Obamacare still faces these big (five) challenges

Yahoo Finance ^ | 6/25/15 | Rick Newman

[NormsRevenge]

The Affordable Care Act “is here to stay,” as President Obama said following the Supreme Court decision in King v. Burwell that upheld the law in full. The justices could have ruled that federal subisidies—integral to the functioning of the law—were invalid in 34 states that rely on the federal healthcare exchange rather than running one of their own. Instead, the court ratified the status quo, which means nothing changes.

But the controversial law still faces a bumpy future. Here are five challenges the ACA will face during the next several years:

Healthcare costs are still too high. As many enrollees are discovering, the “Affordable” Care Act is somewhat misnamed. Healthcare costs continue to rise faster than wages or overall inflation, putting a financial burden even on people who have healthcare. A recent study by the Commonwealth Fund found that 23% of Americans who have healthcare coverage are “underinsured,” meaning their out-of-pocket spending on healthcare is more than 10% of their income in a given year. Deductibles and other out-of-pocket costs have been rising because consumers and businesses have been opting for plans with lower premiums—which usually require the patient to bear more of the cost before 100% coverage kicks in. The irony is that insurance has gotten more affordable, but actual healthcare hasn’t.

The ACA includes several long-term provisions meant to explore ways to lower costs, but they may not be nearly enough to offset other trends pushing costs up, such as the retirement of the baby boomers and the development of expensive new drugs. If Congress ever gets serious about improving the ACA rather that faux-repealing it, cost will be the thing to focus on.

[itsahoot]

Every penny I earned would be consumed by premiums and not a penny left for deductibles or nice stuff like food/shelter/utilities.

If any company offered a product that very few could afford what would happen?

The truth is that medical care cost has no relationship to the customer base ability to pay.

[Pollster1]

I’m not optimistic about the remaining court challenged to Obamacare. As Scalia pointed out, the Court has spoken. Obamacare will be rewritten as necessary, but it will not be overturned, regardless of the words of the law or of the Constitution itself. This is a political decision that has everythign to do with power and nothing to do with the rule of law.

If Cruz wins, I expect Obamacare to die. Otherwise, Obamacare is with us for as long as America survives, which will not be long.

[martinidon]

I agree, it is depressing. Let me know when you find that shack, we can be neighbors.

[Myrddin]

And very little to do with the actual cost of providing the service. Cattle car medicine delivered poorly.