Dangerous Bet: The Risky Business of Health Insurance Shopping
TL/DR –
The author criticizes the U.S. healthcare system and specifically the Affordable Care Act (ACA or Obamacare), arguing that it is primarily driven by private insurers and thus benefits them more than patients. The author states that the ACA has resulted in enormous profits for insurance companies, comparable to those of oil companies, while not improving access to healthcare for many Americans. The piece also points out that the subsidies provided by the government for private employers’ health insurance are nearly five times the subsidy going to people enrolled in Obamacare, leading to a massive cost-shift to the government and pushing the price of healthcare further.
Experience with Open Enrollment and American Health Care
As the Christmas season approaches, millions of Americans participate in the annual open enrollment. For those not covered by employer or government health insurance, this process involves weeks of weighing up healthcare options and choosing the most affordable and suitable plan. The aim is to avoid financial ruin while still getting some access to what is fondly called the world’s best health care system.
Obamacare, designed to simplify healthcare, has its limitations, largely due to its dependence on private insurers. For insurance companies, Obamacare serves as a means for legalized extortion from policyholders and the government while providing as little coverage as possible. Meanwhile, the health insurers have been enjoying record profits.
The Complexities of Obamacare and Employer-Provided Insurance
Further complications arise due to Obamacare’s history of being contested by Republicans who disagree with its subsidies and mandates. Additionally, an alarming fact is that the government’s subsidy for private employers’ health insurance – $345 billion – is nearly five times the subsidy going to people enrolled in Obamacare. Despite individual Obamacare recipients receiving more per dollar, the question arises as to why employers are subsidized at all, causing a significant increase in healthcare costs.
On top of this, many insured Americans, including 49% of those insured through their workplace, don’t have the freedom to choose their doctors. This lack of choice contradicts the modern American healthcare principle that patients spend less on unnecessary services if they shop around for the best deal. However, the idea of shopping for healthcare services is absurd if faced with significant health issues.
High Insurance Premiums with Limited Coverage
Adding dependents to an employer-provided plan is often prohibitively expensive, leading many back to the marketplace. Even there, staying with the same plan can lead to increased costs, high deductibles, and additional co-pays. The dilemma of whether to pay for a lower deductible or risk ending up sick with a huge bill is a reality for many. The fact that we have the most expensive healthcare system with the worst health outcomes among industrial countries reflects the perversion of our healthcare system.
The 60 million people on Medicare, however, fare better with a blend of universal government insurance and private providers. This model gives them an almost unlimited choice of doctors, clinics, and hospitals. Others, unfortunately, are not so lucky due to opposition from insurance companies enjoying high profits and Medicare recipients who tend to vote against expansion.
With these obstacles in place, the hope for a healthcare model that benefits all, from birth to death, seems far-fetched. The stark reality of American healthcare continues to be a struggle for many.
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