Summation of Problems with Obamacare

There is no doubt that this country is in dire need of healthcare reform, However, the current program has numerous flaws and needs to be fixed. In my opinion as a health insurance broker, Obamacare needs a major overhaul.

The politicians need to use common sense and leave their egos at the door to fix this program and make it workable for all, not just a ...chosen small segment of the populace.

Before my liberal friends point to Medicare as an example of a well run government program, let me remind you that Medicare today is a huge drain on the financial stability of this country. Citizens in this country have worked hard and earned the right to government managed healthcare, however with the number of baby boomers coming into the program in the next few years, Medicare will present an even greater financial challenge to an already financially challenged government.

Therefore, it is totally out of the question that a single payer system of healthcare reform can even be discussed at a time of fiscal crisis within our nation.

The major problem with this current reform called Obamacare is that a liberal administration placed too much emphasis on the lower income uninsured and did not consider the effect on hard working middle class citizens.

For every client that I consult with that realizes a significant benefit from Obamacare, there are at least three who are seeing significant rate increases up to 300% of their current plan.

The problem is twofold in my opinion as a health insurance consultant. The program includes too many mandated health benefits which raise costs and does not allow someone to purchase a simple major medical plan that simply protects financial liability. For those who do not qualify for premium subsidies, the premium cost increases are astronomical.

In addition, the Obama administration rushed a program to market that utilized the internet as a major information and enrollment tool. They did not perform proper Beta testing of their platform nor did they wait until the proper counselors were certified to advise clients. This has resulted in mass confusion for the consumer and a general waste of everyone's time in trying to access and gain knowledge from a system that is not functional.

What needs to happen here is that a timeout needs to be taken to fix this entire flawed program. In my opinion, this is not a major undertaking. Change the law to allow people to keep their current health plans like Obama promised, allow lesser benefit, lower cost catastrophic plans to be included and fix the extremely flawed web based system that now exists.

It is also my opinion that citizens need to take more responsibility for their personal healthcare and not rely on the government to educate them as to what are good health practices. In short, everyone needs to chip in to create a healthier nation with affordable healthcare.

The Major Problem With Obamacare

I am a health insurance broker in California and feel qualified to speak about the reality of Obamacare in my state.  The entire success of this program is based on enough healthy young people signing up to offset the high cost of managing the health of those with diseases requiring expensive treatment.

Here are FACTS from my state.  Prior to Obamacare, the premium range for a 30 year old Californian was $75 to $150 per month for coverage geared to a healthy young person.  Even at these reasonable premiums, many of these "young invincibles" did not sign up, as they simply felt they were healthy and would rather pay this money for recreational purposes rather than health insurance.

I just ran Obamacare premium quotes for a 30 year old in Orange County earning $30,000 a year which entitles this person to a premium subsidy.  I feel this income level is average for my state.  The cost range of plans available to this 30 year old ranges from $146 to $213 per month.  The $146 plan includes a $5000 deductible, $70 doctor copays limited to 3 visits per year, $120 urgent care copay, and $19 for generic drugs, some of which can be purchased at Costco for as low as $4.

Running a quote for this same 30 year old at today's 2013 pricing, I can sign him up for a $3,500 deductible plan with $40 doctor copays, $15 generic Rx and the same no charge preventive care as with an Obamacare plan for $94 per month.  He would also have the option to go to a $6,500 deductible at $75 per month.  These plans will not be available in 2014, as they do not meet federal mandated coverage standards.  Therefore, I do not see many of the "young invincibles" rushing out to buy Obamacare.

This program is doomed to fail because a group of politicians with egos put together a flawed attempt at healthcare reform.  I am a huge advocate of healthcare reform, as the cost of healthcare in this country is waaayyyy out of control.  However, this particular plan in its current foremat has two chances, slim and none. What needs to happen here is that this fiasco needs to be delayed until the appropriate people including physicians, businessmen, insurance industry people, minority group representation, middle class representation and others can meet behind closed doors for as long as it takes to fix this.

Good Comments on a Somewhat Hidden Problem of Obamacare

Stockdale: A lot to worry about with Act

Covered California Health Insurance Exchange Update

Director pitches benefits of new health exchange | california, plans, exchange - News - The Orange County Register

CA Health Care Reform Update

The new Covered California Health Insurance Exchange is on target to begin enrollment on October 1, 2013.  Insurance plans will be offered through the state exchange and outside of the exchange.  The primary reason for buying through the exchage is that income relative premium subsidies may be available to those who qualify.  Following are some important points to note about the changes forthcoming relative to healthcare reform:

• Those who currently possess a health plan from an insurance company participating in the exchage will have to change to a health care reform compatible plan by 12/31/2013 or be moved to the closest available plan by the insurance company.  In Orange County, the companies participating in the exchange include Anthem Blue Cross, Blue Shield, Health Net and Kaiser.  For other counties, you can visit the Covered California website to determine the participants.  The exception to this is that if you have a "grandfathered" plan issued prior to 3/23/2010, you will have to do nothing.
• Open enrollment for 2014 individual health plans runs from 10/1/2013 through 3/31/2014.  You will not be able to enroll in a new plan after 3/31/2014.
• Covered  California will be hiring enrollers and facilitators as well as utilizing independent brokers to assist in enrollment.  However, enrollers and facilitators are non-licensed personnel and cannot assist in comparing plans and helping you decide which plan is best for you and your family.  Only licensed insurance brokers and personnel can assist in comparing plans.
• There will be an analysis tool available for us to use in helping you determine whether you are available for a subsidy and to compare available health plans.

Brokers must beciome certified to represent the Covered California Exchange just as we are
certified and appointed to represent individual insurance companies.  This certification is set to
begin in early September.  I will be certifying myself and additional personnel to assist you in procuring the best plan value for you and your family.  We should be able to start the analysis process around October 1.  We will be reaching out to our clients, however it will be very helpful if you can contact us after mid-September to set up either a telephone or personal appointment to review options.

 

Small Group Health Plans and Covered California

 
We do not anticipate major change in the small group marketplace during the end of 2013 and
the first half of 2014.  Covered California will offer small group plans, however the only companies participating in L.A. and Orange Counties are Blue Shield, Health Net and Kaiser
Permanente.  Most companies are allowing an early renewal 12//1/2013 at current December rates to lock in the rate through 11/30/2014.  Please contact us for more information on the early renewal program.  We do not foresee much rate instability in the small group market for year 2014.

 

Summary

 
There will be much advertising and propaganda directed at consumers through the end of the
year promoting the Covered CA Health Insurance Exchange.  This source may work well for some but not so well for others.  I have taken the philosophy of trying to assist and maintain my current client base as opposed to hiring telephone solicitors to pursue new business.  I hope to work as your partner in assisting you in maneuvering through this new Health Insurance Maze and obtaining the most value and cost effectiveness in your health insurance policy.  Once we have accomplished this, I will appreciate your serving as my sales force and referring me to your friends, neighbors and business associates who need assistance. Please call or email me if you have questions.

 

Article on Obamacare - The Orange County Register

Obamacare will see you now | insurance, people, health - News - The Orange County Register

A new Obamacare flaw: Many could face a precipitous ‘subsidy cliff’ as income approaches certain limits | AEIdeas

A new Obamacare flaw: Many could face a precipitous ‘subsidy cliff’ as income approaches certain limits | AEIdeas