Let's start with the definition of two other important government funded programs called Medicare and Medicaid. These terms are important to understand to fully understand Obamacare.
Medicare- A government administered insurance program that guarantees health insurance to Americans 65 years and older regardless of income or medical history. Medicare covers about 50 million people in the USA and consists of four main parts. Part A covers inpatient hospital visits, part B helps pay for outpatient visits, part C allows one to receive Medicare benefits through a private insurance plans, and part D subsidizes the cost of prescription drugs. It is important to note that medicare part A is covered for free if one has paid medicare taxes for at least 10 years, otherwise a monthly premium is paid at about $441 for similar benefits. The baseline costs for Part B are about $105 monthly for premium costs which increases based on income, and a $147 annual deductible. Part B coverage only covers 80% of medical fees. Part C depends on which package is selected. Part D also changes based on plan but similar to Part B there is a deductible and a 20% co-pay.
Medicaid- A government administered program for citizens which serves at the primary source of health insurance for people with low income. About 58 million Americans rely on Medicaid for insurance. Each state has its own eligibility rules to qualify for medicaid but ultimately the rule has to do with how an income compares to the federal income poverty line. Medicaid covers a broad array of services from inpatient hospital care to outpatient doctor visits. Many other options like coverage for prescription drugs and dental care are optional and cost money. Most medicaid programs are free or low paid, and are funded by the government through tax payers money.
Both Medicare and Medicaid are controlled by a federal agency called the Centers for Medicare and Medicaid Services (CMS). About $716 billion will be cut from Medicare in the next ten years to help fund ObamaCare and expand Medicaid
Patient Protection & Affordable Care Act
The official name for Obamacare is the Patient Protection & Affordable Care Act. The Affordable Care Act was signed by President Obama in 2010 and is the largest expansion to healthcare since the addition of Medicare and Medicaid. The main idea of the Affordable Care Act is to make sure that every citizen in the United States has some form of health insurance. The Affordable Care Act will offer different/cheaper packages than private insurance, through a Health Insurance Marketplace, that an uninsured citizen can purchase. If an uninsured person opts not to buy a health insurance package they will be penalized through a penalty income tax. Similarly, starting in 2014 the Affordable Care Act creates a national Medicaid minimum eligibility level of 133% of the federal poverty level (About $30,000 for a family of four in 2011). Which is a much larger expansion for medicaid compare to what it is now.
The Affordable Care Act does NOT replace medicare, medicaid, or private insurances. Instead it allows more individuals to have a more cost effective alternative option than private insurance coverage. The Affordable Care Act also offers other provisions and incentives to increase the quality, coverage, and cost of healthcare throughout America. For example Obamacare prevents private health insurance from charging different premiums based on age, race, or pre-existing conditions.
To learn even more about Obamacare read more at this link: http://www.obamacarefacts.com
I will be writing more about certain regulations regarding ObamaCare in the future as well.
What does Obamacare mean for Doctors?
One of the biggest concerns of universal healthcare comes from doctors. I have talked to many doctors recently and they are all concerned. Why?
1. Since the funding for Medicare is being slashed critically, the payment by the government for patients over 65 will be much less. Many doctors will attempt to limit their Medicare patients or not accept them at all.
2. Many regulations and incentives are being imposed by the government, which will allow private practice doctors to earn back money from the government if they are being efficient with their healthcare.
3. America is already in a shortage for doctors, with Obamacare the shortage will increase. Many doctors have planned to retire early due to the new healthcare laws. Similarly many students are opting not to go into medicine since the pay will be reduced.
4. More doctors are moving out of private practice for a fixed salary hospital job. Working for a hospital allows for more secure payment rather than having to deal with the government for payments.
5. There will not be the traditional doctor-patient relationship. Doctors will be forced to focus on quantity over quality and try and see as many patients as possible to make a similar pre-Obamacare salary.
Ultimately ObamaCare will help millions of people in America access affordable healthcare. On the other hand, it will lower the total amount of money doctor's made. There must be an approval agreement between patients and doctors if ObamaCare is to work effectively in the United States. It must be affordable for patients, and feasible for doctors. I am interested to see what the Government's next steps will be.
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