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OK, I am confused, will Obama Care work or not?

by Dec 30, 2019

Well, the question is not will it work because everything works, just not always the way you want it to, or thought it would.

ACA, or Obama Care, has always been intended to produce what is called a single payor system that provides medical coverage for every American Citizen. So if you ask, “Does Medicare work?” because it is a model of a single payor system, the answer would be “Yes.” You really need to be asking other questions to get the answers you need.

How about “If Medicare has been working for so long, why wouldn’t it work for everybody?”

For many generations, Medicare had a slowly increasing enrollment, a human life span planned for about age 70, and a baby boomer population that was paying taxes to the system. That changed dramatically in the last three years.

Now Medicare has baby boomers by the tens of thousands who are entering the Medicare system, and they essentially stop paying into the system and start taking money out.

AND – we all live longer now, so people take more money out of the system and for a longer time. That longer time now includes age 100 more frequently.

If you have ever been unemployed, you know how fast your savings account disappears when your income stops. That is the dilemma Medicare faces right now. Lots of bills to pay and not enough income to pay them.

So how to fix that? How about we take all that money people pay to insurance companies and make them pay it to Medicare. We could call that the Affordable Care Act so people will like it because everybody likes affordable care. And if we do it to everybody, the young people will pay more than they use in services and it will all turn out peachy!

As Dr. Phil says, “How’s that workin’ for ya?”

The US has a birth rate below replacement (not enough taxpayers), and young people don’t want to participate (not enough enrollment) anymore now than they ever have. So revenue is not coming in fast enough to offset the rapidly increasing claims cost of the seniors.

Will Obama Care work? Of course, it will work, payment for services will have to go down, drug formularies will have to remove expensive drugs, physician PPO lists will have to be reduced, and (wait for it) premium cost will have to increase.

Apparently, I am late to the party with this notice because I see that all of that has already begun to happen.