Are there any health insurance companies against Obama’s plan?
There hasn’t been any health insurance company that’s directly criticized the new Obama health care plan, but their actions speak so much louder. Health insurance premiums are skyrocketing! Most health insurance companies have said it is because of the health care reform laws.
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According to the Wall Street Journal health insurance companies are seeking out additional rate increases. This is to cover the costs of the rising medical expenses and many of those insured will be paying out up to 20 percent more for their premiums.
What is the Patient Protection and Affordable Care Act (PPACA)?
The PPACA is also known informally as ObamaCare and was passed in Congress in March of 2010. After the act was passed by Congress, President Obama signed it into a federal law. The idea behind the law is to socialize the health care system in the United States.
This law will require all U.S. citizens to purchase private health insurance. For those who refuse to purchase the private health insurance, the government can impose a penalty that is upwards of 2.5 percent of that person’s overall income.
What are the basic requirements for ObamaCare?
The requirement is for citizens to buy private health insurance, which begins in 2014. For those who don’t buy health insurance they must pay the penalty. Health insurance companies will also be required to spend at minimum 80% of the premium payments received by their customers.
The 80% premium payments include those from individual and small group plans, while the percentage is increased to 85% with large group policies.
Some of the requirements for employers and health insurance will change as well. Those employers who have 50 or more full time workers must provide health insurance. If they fail to do so they will pay a hefty penalty to the U.S. Government. Employers with 25 or less full time workers with average salaries of 50,000 dollars or less are eligible to apply for certain tax breaks that will help them obtain health insurance for their employees.
Insurance companies will be banned from refusing to insure American children with preexisting health conditions. Insurance companies cannot ban annual and lifetime limits on expenses. They will also be unable to limit coverage for adults with preexisting health conditions.
Health insurance marketplaces will be state run as of 2014; however, some states can get out of these requirements under certain conditions. Health insurance can only be sold under the approval of the government within a state’s marketplace.
What has ObamaCare changed immediately in the health insurance industry?
Since the national health insurance program passed in 2010 there have been some changes. New taxes have been imposed on facilities such as tanning salons. National health insurance companies have drastically increased their premiums, costing Americans with private insurance policies much more money.
There has also been an increase of subsidized premiums for high risk pools. These include persons with preexisting conditions.
What are the criticisms of ObamaCare?
While health insurance companies have been open to why they’ve increased their premiums there are those who have been outright criticizing the plan since it was signed by President Obama. The Association of American Physicians and Surgeons (AAPS) voiced their option on the ObamaCare plan.
The group, along with several individual physicians, submitted statements and information on how the Patient Protection and Affordable Care Act is not constitutional. The AAPS is afraid the new plan will be burdensome to the whole medical community and that patients will suffer in the long run from this act.
The AAPS also goes on to say that the new health care plan will increase the cost of health care for most of the citizens of the U.S. It will also reduce the quality of the care that most citizens will end up receiving. There are those who believe that the elderly health care will be hit hardest with the new plan. Rationing of senior health insurance will in turn cause a significant increase in the average death rate among seniors.
While the premiums are increasing, the amount of health care benefits being used is decreasing. The health insurance companies are seeing record breaking profits because of this, but it is thought to be more of a short term occurrence until the 2014 act is in place.
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