How Does Obamacare Affect You? Part 2

Wait times in Canada medical system

Last week, just some of the effects on businesses were analyzed. It was shown that businesses will have to pay more in taxes, have excessive regulation, and lose incentive to expand, and even downsize if necessary. Trickling down from the effects of this bill onto businesses, people’s personal finances will be severely affected. Let’s take a look at some areas where you may feel the pinch.

Knowing that businesses will have to downsize to ensure they are below the 50 employee threshold, that means layoffs of workers, namely people like you. Small businesses have already begun to lay off workers, and cut back hours making full-time employees part-time. That means less pay, or no pay in the case of being laid off. Not only do people lose their paycheck, but also medical benefits that full-time jobs provide. From personal experience, I know that purchasing health insurance out-of-pocket is extremely expensive, and not a viable option for most families.

So, people being laid off, and/or reductions in their hours. Obviously this is a huge blow to many American families. But the effects of the bill do not stop at the business sector. As this is a health care bill, the health care system will be severely impacted, and that trickles down to you (next week, I will examine the effects on the medical system).

The bill requires that all Americans purchase health insurance. As previously stated, purchasing insurance out of pocket is extremely expensive, and not an option for many families. But, the bill has a tax included that will penalize anyone who does not comply with this mandate. For every uninsured adult in a household, the penalty will be $95 in 2014, $325 in 2015, and $695 in 2016. Put simply, this bill puts many families in a position where they cannot afford to purchase insurance, but they can’t afford not to have insurance. But, the effects do not stop there.

Given that there is a mandate to purchase insurance, it is estimated that nearly 32 million more people will be added into the medical system. The system, as of now, is overloaded as it is, with a lack of primary care physicians. What will happen when we add 32 million more people into that system? All these people will flood the system, and create an even greater overload. Not to mention that the new law has not one provision for new doctors. That means longer waiting room times for you and your family, with a decrease in access to basic medical care.

Hold on, the effects on you don’t stop there either. Don’t forget that insurance companies have to take these 32 million people into their system, and now give them coverage. Many people who were previously denied coverage will now have to be covered under the law (illegal to deny coverage). So all those people’s expenses will be placed on everyone else, hence a drastic increase in your premiums. Premiums will be going up, but coverage will be going down. You and your family will be paying more for less.

To wrap things up, effects from this bill will be severely impacting you, whether you are aware of it or not. Coming next week: how the Affordable Care Act will affect the medical system! You don’t want to miss this!

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