Understanding Obamacare

Fabulous & Frugal
by Brandi Savitt - April 12, 2012

Preparing for the Changing Healthcare System

Last week I had the pleasure of speaking with patient advocate, PhD and former New York State Lieutenant Governor Besty McCaughey about the release of her new eBook, "Decoding the Obama Health Law: What You Need To Know." McCaughey is well known for her often controversial push back on healthcare reform and the current Patient Protection & Affordable Healthcare Act (Obamacare). A Republican, Dr. McCaughey deciphered the whopping 2,572 pages of the new Healthcare Act in an attempt to provide Americans with a bi-partisan summary to help us all prepare for the changes in our healthcare system that will likely go into full effect come 2013-14. And while her book does not consistently achieve a bi-partisan tone, McCaughey's passion about finding a solution that will offer all Americans affordable healthcare is undeniable. The problem: she doesn't believe Obamacare is that solution...

Take a Peek Inside the Book - Obamacare's Winners & Losers

*Excerpt from "Decoding the Obama Health Law: What You Need To Know" The Winners

  • Low-income, childless adults who did not qualify Medicaid but will, as of 2014.

  • Households earning up to $92,200 for a family of four who pay for their own insurance. As of 2014, they will get a subsidy funded by taxpayers.

  • Young adults are eligible to stay on their parents' health plan until age 26.

  • People in their fifties who would pay more for health insurance if younger adults were permitted to pay less. New pricing rules force younger customers to subsidize middle-aged customers.

  • Insurance companies are winners and losers. They are guaranteed customers. The law forces you to buy their

    product. But, on February 29, 2012 Secretary of Health and Human Services Kathleen Sebelius told Congress the private insurance market is in a "death spiral." Blame Obamacare's costly regulations.

  • Chronically ill patients will benefit from rules barring insurers from putting lifetime caps on your care.

  • Newcomers to the U.S. - The law expands programs to serve people of diverse languages and cultures, regardless of immigration status.

  • Racial and ethnic minorities will benefit from federally funded programs to train a diverse healthcare workforce.

  • Government employees - Obamacare is causing the federal government to add workers at a rapid pace. The Department of Health and Human Services increased spending 15% in 2009 and 2010, staffing up to write more regulations pertaining to the new law. Federal actuaries predict that government spending on healthcare administration - bureaucrats and regulations - will soar from $29 billion in 2008 to more than $71 billion in 2020.

The Losers

  • Hospital employees - Hospitals will face severe budgetary pressures, warns Chief Actuary Richard Foster. He predicts 15% of hospitals will be forced into the red.

  • Hospital patients will wait longer when cutbacks reduce the supply of diagnostic equipment and spread nurses

    thinner.

  • Taxpayers who earn more than $200,000 or $250,000 per couple are hit with higher Medicare Part A payroll taxes.

  • Anyone planning on selling a home at a profit will likely be subject to a new 3.8% "unearned income tax" if the profit exceeds $200,000.

  • People with generous health plans, which are common to many unions, will risk losing them in 2018, when a 40% "Cadillac Tax" on insurers offering these plans begins.

  • Doctors expect lower pay, more paperwork, and more government interference in how they treat their patients.

  • Seniors pay for more than half the Obama health law through cuts in Medicare and Medicare Advantage programs. They will get less care than if the law hadn't passed. Babyboomers will enter Medicare in record numbers over the next decade. They will also get less care than if the law had not passed.

  • People who want to keep their medical records private will find it hard to do. Privacy advocates claim the law will compel Americans to "share with millions of strangers who are not physicians confidential, private and personal medical history information they do not wish to share." Women make the health decisions in most families. But the law gives the Secretary of Health and Human Services the power to decide what your health plan covers, how much it can cost, and even what your doctor can do.

Why Read the Book?

Republican or Democrat, it is our job to inform ourselves as much as possible (from all points of view). In today's political climate, do I really need to tell you that you can't believe what politicians and the media say without doing your own deeper dive? So, as the Supreme Court now deliberates over whether the government has the right to mandate that people must have health insurance, the time is now to educate yourself about the pros and cons of our pending new healthcare system, and how it may affect you and your family's future well being. McCaughey's book does answer many questions, but if you're like me, it will also get you fired up and leave you with many more. We encourage you to get informed and speak out. There is no price tag on good health, and the future of our healthcare system is too important to ignore! *Betsy McCaughey's eBook is available now for download at Amazon.

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