The Good and the Bad: A Review of the Healthcare Reform Author:    Posted under: Health InsuranceHealth Insurance questions answeredHealth Insurance Types


March 23, 2010, marked the signing of the Patient Protection & Affordable Health Care Act or HR 3590 (PPACA).  The President may not have claimed that it will solve all of the country’s problems regarding health care, but it will surely have started to take America in the right direction.  Apparently, not everyone agrees that this is the case.  In every legislation, there will always be people who will be opposing the propositions, and there will be those in favor.  But ultimately, it is in choosing the lesser evil- that which will benefit the greater number of American citizens.

What then, is in store for the American population given this law?
The Good

Better coverage for you. More American citizens will be covered and will have health insurance.  Over 95% of the population is expected to have health coverage by 2014.  Even more good news is that preventive care will be free for all citizens.

No limits for your policy. There will be no more imposed limits on the coverage for health insurance.  Annual or lifetime “caps” will be a thing of the past. There will likewise be no rejection of applications based on pre-existing conditions.  Federal regulated “exchanges” will allow for people to purchase their own insurance policies at competitive prices.

Closing the donut hole. The gap for Medicare Part D will finally be resolved.  The senior citizens will now be able to receive cheaper prescription drugs.  They would not need to meet any more deductibles upon purchasing their prescription medicines.

Coverage for adult dependents. Those living with their parents can still be insured under their parent’s policy until the age of 26.

Expansion of Medicaid coverage. Low income families that are 133% of the Federal Poverty Limit (FPL) are now eligible for Medicaid that will allow 16 million Americans to be insured.  There will even be subsidies for families who are over 400% of the FPL, unless they are otherwise covered by the insurance company from their employer.

It’s a welcome change. Increasing health care costs, employers who are having difficulty providing health care benefits to their employees, people getting sick and not getting any care… the list of health care needs and issues goes on and on.  Face it, change is needed, in whatever way we can actually start to find it.
The Bad

Change at a high price. The deficit will increase by $940 B and taxes for medical care will get bigger to provide for this reform plan.  The Medicaid budget will likewise be cut by $500 B to fund this program, thereby worrying the baby boomer population.  In addition, law will now mandate each individual to purchase their own health insurance, and all employers to provide employees with health insurance as well.  If they are unable to do so, they will be penalized.

Insurance companies unable to carry the cost. The no limit, no pre-existing conditions policy by the federal government will cause for insurance policies to increase their premiums.  This is because these companies would now have to shoulder high-risk, high-payout policies, which will also be the reason for the insurance companies to be out of business.  They simply cannot and will not be able to stay afloat given the costs.

More taxes. Reforms at this point mean bigger taxes for businesses and families with larger incomes.  Employers will also be penalized with bigger taxes if they do not provide insurance to their employees.

Critics claim that the risks to this reform bill outweigh the benefits.  It is said to be flawed in a sense that health care costs will only rise in the years to come, and will only cause the government to spend more.  It will then be detrimental to the already struggling economy of the country.

Although this may be the case, there are still some who believe that this may do Uncle Sam some good.  And it is, after all, the start of a little good, that makes its citizens believe in better things to come.

Sources:
http://www.businesspundit.com/the-pros-and-cons-of-the-new-health-care-reform-bill/
http://www.echristianfinance.com/2010/06/pros-and-cons-of-healthcare-reform/
http://www.helium.com/items/1782576-pros-and-cons-of-health-care-reform?page=2

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