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Health Insurance Costs 2013 Question & Answers

2014 June 29
by Sarah Fields

George asks…

Why don’t people realize that the Affordable Care Act is more than just a mandate to buy insurance?

It also stops unfair practices on the part of the insurance companies, allows students to stay on their parents’ plans longer, sets up exchanges to obtain health insurance, provides subsidies for those who can’t afford it, and expands Medicaid to include more people.

It seems like no one even talks about these things, and it’s all about the mandate.

Sarah Fields answers:

The Mandate is how they plan to fund it. Nothing else is possible without the mandate. Since this is the central pillar of Obamacare everything depends on it. It penalizes non-compliance and forces everyone to participate. If you believe that this strikes at the heart of liberty then you are likely against the whole bill because the mandate infringes on your personal rights. Those in the other camp see the mandate as a way to spread the cost across those who can pay so that those who cannot pay are paid for.

You are right…there are some good things inside this 2000 page monstrosity, but you must measure something on the whole of its contents. There are clearly problems too. The vote will come down to Anthony Kennedy…as it always seems to.

Having a country that does it all for their citizens…it sounds great, but the more they do for us, the more government dictates to our lives. Greece is the horror story of a country with out of control social spending. Not all Social Democracies are on the brink. Austria is one of those European Social Democracies that is on decent footing. But to afford their social programs, insurance and government pension the tax rate is 34% after $11,000 and 50% after $60,000. And employers pay a tax of 21.7% to help fund Austrian Social Security. Employees pay 18% for a total of 40%. That makes our combined social security taxes look small. Even with these high tax rates they are struggling to pay for programs, so in 2013 Austria will add a 50% capital gains tax.

Lets not fool ourselves, we may want federal government more involved in our welfare or we may not, but lets all agree from the example of other countries…letting government do all this for us is extremely expensive. Do we want to add to the burden of government, right now, when spending is out of control and deficit spending is the worst since World War 2?

James asks…

Can you give me examples of how Obama care will drive up the cost of health insurance for employers.?

Im not totaly clear how and why exactly obama care is going to hike the cost of insuring employees. And are employers the only ones being effected by this new law mandating them buy health insurance for the federal goverment?

Sarah Fields answers:

Here is an example:

Let’s say a company make a 6″ screwdriver. It costs the company 97cents in labor, materials, taxes, overhead, etc to produce that Screwdriver.

They sell the screwdriver for $1.00. That gives them a 3% profit margin.

3% is a Fair Profit for a person or company in my opinion.

Now, let’s say the Government comes along and says, “That screwdriver MUST be 8″ long!”

The company now has to increase the amount of steel used in its screwdriver by 25%. The cost of steel is 50% of their total costs. That equates to a 12% INCREASE in the cost of a screw Driver.

They must now increase the Price of the screwdriver to maintain that FAIR 3% profit margin.

The government does not pay for the increase in cost, even if they did, it would still be you and I that pay for it through increased taxation.

You can NOT force Health Insurance to increase Costs by forcing them to Cover Pre-existing conditions, free birth control, etc, etc that the Affordable Healthcare Act requires, and NOT expect them to increase their Rates to maintain the 3-6% Profit Margins that are common in the Health Insurance Industries.

It is common sense. If people put aside the Emotional part of it, they can see that.

I do not know a single person that feels that they are somehow paying Less today for Health Insurance than they did before this law came about.

I do KNOW for a fact that the companies me and my wife work for (she’s an accountant and deals with it more) have both increased our co-pays and de-ductibles, and reduced our coverages…mine even did away with our $4000 accounts that we could use to pay for our portion of costs due to increases in the Cost to them of our policies.

There is so much in there that you do not know about.

Did you know that in October of this year, Seniors were supposed to get their “Medicare Election Forms” in the mail. They do this every year….they pick what Medicare services they want in the next year.

Well, the NEW forms were about to be sent out, but they realized in the DHHS that the forms had lost MANY of the most popular programs that Seniors LOVE for 2013 because of Obamacare.

They knew that if they were sent out Seniors would NOTICE that they had lost so many of their options, and they would be getting them only ONE MONTH before the election.

Guess what they did? They threw away all those NEW Forms, sent out the old ones and “Stole” $8,000,000,000,000 (8 Billion) that was slotted for a Women’s and Infants Children’s Program and TRANSFERRED it to cover the cost of the Usual Choices for the Seniors for 2013.

Just so that they would not see that the statement “If you like your current coverage, it will NOT Change” was a bold faced lie.

That is the kind of junk our government does to us.

It sickens me, no matter which side does it….and they both do.

Paul asks…

Why is the health insurance bill, if signed not going to be in effect until 2013?

During Obama’s speech, he talked of people that died because of lack of insurance, or at the very least suffered greatly. So why does it take almost 4 years before this bill goes into effect? Plus why the rush right now to get the bill signed?

Sarah Fields answers:

They’ll say that it’s because it takes time to work plans like this out and put them into effect. The truth is that everything this administration does revolves around election cycles. The bulk of the money from the stimulus bill that *had* to be passed *now* isn’t even slated to be spent until 2010. This will give them a comfortable nest egg to use to artificially boost the economy so they can claim victory over the recession during the mid-term elections. Look at the 10 year budget plan. It shows the budget increasing every year until 2012, then it drops considerably for that one year and shoots back up in 2013. That’s pretty self-explanatory. They honestly don’t know whether this health care mess will be a train wreck or whether it will work. I think even they know deep down that the costs will be much higher than they’ve stated and that it won’t be deficit neutral. They can’t have something that huge show signs of failure before the 2012 elections, so it’s safer to have it go into effect after the elections. That way they can hold it up on the campaign trail as one of the wonderful things they’ve done for us.

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