Affordable Care Act – Newest Plan to Create Gov’t Dependency Will do Just That

gov hand outThe number of people in our country receiving redistributed tax money from tax paying citizens is growing at a record rate and the new healthcare law will dramatically grow that number.

It is very sad that:

Now comes the grandaddy (Gov. program)of them all; Subsidized health care (Subsidy calculator – I suggest you click this to how simple it is to qualify).  People making up to 4x the poverty level (up to $94,200 for a family of four)will now be eligible for a government handout of taxpayer money to help pay for their healthcare. This will successfully accomplish the current administration’s intended purpose of greatly expanding the number of Americans getting some form of government subsidy.  Please tell me why people that can afford satellite TV and smart phones should be getting taxpayer money to pay for medical insurance…..

In 2010, Americans were promised more medical benefits for less money (lower insurance premium).  Did anyone really believe this was possible?

Imagine if the government mandated that your auto insurance carrier had to cover oil changes, tire rotations and other general maintenance items at no cost to you at the point of service.  What do you think would happen to your auto insurance premiums?

What if they went further and told auto insurer’s that those with poor driving records MUST be offered full coverage at the same premium as everybody else?  Under what definition of “fair” would this fall?

This is comparable to what health insurer’s are faced with today.  Health insurance companies are mandated to offer people who “are huge claims waiting to happen” insurance for the same price as someone with no health conditions.

As of October 1st, individuals and families can begin going online and applying for health insurance effective for 1/1/14.  They can apply directly with the health insurance companies (most policies will be very similar as they are mandated to cover the same things) or they can apply via their state exchange if they would like to apply for a government subsidy.  The initial “open enrollment” period runs through March of next year.

The subsidy is based on what you think you will earn in the next year.  If your income varies, (you may be able to get away with low-balling your estimate and having taxpayer money subsidize part of your premium (this is not a joke).  You can sign up for the policy online and go through the income section. You will be told if you qualify for a government subsidy of your premium and how much the government will contribute toward your premium. Then you can choose from one of five different plans with a varying level of benefits and depending on the cost of the plan you would be responsible for whatever the difference was between the cost of the plan you choose and the amount the government was going to subsidize. Click on the link on my website to apply.

IF YOU CHOOSE NOT TO GET INSURANCE YOU ARE SUBJECT TO A PENALTY, BUT

THE ONLY WAY THE GOVERNMENT CAN COLLECT THE PENALTY IS TO TAKE IT FROM YOUR INCOME TAX REFUND.

Therefore, if you do not have a tax refund, there is no way for the IRS to collect the penalty for not having health insurance . This is no joke.

For many working people it will make sense to actually work fewer hours so that they could collect a greater subsidy toward their healthcare.  When did this become the American way?

I am happy for people who have had trouble getting health insurance (IL has always had a C.H.I.P insurance program for un-insurable people), and are looking forward to getting and paying for it.  There is a link on my website, Fortune Financial Group, where you can go online with Blue Cross Blue Shield and apply. On October 1st, you can use this same link to apply for medical insurance from the Exchange.

Unfortunately, the big problems with healthcare will not be fixed when this all kicks in (if it ever does).  Millions of people will still go uninsured ( they are better off paying the penalty) and the cost of care will sky-rocket (40-60% increase expected in Illinois) while the quality of care will plummet (ask your doctor).

Meanwhile, millions of people will grow accustomed to having the federal government (tax dollars) give them money every month (an amount that will grow massively over time on a national level) until the program explodes under the weight of its own cost.

In the meantime, I will keep you posted as this unfolds with updates and any strategies that may be worthwhile pursuing.

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2 Comments

  1. i read your articles with interest, Brad. the thing that interest about them are the assumptions that you make about how much people want to be dependent. I am always wondering where do you get the supporting facts for these assumptions.

    Yes, food stamps users are at an all time high because we financed two wars and the banking industry almost brought the economy down so that unemployment is at a very high rate. My guess is that those people on food stamps, for the most part, would rather have a job. Yes, there will always be fraud and misuse of benefits at both the top and bottom, but I submit that this does not represent the majority of people who are just trying to get by.

    I frankly cannot understand why people would want people to go without health insurance as we pay when they go to the emergency room. Actually I believe facts will support the assertion that we pay more when people wait until they are so ill that they have to go to the emergency room, because they are usually sicker than they would be if they got care earlier.

    What is the basis for the assertion that costs will skyrocket? My doctor is very concerned about not being able to make a living. Somehow the two don’t seem to make sense. Either costs will go up and doctors will continue to make plenty money or costs will go down and they will make just a living like the rest of us.

    That family making $94,000. per year, how much will their subsidy be? And to suggest that people will want to make less money to get the subsidy? Would you be willing to do that? Think of other people as just like yourself and I think you will have your answer.

    • Hi Edith, thanks for your reply.
      “My doctor is very concerned about not being able to make a living. Somehow the two don’t seem to make sense. Either costs will go up and doctors will continue to make plenty money or costs will go down and they will make just a living like the rest of us.”

      General practitioners will be asked to see many more people and they will be stuck with lower reimbursements from insurance companies for all the required preventative work they will be required to provide.
      The will discourage doctors from practicing (it’s not worth the effort) and discourage future people from entering the field. The amount of academic time, effort and money is simple not worth it going forward. Ask your doctor if he would choose this profession if he was starting today. The doctors I have talked to say “no way”.

      Many of the people that show up in ER’s are not in need of emergency help, they simply take advantage of the fact that they cannot be turned away. Many people show up consistently at the ER for basic medical attention. Again, ask ER doctors. I hear stories all the time from an ER Dr. that I play basketball with.

      My point of the blog was that millions of people will sign up for coverage and tax dollars will pay for part or all of the cost creating another Massive entitlement program which is exactly what it was intended to be all along. It will not lower the cost of insurance (the costs are going up, but using other people’s income via tax dollars to pay (subsidy) for it will make it seem cheaper for many). It also will not help the quality of care.

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