I wanted to write this article because it's really been shocking since the Supreme Court's Decision to uphold Healthcare reform, the lack of understanding most people have about healthcare reform and the misinformation being passed around regarding it. A few weeks ago, I did a webinar for about 1,300 HR and Insurance Professionals on Healthcare Reform.
We received over one hundred emails after that with questions about healthcare reform and one overwhelming message, "thank you for finally being the one to tell us about healthcare reform." Because there are no real sources out there, most HR and Insurance professionals just don't understand it.
Don't forget the bill itself is thousands of pages, there are 13,000 pages of rules and regulations, 180 government committees and bureaus, and they haven't even gotten started yet. What's even scarier is my interaction with average Americans, not in the insurance industry, who believe healthcare reform means they either get free health insurance or "free surgeries."
The first thing you need to realize is Healthcare Reform is here to stay and it is not going anywhere. Don't be fooled by politicians rhetoric, whether republican or democrat as they try to get elected, and don't expect to get any real information from tuning into any major news station.
Major news networks haven't posted any real truths about healthcare reform whether they are liberal or conservative. Why not? We live in a world of sponsored news, CNN, Fox, MSNBC, etc. What commercials do you see during your favorite TV Shows? Follow closely and you will see Pharmaceutical, Medical Supply, Insurance companies, etc.
This means the only way you are really going to find the truth is by opening your eyes and doing your own research, and you better start implementing some really outside the box "innovative" programs to lower healthcare costs, because Healthcare Reform isn't going to help. So, here's a January 1, 2014 reality check for those of you sitting on the sidelines
- Individual Mandate (penalty), $7.92 a month in 2014; it's so weak, it's a disincentive, and healthy people will drop off coverage and buy it only when their sick, causing adverse selection, and rates to skyrocket.
- Guarantee Issue with no -pre-ex is great for people who haven't had access to healthcare, but there's no "real" penalty to force people to buy it early. There is also no incentive for people to be healthy and maintain a healthy lifestyle, because they can always buy health insurance to cover their condition, anytime for any reason, at the same price had they always bought it all along.
- Younger Americans insurance rates will skyrocket to subsidize senior citizens under the new 3:1 Rule
- Pharmaceuticals, Medical Supplies, etc. were not reformed.
- Medical Malpractice wasn't reformed
- Many insurance companies will end up making more under the new mandated loss ratios than before because of rising insurance costs
- Starting in 2018, the majority of Americans health plans will qualify as a Cadillac plan and be charged a 40% tax.Why does anyone believe costs are going down under Healthcare Reform?
About The Author
Jonathan Edelheit is the president of Free Health LLC, a leading US and International insurance and healthcare media company that specializes in "niche" industry health insurance, employee benefits and healthcare magazines. Under Free Health LLC, Mr. Edelheit is Editor-in-Chief of Benefits Live Magazine.
The magazine includes four industry-specific publications, including: Corporate Wellness Magazine, the only US and International magazine dedicated to health and wellness in the workplace, the Voluntary Benefits Magazine, the Self Funding Employer Healthcare and Workers Compensation Magazine, and the National Healthcare Reform Magazine, the only magazine dedicated to the newly implemented US Healthcare Reform Law.