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5 Big Effects of Obamacare
5 Big Effects of Obamacare
5 Big Effects of Obamacare
5 Big Effects of Obamacare
5 Big Effects of Obamacare
5 Big Effects of Obamacare
5 Big Effects of Obamacare
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5 Big Effects of Obamacare

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For the past few years, features and benefits from the Affordable Care Act have been methodically rolled out and implemented, changing the United States Healthcare system as we know it. Along with …

For the past few years, features and benefits from the Affordable Care Act have been methodically rolled out and implemented, changing the United States Healthcare system as we know it. Along with these changes undoubtedly came opinions and emotions ranging from extreme disgust to extreme joy regarding each and every facet of the new law.

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  • 1. EFFECTS OF OBAMACARE MBAA © 2014 Page 1 " 5 Big Effects of Obamacare THE LATEST ON THE ACA
  • 2. EFFECTS OF OBAMACARE MBAA © 2014 For the past few years, features and benefits from the Affordable Care Act have been methodically rolled out and implemented, changing the United States Healthcare system as we know it. Along with these changes undoubtedly came opinions and emotions ranging from extreme disgust to extreme joy regarding each and every facet of the new law. " One of the most notable changes came in 2010 when the Affordable Care Act began affording young adults the opportunity to stay on their parents’ insurance until their 26th birthday. " In 2011, many options to aid seniors in getting the care they need were implemented. Then, in what many perceive to be the mother of all changes came along in 2013 when open enrollment began, and the majority of the American public was given a deadline to enroll in a healthcare plan. " At first it appeared as though the open enrollment period was a bust, many people were up in arms about the difficulty in signing up for plans, the cost associated with the plans and the overall unfamiliarity many felt with this new system. " Some consumers publicly stated that they were planning to opt for fines rather than the unaffordable coverage they found to be among their healthcare choices. " Now that the proverbial dust is starting to settle, though, a clearer picture is emerging, showing the actual, real-life effects of this big shift and the way Americans utilize and benefit from the new healthcare laws. Page 2 At first it appeared as though the open enrollment period was a bust, many people were up in arms about the difficulty in signing up for plans, the cost associated with the plans and the overall unfamiliarity many felt with this new system. “
  • 3. EFFECTS OF OBAMACARE MBAA © 2014 " Individuals with incomes less than four times the federal poverty level qualify for subsidies to help pay for their insurance coverage. As it stands, almost 90 percent of those who signed up for a plan on the federal exchange qualified for assistance. " Nearly 70 percent of those who qualify for assistance by way of subsidies are paying less than $100 per month. In fact, the average full-priced premium per month is $346, and the average premium for those qualifying for subsidies is $82. " While this staggering statistic is a good indicator that healthcare was made more affordable for many (made obvious by the large number of low-income enrollees), the cost of these subsidies is no laughing matter. " The federal government will likely spend upwards of $11 billion on these benefits, and this includes those who enrolled at the last minute and will only receive assistance for a portion of the year. " These numbers also do not include about 33 percent of new enrollees whose exchanges are run by their individual states. According to federal officials, data is unavailable for those states. It is reported that if the states that run their own exchanges have comparable numbers, subsidies could wind up costing the federal government a whopping $16.5 billion. " Furthermore, the Congressional Budget Office estimates that the cost of subsidies per year will top $95 billion by 2024. This blow, however, was cushioned with the confidence that additional revenue and cuts in other areas of healthcare will likely balance this number out. As previously mentioned, millions of young adults are benefitting from the provision in the Affordable Care Act that allows them to stay on their parents’ insurance plan until Page 3 Effect on Subsidies Effect on Young Adults
  • 4. EFFECTS OF OBAMACARE MBAA © 2014 their 26th birthday. The Center for Disease Control reported an estimated drop in uninsured young people of one-sixth its original number, which equates to 1.6 million more young people becoming insured. This is the largest drop on record since the Center for Disease C o n t r o l s t a r t e d gathering such data 17 years ago. " Another win for this category is that 6.2 percent more young adults reported being in excellent physical health and 4 percent more reported being in excellent mental health t h a n i n p r e v i o u s studies. The same group also saw a decline in yearly out- of-pocket expenses. " What’s more, strong opponents of Obamacare, including Mitt Romney and John Boehner, would like to see Obamacare repealed, but would like to keep this part of the law in effect. So, no matter what happens in the future with Obamacare, it has likely set a positive trend considering the healthcare of young adults. " States that elected to expand Medicaid in order to provide relief to those who fall in the “coverage gap” (individuals with incomes too low to qualify for Obamacare subsidies and too high to qualify for Medicaid) are seeing surges in Medicaid enrollment. " Enrollment numbers were up by 15 percent, with six million new enrollees, in the states that expanded Medicaid. Included are the states of Oregon, West Virginia and Nevada, which saw enormous enrollment increases of 40 percent each. " While this surge was to be expected, states that did not expand Medicaid are also seeing a rise in enrollment. With all the coverage of Medicaid, some people are just now realizing they qualify – with or without expansion. Some officials cited this Page 4 Effect on Medicaid Enrollment
  • 5. EFFECTS OF OBAMACARE MBAA © 2014 “woodwork effect” as a large reason for rejecting the expansion of Medicaid in the first place, so this is definitely an increased and unexpected cost. South Carolina is one state that saw a large increase – 14 percent to be exact. It was reported that this was not due to the woodwork effect but more so because officials were actually seeking out individuals who were previously eligible but not enrolled. Although the employer mandate has not gone into effect yet, some companies have already reported putting a stop to hiring or even downsizing and cutting hours to stay under the radar and avoid having to provide insurance to all full time employees when the time comes. " When (and if) the employer mandate goes into effect, companies with 50 or more workers must offer insurance to all full time employees or face a penalty. Even proponents of the Affordable Care Act reportedly want this whole mandate to disappear, and hope that the delays in implementation are a sign of its fate. " If the employer mandate is implemented, some employers who have no way around it have already said they will opt for the penalties because they are less expensive than providing insurance for everyone. " They have also said that what should be a simple act of reporting employee status and numbers to the government is too cumbersome with the Affordable Care Act and that it will be too costly and will drain more resources than they are willing or able to sacrifice. 
 Page 5 Effect on Businesses When (and if) the employer mandate goes into effect, companies with 50 or more workers must offer insurance to all full time employees or face a penalty. Even proponents of the Affordable Care Act reportedly want this whole mandate to disappear, and hope that the delays in implementation are a sign of its fate. “
  • 6. EFFECTS OF OBAMACARE MBAA © 2014 " Contrary to many of its proponents’ predictions, insurance companies are beginning to move toward, rather than away from, offering plans in the exchange. With a sort of “watch-and-wait” year under their belt, insurers may be starting to see a chance to profit, allowing them to feel more comfortable approaching the market. Data from 10 states has been collected and shows that 27 new insurance companies will be offering plans under the Affordable Care Act next year. There has been no word of current insurers pulling out of the exchange, so each new provider will be adding positively to the number of options rather than replacing those that are pulling out. Previous reports gave daunting forecasts about insurance companies’ impending refusal to offer plans or backing out of the exchange, creating a lack of competition in the exchanges. So, the great news for the Affordable Care Act and consumers is that insurance companies are beginning to file in. Experts say insurers really don’t have much of a choice and would be unwise to opt out of participating when more than 8 million people in 2014 signed up. Good news for consumers is that more insurers mean more competition, and some companies are already proposing rate decreases. According to the numbers that are currently available for 2015 premiums, it seems as if previous doomsday predictions about rising premiums could have been dramatized. " Some insurance companies, however, have reported that they'll have larger increases in the premiums they offer, but the numbers are not definitive as of yet. " Page 6 Effect on Insurers
  • 7. EFFECTS OF OBAMACARE MBAA © 2014 Overall, the effects of Obamacare are still on a proverbial seesaw, and there are still many kinks to be ironed out. It does appear as if it is fulfilling its purpose of making healthcare more accessible to the general population. Is it sustainable, especially considering the high cost subsidies and volatile premium prices? As made obvious by some of the surprise results we’ve seen thus far, only time will tell. " Page 7 Call 855-203-7058 or Click the Button to Visit BillAdvocates.com Looking to Dispute Medical Bills?

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