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Busting the Top 10 Health Care Reform Act Myths

By on May 22, 2010 in Facts about Health Care Reform

In the midst of the political debate about reforming the health care system in 2009 and 2010, a number of unfortunate myths were spread about what this reform would actually mean to individuals and their families. Since the bill was actually passed in March 2010, it’s important for people to get a real sense of what it means and what’s going to happen, so that they can prepare themselves for the changes that will occur over the next several years.

Myth: There will be ‘death panels’ deciding who deserves care and who instead be subjected to euthanasia.

Fact: This was never in the bill, and was never intended to be added to the bill. At one point there was a provision designed to compensate doctors for time spent discussing end-of-life care with those patients who wished to have the discussion. In fact, these kinds of discussions between a patient and their doctor are designed to make the patient’s wishes clear when it comes to whether they’ll be put on a ventilator or given a feeding tube. The hope is that people who are nearing the end of their lives will have the security of knowing that their wishes will be respected, no matter what their wishes are. This provision ultimately had to be removed from the bill to avoid the political arguments about ‘death panels’.

Myth: Health care is being nationalized.

Fact: While the possibility of a single-payer system was in discussion for some time, it was rejected early in the process. Instead, the bill maintains the current system of health insurance and adds as an option state-run health insurance exchanges through which individuals and small businesses will be able to purchase health insurance coverage.

Myth: Any government involvement with health care will automatically make it into a disaster.

Fact: The government has been running Medicaid and Medicare, along with care through the Veteran’s Administration, for years, and many of the same people arguing that the government’s involvement with health care would be disastrous were claiming that one of their reasons for this was the desire to protect Medicare. The people who receive health care through these programs actually have higher than average levels of satisfaction with their coverage.

Myth: Doctors will have their wages dictated to them by the government.

Fact: Currently, doctors practice privately and then decide what they bill to whoever the patient has coverage through. Often, the company then negotiates with the doctor or dictates what they’ll be willing to pay for the services. This will work the same way under the new system.

Myth: You can’t keep your private insurance.

Fact: There is nothing in the health care reform bill that would take away your private insurance. They’re only adding additional options to make sure that health care will be available, affordable, and actually purchased by a larger portion of the population. At one time they did consider the possibility of moving to a single-payer system, but this idea was dropped early in the process.

Myth: The bill cuts Medicare coverage

Fact: This is one is true, partially. While the money going into Medicare is projected to be cut, the target of the cuts is in the area of making the system more efficient. Also, people who fall into the Medicare coverage gap (often referred to as the ‘doughnut hole’) are going to begin receiving tax rebates to help them deal with the otherwise uncovered expenses. In general, Medicare’s financial situation is projected to improve under the recent health care reform.

Myth: There’ll be no choices for the kind of coverage you want.

Fact: You’ll still get to choose your coverage as you do today. If you work for an employer who offers health care benefits, you’ll pick among the plans that they offer to you (or if you don’t like those plans, you can look elsewhere). If you don’t receive health care coverage, you’ll have the option to buy it through the state-run exchanges and you’ll get to choose which of the plans on the exchange you purchase.

Myth: Health care reform is socialized medicine.

Fact: Creating a socialized system of medicine was never the intention of the reform bill, and isn’t one of the things the bill will do. While the reform does take steps to make coverage available to more people who can’t afford it, similar myths that this amounted to socialized medicine were spread during the debate over the creation of the Medicare system (and notably, even the people complaining about the evils of ‘socialized medicine’ have generally not been calling for the complete dismantling of Medicare).

Myth: You’ll pay higher taxes to cover health care reform.

Fact: The only people who are projected to pay higher taxes are those in the highest tax brackets (above $200,000 for individuals, and $250,000 for married couples filing jointly). Eventually, those receiving very expensive health care plans from their employers will also be taxed on that benefit. The vast majority of the country will not be paying any additional taxes.

Myth: Health care reform will cause health care to be rationed.

Fact: It’s already the case that health care is effectively being rationed. Only the extreme minority of the country can currently afford to directly pay for any health care they could possibly need without having to deal with whether their insurance company will give permission for a procedure or trying a particular drug. Many people currently avoid seeking care at all because they have no insurance and can’t pay for the care they need directly. In addition, when people try to use their insurance coverage they’re always in fear that the company will refuse to cover them, or come up with an excuse to cancel their policy entirely. The purpose of the health care reform bill is to address these injustices, and improve the availability of health care to everyone.

The political fight over health care reform may have confused many people about what the final bill would actually do, but now that the smoke is beginning to clear the real information is coming to light. You should do your best to familiarize yourself with the schedule for the parts of the bill to go into effect and exactly what they’ll do so that you’ll have every possible opportunity to make the decisions about health care and your finances that will best serve the well-being of yourself and your family.

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10 Myths about the New Health Care Reform Act

By on April 14, 2010 in Facts about Health Care Reform

The new health care reform law has spawned enormous controversy. Throughout all of the debate, it is important to realize that not everything you hear about the reform is accurate. The following will exam the many myths regarding the new law.

One of the most widespread falsities regarding the reform is that those who hold private insurance can no longer keep it. The law will broaden government coverage for those who cannot afford private insurance, you will not be kicked off your private health care plan. Although if your plan provides “too much”, it will be taxed to provide for the increase in Medicare and Medicaid.

It has also been said that doctors’ compensation will be determined by the government, this is also incorrect. Doctors’ salaries will still be determined privately, unless they are working in clinics covered by Medicare or Medicaid.

Medicare and Medicaid coverage will not be reduced. The health care law is aiming to broaden its scope of how many people will receive these government paid programs by lowering the lowering the age limit for Medicare from 65 to 55, and by raising the poverty line for those eligible for Medicaid

There will be choices when it comes to health insurance despite popular belief. You may end up with the same insurance plan you always had with your employer. Even if your employer decides to change plans, there will be different levels of health insurance coverage you can choose from.

There will be a few tax increases, but not everyone will be affected. Those people who make $200,000 will experience a tax hike, as well as those who have expensive health insurance plans, termed “Cadillac plans”. This sounds simple, but anyone that operates a LLC claims their business income as their own which means we are now taxing small businesses even more. Anyone that has “no co pay” plans such as government employees and the majority of hospital employees will now be taxed on their health insurance.

Another myth that spread like wildfire was the future existence of so-called “death panels”. This rumor is false as there were never discussions about including “death panels” into the new reform. There was some talk at one time about including provisions for advance care planning, which would merely provide consultations about life-sustaining measures to those whose opted for it, but never would a “death panel” be involved.

Finally, many citizens are under the false impression that their health care would be portioned out or allocated unfavorably. The health care law actually takes a stab at this problem that already exists within private health insurance plans. Many companies will terminate coverage when an enrollee becomes seriously ill. In fact, this is a common practice. The new health care system will prohibit insurance companies from terminating coverage for serious illness, and will not allow insurance companies to deny people with pre-existing conditions to enroll in the first place. Although seeing as health insurance companies are profit based business like any other, this reduces their margins which will result in an increase in prices for those that have coverage for simply a “just in case”.

The health care reform law has its advantages and disadvantages. Regardless of your opinion, it is important to separate myths from reality to fully understand the issue.

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10 Health Care Reform Myths

By on April 6, 2010 in Facts about Health Care Reform

Since the work on the new health care reform act was announced, many claims have been put forward about how the changes will make things worse for the average American. Here is the truth about ten of the most persistent myths:

Myth 1: Health care reform will lead to rationing of health care.

Fact: Health care rationing is already happening every day – insurance companies are in the news all the time for denying coverage for particular treatments or dropping patients who are too expensive. Insurance companies use these techniques to avoid paying for their most expensive customers in order to protect their bottom line at the expense of the health of their policyholders.

The reform bill will make health care more available rather than less, because people who become sick will no longer have to live in fear that their health insurance company will invent a pretense to cut off their coverage. In addition, beginning in 2014, insurance companies will not be allowed to deny coverage on the basis of pre-existing conditions. In the interim, temporary insurance pools will make health insurance coverage available for those who are refused by the insurance companies.

Myth 2: The bill provides support for euthanasia and the creation of “death panels”.

Fact: Although an earlier draft of the bill included coverage for advance care planning (so that if a patient wanted to discuss their wishes with the doctor, the doctor could be reimbursed for his time), these provisions were removed for political reasons. Euthanasia beyond the removal of life support was never a part of the bill, and advance care planning was never intended to be mandatory.

Myth 3: Health care reform will increase taxes.

Fact: For the majority of Americans (over 98%), taxes will be unaffected by health care reform. High-income earners (singles earning more than $200,000 a year and couples earning more than $250,000) will pay more in Medicare taxes, with the current rate of 1.45% being increased to 2.35%. In addition, if your employer pays very high premiums for your insurance (more than $8,500 for singles or $23,000 for families) you will have to pay an excise tax on the policy.

Myth 4: The health care reform bill introduces a nationalized health care system.

Fact: The new health care system will not be a single-payer system like in Canada or the UK. State-based insurance exchanges will be administered by either a government agency or a non-profit organization. Insurance companies will remain the primary source of insurance for large companies, and will still be able to compete with the exchanges for policies with small businesses and individual customers.

Myth 5: Health care reform is the first step towards socialized medicine.

Fact: Socialized medicine, such as the systems that exist in Russia and China, involve the government paying for and providing medical care. These elements will not be present in the new American health system – health care will still be provided by private doctors and paid for by private insurance companies.

Myth 6: The government is ill-equipped to run a health program.

Fact: The government already runs health programs for seniors and veterans (Medicare and the Veteran’s Administration). According to studies, these programs provide better health care and more customer satisfaction than most employer-funded insurance policies.

Myth 7: Health care reform will take away choice.

Fact: All of the choice provided by the array of insurance companies that are available will still be out there. In addition, there will be four tiers of insurance to choose from in the exchanges, from a bronze plan that covers 60% of the benefit costs of the plan to a platinum plan that covers 90% of the benefit costs of the plan.

Myth 8: The government will set doctors’ wages.

Fact: Doctors who work in community health clinics providing care to Medicare and Medicaid patients will be paid by the state government, but the majority of doctors will work privately and negotiate their own fees with whoever is paying them (whether it’s the individual paying directly, or their insurance company). This is exactly how things work now.

Myth 9: Medicare coverage will be reduced.

Fact: According to the Commonwealth Fund, health care reform will improve the Medicare program by reducing the costs of prescription drugs, improving preventative care and developing comprehensive care systems. The new bill also provides for a further nine years of funding for Medicare.

Myth 10: Health care reform will replace your current insurance.

Fact: The new system does not replace existing private insurance. Insurance will still be provided by private companies and if you are already covered you will be able to stay with your current insurer if you choose. Insurance companies may need to alter your policy in order to meet the new requirements. You may also choose to change to a different insurance company which better meets your needs.

Hopefully, this information has helped to dispel some of the myths surrounding the new health care reform bill and reduced your concerns about what the changes will mean for you. While adapting to change is intimidating, after everything has settled down Americans can look forward to a future where the only thing you have to focus on when you get sick is doing your best to get better, not whether your insurance company is going to be able to find an excuse to cut off your coverage and leave you with no access to treatment.

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