By: Mayor Bernard Featherman
The healthcare Affordable Care Act, better known as Obamacare, is still a mystery to most Americans. Even many well-informed people do not know what it requires and what it offers, except for the mandate to have health insurance coverage. Attorneys on both sides of the issue recently argued in front of the Supreme Court about the constitutionality of the mandate.
Some of the Act’s requirements have already been put in place, such as coverage for unmarried children up to the age of 26 being included in the health insurance policy of the parents. Also, insurance companies can no longer turn down anyone for coverage because of pre-existing health problems.
Almost 40 million additional Americans will be covered under this new healthcare program. Insurance subsidies will be provided for low income persons, the unemployed or underemployed, who previously lacked coverage. Also, preventive care is covered entirely, without any co-payments.
Before the new Affordable Care Act, many employees were provided health insurance through the organizations they worked for. Most employees had to pay some or all of the cost of their coverage, and millions of self-employed and other Americans had to buy their own health insurance. Also, the federal government deducts taxes from all wage earners to support Medicare payments, which all citizens can eventually receive at age 65.
For those without health coverage, states and the federal government have provided help through unemployment checks, food stamps and grants to communities. Almost all hospitals have been required to provide emergency services to indigents and immigrants, legal or otherwise, regardless of ability to pay, since 1986, under the Emergency Medical Treatment and Active Labor Act, signed by President Ronald Reagan.
The new law has been very controversial, especially because it forces people to buy health insurance or face a fine for not doing so. Our government will be compelling people to enter into a contract to buy health insurance, whether they want to or not. Most Americans are provided with health insurance coverage by private insurance companies today.
In order to pay for Obamacare, and to keep Medicare solvent, Medicare benefits will be reduced in the future, most likely by raising the age of eligibility, taxing Medicare Supplement plans or limiting eligibility for high income citizens. Starting in 2013, a 3.8 percent increase will be added to Medicare payroll taxes.
Many people want to see the new healthcare law over-turned because of concerns that the law will increase their wait time to see their physician, because so many more people will have health care coverage, but the supply of health care workers is not likely to increase, since there is no financial support for health care training in the law. Other people fear that they could be moved to a different doctor or clinic, and not be able to stay with the doctor of their choice. Some smaller medical practices might go out of business due to added expenses.
Those who support the new law believe that we all pay for the poor to be treated, one way or another. When people without health coverage get sick, they often wait until their condition gets serious before seeking treatment, and then go to hospital emergency rooms, which are very expensive. If they had coverage, and saw a doctor sooner, the cost would be much lower.
When hospitals give free care, they still have to pay for their staff and supplies. To recover those costs, they charge higher fees to their paying customers, or their insurance companies.
Some legal experts believe the Supreme Court will change parts of the health law or even overturn it when its verdict is rendered this coming June. The Healthcare Law is over 1-1/2 years old now, and it is facing its first major constitutional challenge.
If it is upheld, a lot of administrative details will have to be developed. A win could help the president’s reelection chances, because it would show that his judgment on the constitutional issues was correct. But, if it is overturned, it could severely damage the president’s campaign.
It will be interesting to see what the Court decides.