The Harsh Reality of ObamaCare

It seems as though most people who support ObamaCare are oblivious as to the reasons why the majority of American’s oppose the law.  Nobody that opposes ObamaCare denies the fact that the law has in fact provided healthcare to a large number of Americans who could not or, in many cases, chose not to afford healthcare insurance.  As well, they do not deny that ObamaCare has provided for the vital need of healthcare insurance to those with pre-existing or bank account breaking health issues who have, in the past, been denied insurance.  These are certainly not the reasons that the majority of Americans oppose ObamaCare although they have been made out to be so by the liberal media and the president himself.

The reality of ObamaCare is that it overly burdens the vast majority of American’s.  There is no denying that before ObamaCare, taxpayers were already picking up the healthcare tab created by the uninsured, a problem that has been in need of repair for decades however, ObamaCare does not address the real issues of cost, it simply makes the problem worse.  In addition, the progressive law passes an incredible amount of inequality on to those that carry the burden.

In an effort to provide what President Obama once commonly referred to as “Affordable HealthCare for All”, instead what has been delivered is a not so affordable healthcare mandate that has been rejected by the uninsured.  In addition, under the regulations put forth by the overly intrusive law, highly subsidized healthcare insurance, provided to many who once had none, often exceeds the quality of insurance many who have historically remain insured were once able to afford themselves. 

Now having to pick up the brunt of the cost burden, a healthy, middle class, middle aged wage earner has, in far too many cases, had to sacrifice the level of healthcare coverage they could once afford in order to keep their premiums within their budget.

What Happened to the Individual Marketplace

To offset the cost of the mandates ObamaCare places on individual insurance coverage, rates on the individual insurance marketplace have increased across the board and have been doing so since just after ObamaCare was passed in to law back in 2010.  Additionally, insurers have had to drop many of the plans they once offered due to the restrictions and mandates imposed by the law.  Insurers have either found certain plans to be non-compliant or no longer cost effective to maintain.  By eliminating these plans they have also removed much of the choice from those that have historically paid for their own healthcare insurance. 

What many have long believed might happen to the individual marketplace is no longer speculation, it is happening now.  Higher rates and fewer choices are a fact of life under the constraints of ObamaCare.  The subsidies and entitlements have to be paid for somehow and by somehow I mean by resting the burden on the shoulders of the middle class!

Affordability is not reformed into healthcare by ObamaCare, instead it is forced into the healthcare plans of those that meet a certain domestic and fiscal criteria.  A large portion of the funding stream for this progressive form of affordability is created through a wide array of taxes and fees on health and medical related industries, the burden of which is simply passed on to the consumer.

ObamaCare is Disliked by Consumers

Maybe the harshest reality ObamaCare must face is its rejection by the consumer.  Only 3 million formerly uninsured individuals chose to participate in the federal mandate by purchasing healthcare insurance on one of the state or federal healthcare exchanges during the six month, 2014 open enrollment period.  For years leading up to and right to the launching of the HealthCare.gov website, those involved in the selling of ObamaCare regularly touted high turnout expectations yet when the dust settled, enrollment of uninsured America’s fell a full 4 million short of the target set by the Obama Administration. 

And the Obama Administration has recognized the laws rejection by the consumer as it recently lowered significantly its enrollment expectations for 2015.

The Obama Administration originally expected 6 million individuals to be added to the list of formerly uninsured, during the 2015 open enrollment period, which is currently under way.  However, in lieu of the laws unpopularity, the administration lowered its enrollment expectations by 3 times, to a mere 2 million.

Insurers Face a Harsh Reality Also

For insurers, the harsh reality of ObamaCare is no better than what consumers encountered as the law is likely to face a full repeal assuming it does not implode into itself first.

For now, those insurers who have agreed to participate on the healthcare exchanges are shielded from loss until 2017 through a provision built in to the law which provides them fiscal assurances during a three year transition period.  The transition period was demanded by and granted to the insurers for talking on the risk while the marketplace takes time to stabilize and they gain enrollment. 

The big payout for insurers to participate on the healthcare insurance exchanges comes from the claim made by the Obama Administration that 25 million of America’s uninsured would add themselves to the individual market place by 2016.  25 million new customers creates a great incentive for insurers to compete for this added business but the low premiums, which are key to attracting the uninsured, have proven difficult to produce.  Instead of making healthcare insurance more affordable, a laundry list of essential benefits mandated to be included in every insurance package, has driven costs up thus making the healthcare insurance too costly for the majority of the uninsured even when they qualify for subsidies.

Insurers cannot be pleased with the low enrollment turnout of 2014 nor can they be happy with the low expectation the Obama Administration has for the 2015 open enrollment period.  As it looks now, enrollment will be 5 times short of the original goal heading into the 2016 enrollment period this time next year.

And we have to assume that for now, while being provided loss protection by the taxpayer, insurers are holding premiums down as low as possible, likely at the request of the Obama Administration.  Losing their protection from financial losses come 2017, it is expected that premiums will rise.  This is as concerning to the insurers as it is to the consumer as higher premiums will drive many of their customers back to the rolls of America’s uninsured.

You can bet your bottom dollar that insurers are watching close, crunching the numbers and assessing their risk on a regular basis.  Once their risk becomes too high, rest assured, they will end their participation on the healthcare exchanges.  When one insurer leaves it will not be long before others follow and eventually there will not be enough insurers participating on the healthcare exchanges to adequately cover consumers and ObamaCare will crumble.