Monthly Archives: May 2013

Does Washington Really Understand Who Will Have Insurance and Who Won’t?

The latest health care story from the Obama Administration is that Americans who already have health insurance won’t need to worry about glitches and bumps in the PPACA.

The problem with this sentiment expressed in Washington is that people will take them for their word. They simply won’t worry about having health insurance or that anything will be changing with their current coverage, which is far from the truth.

The first group who will more than likely see their rates increase are 20-40 year old single males. When rates become “unisex” they will see their current $70 premiums going close to $300 a month or greater. Want to know their overwhelming response to the upcoming increase? They believe they won’t get sick and respond by saying, “I’ll just pay the penalty (tax). Who needs to see a health care professional on a yearly basis anyway?”

The second group who will fall through the cracks are the small business owners.  The regulations will become so cumbersome they will give up and drop their group coverage and let employees figure it out on their own. They don’t have the manpower to support the complexity of what is about to happen.

The PPACA was created for an uninsured population who STILL may or may not purchase. What is most concerning is the current insured population who will either lose insurance benefits or electively drop out.

We are about to change the system and how we deliver health insurance. These are changes we have not seen since Medicare was created 50 years ago. Does Washington really understand all the target audiences and how they will respond?