Tuesday, September 24, 2013

Consequences of defunding Obamacare

Republicans are demanding that Obamacare be defunded.  Here is what would happen if Republicans get their way and Obamacare is abolished.  None of this is good for America families or American taxpayers.  None of this is good for bringing down the deficit.  But, this is what Republicans like Ted Cruz want to happen.

Uncompensated costs (costs to federal, state and local governments) for care provided to the uninsured who can not or will not pay their health care bills will increase between $230 and $370 billion between now and 2019.  American taxpayers will be on the hook for this increase which will be paid for through increased taxes and/or reductions in spending on other government-funded programs such as education, roads and bridges, and so on.
25 million MORE Americans will be without health insurance by 2023 than now further driving up uncompensated costs.

Americans will lose more than $3 billion per year in premium savings from the Obamacare 80/20 rule that requires that insurers spend at least 80% of premiums on medical care or quality improvements.  Insurers will get the keep this $3 billion for themselves.  Insurance premiums that have been held to about 4% per year will begin to grow at the rate of 10% or more.
7.8 million young adults would lose the right to stay on their parent’s plan until age 26.  Many of these adults will not be able to find affordable health insurance coverage.  If these young Americans get seriously ill, their parents or American taxpayers will have to pick up the bill for their health care.

Insurers once again will be allowed to place lifetime and annual caps on the amount of medical expenses they will cover.  As a result, many Americans will be at risk of running out of health insurance coverage and face huge health care bills if they get seriously ill.

Insurers will once again be allowed to drop a person’s coverage or significantly raise premiums if the person gets sick.
Insurers will once again be allowed to refuse coverage to people with pre-existing conditions.

There will no longer be a cap on out-of-pocket expenses which are now limited to $6,400 per year and $12,800 for families under Obamacare.  There will be no limit to the burden an insurer and/or companies providing insurance coverage for their workers can shift to employees and policy holders.  As a result, Americans with individual and company-provided health insurance will once again experience large increases in out-of-pocket costs.
Finally, Federal budget deficits will increase by over $100 billion between now and 2022 and by as much as $6.2 trillion over the next 75 years due to the loss in health care cost savings that would have been achieved through Obamacare.

Read more and see the sources here: 

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