UNDERSTANDING OBAMACARE:

Posted on in General

According to J.D.Kleinke, resident fellow of the American Enterprise Institute ( NY times Sept 30 2012), the core drivers of the health care act are market principles formulated by conservative economists, designed to correct structural flaws in the US health insurance industry. Obamacare removes the biggest obstacles to the health insurance system like the absence of a truly competitive health insurance marketplace.

One of the major obstacles that is removed is the requirement by health insurers for younger healthier people to subsidize older, sicker ones. Because health insurance is expensive many younger persons opt not to have health insurance. Obamacare requires that everyone, including the young healthy persons, have health insurance. The mandate is about personal responsibility.

The health insurance industry has quietly supported Obamacare. It levels the playing field and expands the potential market for insurers by tens of millions.

Currently, there are about 50,000,000 uninsured persons in the U.S. Sources report that between 27,000 and 50,000 persons die each year because they do not access healthcare in a timely manner. This is clearly unacceptable.

Health insurance exchanges are pro-marketplace. They free up buyers and sellers, standardize the products and add pricing transparency. Kleinke calls this “market economic 101”.

With the new transparency, mobility and choice of exchanges, businesses and individuals can decide which insurers that they want and which insurers deserve their dollars.

Obamacare is not medicare for all. It is not a public option- a health plan offered by a federal insurer. It is a ratification of market ideas, modified to address big problems unique to US health insurance.

In essence, Obamacare is a good deal for everyone- the uninsured, the underinsured and the non insurable ( those with pre-existing conditions).