The End of Affordable Healthcare In the U.S.?

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The Affordable Care Act as part of the newly passed Healthcare Bill wasn’t meant to undercut employer health plans for most people in the U.S. for coverage.  Pushed through Congress by President Obama who passionately believes that everyone should have health insurance, the new law promised to save the people that have existing health care insurance money on their premiums.  Anyone that has seen their 2011 bill for health insurance will attest that health care premiums have increased between 20-40% for the same policy as they currently have.


What happened here? And how does the dramatic increase in health insurance affect businesses that may be looking to hire new employees?  It appears to be having a significant effect on companies that can hardly believe their increased costs for healthcare coverage next year.  With the current law mandating that companies carry health insurance for all of their employees, the insurance companies have the upper hand.


While insurance companies are lining their pockets with money and the healthcare bill is not in full effect until 2014, companies are trying to find ways to decrease the cost of insurance yet still pay for the majority of costs for their employees.  The insurance companies are charging more money knowing that by the time the bill is in full effect they will be forced to cover people that they normally wouldn’t, like individuals with pre-existing conditions and the uninsured.


The healthcare debate has been a forefront issue since Hillary Clinton, then First Lady, when she formulated a new healthcare plan.  Criticized for her involvement in the Administration’s government policy, her input was largely ignored and was never passed. Hillary was told by the Whitehouse staff to “bake more cookies” and stay out of Whitehouse business.  Of course, years later she was very close to being the Democratic nominee for President.


Companies, both small and large, have been struggling with how to deal with the current healthcare increase and still provide coverage for their employees.  They are looking at having their current employees pay more of the cost of coverage, reduce the quality of coverage or pay a $2000 fine per employee and not offer coverage, at all!  Concern over what an employee costs an employer certainly doesn’t encourage companies to hire additional employees.


Democratic Tennessee Governor, Paul Bredesen has gone on record saying that dropping health insurance coverage is about to become very attractive to many employers, both in the public and private sector, passing the costs onto the employees to find their own coverage.  Paying a penalty for each employee may become a cheaper option for companies already struggling to stay in business.  This would shift workers into a tax-payer subsidized insurance market that opens in 2014.


The Affordable Care Act is becoming anything, but affordable for both the employers and employees. Someone has to pay for the uninsured and the high-risk individuals that are currently unable to get health insurance benefits.  You can bet that it won’t be the health insurance companies carrying the freight rather it will be you and I with more people taking advantage of the federal taxpayer subsidy program. We will be are taxed heavily for this option.


Paul Keckly, Executive Director of the Deloitte Center of Health Solutions, a major accounting and consulting firm, says, “What we are hearing in our meetings is, ‘We don’t want to be the first one to drop benefits, but we would be a fast second!'” Keckely says he is hearing this a lot from his clients.  Erin Schields, a spokeswoman for the senators who wrote part of the law says she is comfortable that companies when they do the math, they will decide to keep offering insurance to their employees.


I’ve done my own math and based on our current health care coverage law, we are all going to be paying more for health insurance, both in increased premiums that companies will pass on more of the costs to the employees or drop health insurance completely, and in paying higher income taxes to provide health insurance for those that were previously uninsurable or underinsured.


So, where is the affordable healthcare?  Not here in the U.S.   




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  • They made a mess of the health care legislation. Some of the ideas were good but others were awful. You can't mandate affordability. It's like trying to repeal the law of gravity by decree. All they had to do was 3 things: 1) Require everyone to buy health insurance 2) Require insurance companies to charge everyone the same and not exclude anyone 3) Allow insurance companies to compete across state lines. And put a real short fuse on these requirements. Putting deadlines out to 2014 is like giving a license to steal in the meanwhile.

  • In reply to LucidRealty:

    I absolutely agree with you. You can't mandate affordability! The insurance companies do have a license to steal until 2014. Thanks for your comment, Gary. TLR

  • You know what You guys should stop complaining because, one the health care we have now isnt as good as it was supposed to be. also the law has just been signed so give it some time. so if u want to say u have the right to choose tell that to ur congress men or state official. If you do not have insurance and need one You can find full medical coverage at the lowest price check .If you have health insurance and do not care about cost just be happy it and trust me you are not going to loose anything!

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