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Chris Wysocki
Caldwell, NJ
The nine most terrifying words in the English language are "I'm from the government and I'm here to help." - Ronald Reagan
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We can't afford The Affordable Care Act.
On average health insurance premiums rose 9% over last year, reversing a downward trend that's been occuring since 2001. This is the first year where the supposedly "popular" features of Obamacare kicked in.
Under Obamacare, health insurers must cover the children of policy holders up to 26 years old. Obviously, that mandated coverage is a significant new expense.
Also, Obamacare eliminated coverage caps. Previously many health insurance policies had lifetime caps for coverage, meaning that there was a top end to the amount your policy would pay out. Now, nobody likes the idea of a cap, but the truth is that it held costs down. Eliminating increases cost of coverage, and thus increases premium payments made by employers and employees.
And, finally, there's the "free" screening and preventative care that insurers are required to cover. Only, those things aren't free. Covering them costs the insurance company money, and they pass that cost off to premium payers.
The more onerous aspects are even more expensive.
How expensive? We'll find out next year. But here are a few clues. My company's small group plan is usually a bellwether for premium trends. We're experience rated so increased costs are immediately passed along as higher premiums. Our September renewal just came in. The increase is 32%.
Thirty-two percent. By hiking co-pays, cutting name-brand drugs, and raising the yearly limit on individual and family out-of-pocket costs we cut the increase down to 9%.
Gee, now we're "average." Except for, you know, all that other stuff we'll be paying for now that insurance won't cover it.
Meanwhile, Obamanomics means drug shortages.
A severe shortage of drugs for chemotherapy, infections and other serious ailments is endangering patients and forcing hospitals to buy life-saving medications from secondary suppliers at huge markups because they can't get them any other way.
The shortages, mainly involving widely-used generic injected drugs that ordinarily are cheap, have been delaying surgeries and cancer treatments, leaving patients in unnecessary pain and forcing hospitals to give less effective treatments. That's resulted in complications and longer hospital stays.
So, what could be causing these shortages?
Companies abandoning the injected generic drug market because the profit margins are slim. Producing these sterile medicines is far more complicated and expensive than stamping out pills, and it can take about three weeks to produce a batch.
Only a half-dozen companies make the vast majority of injected generics. Even if other companies wanted to begin making a generic drug in short supply, they're discouraged by the lengthy, expensive process of setting up new manufacturing lines and getting FDA approval.
Ah ha! Cost controls and excessive regulation! Which is pretty much the essence of Obamacare. Throw in the inevitable manufacturing glitches and well, it's impossible to repeal the Law of Supply and Demand no matter no matter how many unicorns and rainbows you have in your pocket.
But repealing Obamacare? That's something we need to do pretty darn quick.
Posted at 20:49 by Chris Wysocki
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