Supporters of Obamacare, also known as the Patient Protection and Affordable Care Act, are proposing to impose a global cap on private and public health care spending in order to solve the budget deficits faced by the country. A noble sounding cause, but one that is fundamentally flawed.
What does this mean to you? Only that the federal government could place a limit on the amount of money that Americans can spend as a whole for health care for both public and private payers. According to the authors of the bill, the current health care reform law is not enough to cut medical spending. Remember hearing that Obamacare wasn’t a government takeover on the campaign stump? Well, maybe that wasn’t entirely true.
At present, the health care reform law is trying to control health care spending by cutting funding of government-sponsored programs like Medicare and Medicaid. However, this will only result in hospitals and insurance companies passing on the cost to individuals getting private health care. Authors claim that in order to fully control health care spending, health care spending for private sectors should also be controlled.
In Massachusetts, in order to control the increasing cost of their “universal coverage” health insurance policy, the state has passed into law a global cap on health care spending for both public and private sectors. The success of this law would be the basis of whether other states will follow and accept this global cap law. If more states will implement this cap, that would mean welcoming Obamacare 2.0.
Consumers need to be aware of the changes that the health care reform law brings. It would mean higher health care costs and higher taxes to pay since it would require more health care benefits. Remember, the laws created by the federal government could ultimately impact the way you receive your health care benefits. It could also make or break your savings that was set aside for your retirement. You have a choice. You can make that choice by voting in this coming November election.