children who are under 26, DEFINITELY befniet already from the provisions of the Affordable Health Care Act. You guys are living in the Stone Age. Have you ever been to Europe? Have you ever been denied coverage because of a totally unrelated “pre-existing” condition? This law will enable us to move forward and actually begin cutting healthcare costs. THIS is what will bankrupt the US not the provision of universal healthcare, shared by all Americans, as it is in every other civilized country on this planet. Last of all, rationing is what we have NOW in our healthcare system. It’s immoral and despicable.

    • Comment by jpohl:

      I think there are many great things in the ACA. My problem with the ACA is that it is a poorly written law. It was jammed through congress at the 11th hour will have many un-intended consequences.

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