In the last few months we’ve seen a lot of Health Care Reform rules and regulations being introduced by the Health and Human Services Department. Every time that happens, the media gets hold of it and all kinds of articles are written in the Wall Street Journal, the New York Times, and the TV network news programs talk about it. All the analysts start talking about the pros and cons, and what it means to businesses as well as individuals.
The problem with this is, many times one writer looked at the regulation, and wrote a piece about it. Then other writers start using pieces from that first article and rewriting parts to fit their post. By the time the information gets widely distributed, the actual regulations and also rules get twisted along with distorted, and actually shows up in the press sometimes just doesn’t truly represent the reality of what the regulations say.
There’s a lot of misunderstanding about what is going on with ObamaCare, and one of the things that I’ve noticed in discussions with clients, is that there’s an underlying set of myths that people have picked up about health care reform that just aren’t true. But because of all they’ve heard in the mass media, people believe these myths are actually true.
Today we’re going to talk about three myths I hear most commonly. Not everybody believes these misconceptions, but enough do, and others are unsure what to think, so it warrants dispelling these myths now.
The first one is that health care reform only affects uninsured people. The second one is that Medicare benefits and also the Medicare program isn’t going to be affected by medical care reform. And then the last you are that healthcare reform is going to reduce the costs of healthcare.
Health Care Change Only Affects Uninsured
Let’s look at the first myth about health care change only affecting uninsured individuals. In a lot of the conversations I have with clients, there are several expressions they use: “I already have coverage, so I won’t be affected by ObamaCare, ” or “I’ll just keep my grandfathered health insurance plan, ” as well as the last 1 – and this one I can give them a little bit of leeway, because part of what they’re saying is true — is “I have group health insurance, therefore i won’t be impacted by health care reform. ”
Well, the reality is which health care change is actually going to affect everybody. Starting in 2014, we will have a whole new set of health plans, and those plans have very rich benefits with lots of extra features that the existing plans today don’t offer. So these new plans are going to be higher cost.
Medical care Reform’s Effect On People With Health Insurance
People that currently have health insurance will be transitioned into these brand new plans sometime in 2014. So the insured will be directly afflicted with this because the health programs they have today are going away, and they will be mapped into a new ObamaCare plan within 2014.
Healthcare Reform Impact on The Uninsured
The uninsured have an additional issue in that if they don’t obtain health insurance inside 2014, they face a mandate penalty. Some of the healthy uninsured are going to look at that charges and state, “Well, the penalty is actually 1% of my adjusted gross income; We make $50, 000, so I’ll pay a $500 penalty or $1, 000 for health insurance. In that case I’ll just take the actual penalty. inch But either way, they will be directly affected by medical reform. Through the mandate this affects the particular insured as well as the uninsured.