The ARRA legislation passed in February of 2009 has helped many Americans over the last two years. The legislation provides for a 65% health insurance subsidy for people who have lost their jobs since September 1, 2008. Recipients must be sure that they qualify, both from a salary perspective and due to the date that they lost their benefits. Once they qualify, the subsidy can continue for up to 15 months, or until they qualify for other insurance. Since COBRA is generally very costly, this helps people to keep their insurance in place up to 15 months of the 18 month COBRA period.
There are several unintended consequences with this legislation. First, people who decide to take advantage of this subsidy are banking on continuing to be healthy in the next 15 months. If any family member becomes uninsurable during the subsidy period, that individual will have fewer options for coverage after the COBRA subsidy ends.
Second, this can enable people to postpone a decision on health insurance that they might not want to postpone. It is usually an eye opener for people to have an agent shop coverage for them so that they know their options when the subsidy ends. They may not even do that if they are eligible for the subsidy.
Third and most importantly, this is a very subtle way to get Americans who would normally not be dependent on the Federal Government to start depending on government assistance. Greece is the most compelling example of why we would not want to continue this trend. Once Americans get used to having assistance, it will be very hard to take it away.
Sunday, May 9, 2010
Wednesday, May 5, 2010
Health Care Reform Fallout
There are many unintended consequences of legislation the size of Health Care Reform. I hear from clients every day that have stories that need to be told.
Recently, I heard from a client who is on Medicare. Shortly after the new Health Care Reform law was passed, her doctor closed his doors without contacting his patients. When my client tried to contact him, he could not be located. She was frantic when she called me and wondered what to do.
Many doctors no longer take new Medicare patients because of the low reimbursement rates by Medicare. These rates are being cut again in June by more than 20%.
The unintended consequences are many. First, my client will have to search for a new doctor in an environment unfriendly to finding a doctor willing to accept Medicare. Second, the cost of her medical care just went up because she is forced to go to an Urgent Care or Emergency Room, just to be monitored for cholesterol and high blood pressure. Third, doctors like hers who are frustrated with the low reimbursements will continue to exit the market - worsening the ability to access health care in the US.
What stories do you have like this?
Recently, I heard from a client who is on Medicare. Shortly after the new Health Care Reform law was passed, her doctor closed his doors without contacting his patients. When my client tried to contact him, he could not be located. She was frantic when she called me and wondered what to do.
Many doctors no longer take new Medicare patients because of the low reimbursement rates by Medicare. These rates are being cut again in June by more than 20%.
The unintended consequences are many. First, my client will have to search for a new doctor in an environment unfriendly to finding a doctor willing to accept Medicare. Second, the cost of her medical care just went up because she is forced to go to an Urgent Care or Emergency Room, just to be monitored for cholesterol and high blood pressure. Third, doctors like hers who are frustrated with the low reimbursements will continue to exit the market - worsening the ability to access health care in the US.
What stories do you have like this?
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