Why Can’t The US Agree On Obamacare? Part 2: Advantages And Disadvantages
In Part 1 of this content, we discussed a number of facts regarding Obamacare such as the goal and intent of the ACA as well as the current public opinion. It goes without saying that the Affordable Care Act is an ongoing subject of controversy and political debate. So in order to understand why, it’s only that we discuss its advantages and disadvantages according to the Congressional Budget Office:
The ACA was designed to make healthcare insurance available to over 30 million Americans who cannot get insurance while reducing the overall cost of it – all plans must cover what the administration has defined as 10 essential healthcare benefits. The US Government will also pay the individual states to add people to Medicaid if they cannot afford healthcare insurance and when a family earns $31,000 per year or less (133% of the Federal poverty level).
Families of 4 who earn less than $94,000 annually and cannot qualify for Medicaid services will receive income tax credits – states must use the government’s healthcare insurance exchange or establish their own. Children with pre-existing conditions cannot be denied care coverage nor can the insurance companies terminate anyone for getting sick. The person can appeal an insurance company’s decision to deny them through external means. Additionally, younger adults up to age 26 can be included on their parent’s healthcare insurance.
Unless the healthcare insurance provider drops it, individuals can keep their existing plans – employers who currently offer their employees a tax-free benefit won’t have to change providers. For companies who employ fewer than 50 employees, Obamacare does not apply. The ACA requires larger companies to offer a healthcare insurance plan. However, they will receive tax credits to assist employees with the payment of their healthcare benefits. The credit increases to 50% by 2015.
Anywhere from 3 to 5 million individuals are going to lose their employer-sponsored healthcare benefits – for those businesses, it will be more cost-effective to cancel those plans and pay the tax penalties rather than paying for more costly coverage. Increased coverage premium rates will actually increase the overall cost of healthcare over the short term. Since many individuals will be receiving preventative healthcare, screening, and testing, it will further increase the costs.
Because certain insurance companies did not mean the 10 essential healthcare benefits (see above), many of the 30+ million individuals who were insured by them had their insurance plans cancelled – unfortunately, these individuals paid considerably higher premiums in order to replace their cancelled insurance plans.
Individuals who do not qualify for Medicaid and don’t purchase healthcare insurance will have to pay a tax of 1% of their income or $95, whichever is higher – it has been estimated that 4 million individuals are going to pay the tax rather than pay for healthcare insurance. The Congressional Budget Office estimates that this will cost these individuals a total of $54 billion as a result.
On a closing note, the USA Rx pharmacy discount card is available to any business, healthcare provider, individual, or other organization so that they can at least save money on their prescription medications. For more information, contact us at our toll-free phone number 888-277-3911, e-mail us at [email protected], or visit the USA Rx website.