PPACA is Driving-Up Costs on All Health Care Plans Including Medicare
There is nothing in the Affordable Care Act (ACA) that is affordable. In fact, there is nothing in health care reform that will lower claims (utilization) except changing behaviors and taking better care of ourselves. Electronic medical records will help to reduce claims however, everything else in the 2500 pages will increase costs for carriers and consumers. We are now starting to see the results of this legislation.
Another area that will be hard hit is our current Medicare system. Nearly have of the finances needed to pay for Obamacare is coming from Medicare in the way of provider and physician reimbursements; the effects are crippling and it is just beginning. The more people you add (now up to 400% of the poverty line) to an already over utilized and under paid network of doctors and hospitals, the slower the delivery system becomes. Below, the National Association of Health Underwriters (consumer advocates for good health reform legislation), shares from a recent report in the Wall Street Journal concerning the broad reaches of reform and it’s effects on the Medicare system; I guess you can’t really keep your doctor if you want after all!
The Wall Street Journal (11/18, Beck, Subscription Publication) reports that United Health Group, the largest provider of privately managed Medicare Advantage plans in the US, has removed thousands of doctors from its networks in at least 10 states during the last few weeks. The company says that it is facing significant financial pressure from the Federal government and expects cuts in FY14 due to the ACA.
