In the previous couple of months we have seen numerous Well being Care Reform guidelines and rules being launched by the Well being and Human Providers Division. Each time that occurs, the media will get maintain of it and all types of articles are written within the Wall Road Journal, the New York Instances, and the TV community information packages speak about it. All of the analysts begin speaking in regards to the professionals and cons, and what it means to companies and people.The issue with that is, many occasions one author seemed on the regulation, and wrote a bit about it. Then different writers begin utilizing items from that first article and rewriting components to suit their article. By the point the data will get broadly distributed, the precise rules and guidelines get twisted and distorted, and what truly reveals up within the media typically simply would not actually symbolize the fact of what the rules say.There’s numerous misunderstanding about what’s going on with ObamaCare, and one of many issues that I’ve observed in discussions with shoppers, is that there is an underlying set of myths that individuals have picked up about well being care reform that simply aren’t true. However due to all they’ve heard within the media, folks consider these myths are literally true.At present we will speak about three myths I hear mostly. Not all people believes these myths, however sufficient do, and others are not sure what to consider, so it warrants dispelling these myths now.The primary one is that well being care reform solely impacts uninsured folks. The second is that Medicare advantages and the Medicare program is not going to be affected by well being care reform. After which the final one is that well being care reform goes to cut back the prices of healthcare.Well being Care Reform Solely Impacts UninsuredLet’s have a look at the primary fantasy about well being care reform solely affecting uninsured folks. In numerous the discussions I’ve with shoppers, there are a number of expressions they use: “I already have coverage, so I won’t be affected by ObamaCare,” or “I’ll just keep my grandfathered health insurance plan,” and the final one – and this one I may give them a bit of little bit of leeway, as a result of a part of what they’re saying is true — is “I have group health insurance, so I won’t be affected by health care reform.”Effectively, the fact is that well being care reform is definitely going to have an effect on all people. Beginning in 2014, we will have an entire new set of well being plans, and people plans have very wealthy advantages with a number of further options that the present plans as we speak do not provide. So these new plans are going to be greater value.Well being Care Reform’s Impact On Individuals With Well being InsurancePeople that at present have medical insurance are going to be transitioned into these new plans someday in 2014. So the insured will likely be immediately affected by this as a result of the well being plans they’ve as we speak are going away, and they are going to be mapped into a brand new ObamaCare plan in 2014.Well being Care Reform Impact On The UninsuredThe uninsured have an extra concern in that if they do not get medical insurance in 2014, they face a mandate penalty. A number of the wholesome uninsured are going to take a look at that penalty and say, “Well, the penalty is 1% of my adjusted gross income; I make $50,000, so I’ll pay a $500 penalty or $1,000 for health insurance. In that case I’ll just take the penalty.” However both means, they are going to be immediately affected by well being care reform. By the mandate it impacts the insured in addition to the uninsured.Well being Care Reform Impact On Individuals With Grandfathered Well being PlansPeople which have grandfathered medical insurance plans will not be going to be immediately affected by well being care reform. However due to the life cycle of their grandfathered well being plan, it’ll make these plans extra expensive as they uncover that there are plans accessible now that they will simply switch to which have a richer set of advantages that might be extra useful for any continual well being points they could have.For individuals who keep in these grandfathered plans, the pool of subscribers within the plan are going to begin to shrink, and as that occurs, the price of these grandfathered medical insurance plans will enhance even sooner than they’re now. Subsequently, folks in grandfathered well being plans will even be impacted by ObamaCare.Well being Care Reform Impact On Individuals With Group Well being InsuranceThe final one, the small group market, goes to be probably the most notably affected by well being care reform. Although the well being care reform rules predominantly have an effect on massive and medium-sized corporations, and corporations which have 50 or extra staff, smaller corporations will even be affected, regardless that they’re exempt from ObamaCare itself.What many surveys and polls are beginning to present is that a number of the companies which have 10 or fewer staff are going to look severely at their choice to drop medical insurance protection altogether, and not have it as an expense of the corporate. As a substitute, they may have their staff get medical insurance by means of the medical insurance exchanges.In actual fact, a number of the carriers are actually saying they anticipate that as much as 50% of small teams with 10 or fewer staff are going to drop their medical insurance plan someday between 2014 and 2016. That can have a really massive impact on all individuals who have group medical insurance, particularly in the event that they’re in a type of small corporations that drop medical insurance protection.It is not simply uninsured which can be going to be affected by well being care reform, all people goes to be impacted.Well being Care Reform Will Not Have an effect on MedicareThe subsequent fantasy was that well being care reform wouldn’t have an effect on Medicare. This one is form of humorous as a result of proper from the very get-go, probably the most notable cuts have been particularly concentrating on the Medicare program. Once you have a look at Medicare’s portion of the general federal, you’ll be able to see that in 1970, Medicare was 4% of the U.S. federal price range, and by 2011, it had grown to 16% of the federal price range.If we have a look at it during the last 10 years, from 2002 to 2012, Medicare is the quickest rising a part of the foremost entitlement packages within the federal authorities, and it is grown by nearly 70% throughout that time period.Due to how massive Medicare is and how briskly it is rising, it is one of many key packages that ObamaCare is attempting to get a deal with on, so it would not bankrupts the U.S. Medicare goes to be impacted, and in reality the preliminary cuts to Medicare have already been set at about $716 billion.Medicare Benefit Cuts And The EffectsOf that $716 billion reduce, the Medicare Benefit program will get reduce probably the most, and can see the majority of the results. What that is going to do is enhance the premiums folks pay for his or her Medicare Benefit plans, and cut back the advantages of these plans.Elevated Medicare Benefit CostsRight now, many individuals select Medicare Benefit plans as a result of they’ve zero premium. When given a alternative on Medicare plans, they view it as a straightforward alternative as a result of it is a free program for them, “Sure, I get Medicare benefits, I don’t pay anything for it; why not.” Now they are going to see Medicare premiums begin to climb, and go from zero to $70, $80, $90, $100. We have already seen that with a number of the Blue Cross Medicare Benefit plans this yr. It will worsen as we go ahead sooner or later.Decreased Medicare Benefit BenefitsIn order to attenuate the premium will increase, what many Medicare Benefit plans will do is enhance the copayments, enhance the deductibles, and alter the co-insurance charges. To be able to hold the premiums down, they’re going to simply push extra of the prices onto the Medicare Benefit recipients. Elevated premiums and decreased advantages are what we will see coming in Medicare Benefit plan.Fewer Medicare PhysiciansAnd then if that wasn’t dangerous sufficient, as Medicare medical doctors start receiving decrease and decrease reimbursements for Medicare Benefit folks, they are going to cease taking new Medicare Benefit recipients. We’ll see the pool of medical doctors to help folks in Medicare beginning to shrink as nicely, until modifications are remodeled the course of the subsequent 5 years. So Medicare goes to be affected, and it’ll be affected dramatically by well being care reform. All people’s form of on pins and needles, ready to see what is going on to occur there.Well being Care Reform Will Scale back Healthcare CostsThe final one, and possibly the most important fantasy about well being care reform, is all people pondering that ObamaCare will cut back healthcare prices. That is fully hogwash. Early on within the course of, after they have been attempting to provide you with the foundations and rules, the emphasis and one of many targets for reform was to cut back healthcare prices.However someplace alongside the road, the purpose truly shifted from value discount to regulation of the medical insurance trade. As soon as they made that transition, they pushed value reductions to the again burner. There are some small value discount elements in ObamaCare, however the true emphasis is on regulating medical insurance. The brand new plans, for instance, have a lot richer advantages than many plans as we speak: richer advantages means richer costs.Well being Care Reform Subsidies: Will They Make Plans Inexpensive?Lots of people hope, “The subsidies are going to make health insurance plans more affordable, won’t they?” Sure, in some circumstances the subsidies will assist to make the plans reasonably priced for folks. However for those who make $1 an excessive amount of, the reasonably priced plans are instantly going to turn into very costly and may value 1000’s of {dollars} extra over the course of a yr. Will a subsidy make it reasonably priced or not reasonably priced is actually topic to debate at this time limit. We’ll have to truly see what the charges appear to be for these plans.New Well being Care Reform Taxes Handed On To ConsumersThen there’s an entire ton of latest well being care reform taxes which were added into the system to assist pay for ObamaCare. Meaning all people who has a medical insurance plan, whether or not it is in a big group, a small group, or simply as a person, goes to be taxed as a way to pay for the price of reform. Well being care reform provides numerous taxes on well being care that insurance coverage corporations must gather and pay, however they’re simply going to move it proper by means of to us, the patron.Mandate Will not Scale back Uninsured Very MuchDuring the preliminary years of well being care reform, the mandate is definitely fairly weak. The mandate says that everybody should get medical insurance or pay a penalty (a tax). What that is going to do is make wholesome folks simply sit on the sidelines and anticipate the mandate to get to the purpose the place it lastly forces them to purchase medical insurance. Individuals with continual well being circumstances that could not get medical insurance beforehand, are all going to leap into healthcare initially of 2014.On the finish of that yr, the fee for the plans goes to go up in 2015. I can assure that that is going to occur, as a result of the younger wholesome persons are not going to be motivated to get into the plans. They will not see the good thing about becoming a member of an costly plan, whereas the chronically unwell persons are going to get into the plans and drive the prices up.Well being Care Reform’s Objective Is Simply A Matter Of SemanticsThe final portion of that is, one of many key issues – and it is humorous, I noticed it for the primary two years, 2010, and ’11 – one of many key issues that was listed within the documentation from the Obama administration was: Well being Care Reform would assist cut back the fee that we’d see sooner or later if we do nothing as we speak. That was emphasised time and again. That was how they introduced well being care value discount, that it might cut back the longer term prices. Not as we speak, however it might cut back what we’d pay sooner or later if we did nothing about it now.Effectively, that is nice, 10 years from now we will pay lower than we would have paid. And everyone knows how correct future projections normally are. Within the meantime, we’re all paying extra as we speak, and we will pay much more in 2014 and extra in 2015 and 2016. Individuals are going to be fairly upset about that.ConclusionThose three myths, that well being care reform is barely going to have an effect on the uninsured, that it will not have an effect on Medicare beneficiaries, and that ObamaCare goes to cut back healthcare prices, are simply that. They’re myths. There’s nothing to them.It is actually vital that you just take note of what’s occurring with well being care reform, as a result of there are extra modifications which can be coming as we undergo this yr, 2013. Figuring out the way to place your self so that you just’re in the best spot to have the ability to make the very best resolution initially of 2014 goes to be actually vital for everyone.