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Don’t Confuse Me With Facts

Stanley
Feld M.D.,FACP,MACE

Sometimes,
in order to believe a certain ideology, some smart people take the position of
not wanting to be to be confused by facts.  

Countries
with socialized medicine have said their citizens are happy with their care.
Therefore, this is the evidence that the U.S. should have a socialized medicine
system.

Less
than 20% of a nation’s population experiences the healthcare system at a moment
in time
. The 80% who are not sick are happy because they feel secure. If they
got sick they believe they would receive free medical care. The result is the
majority of the population under a socialized medical system likes the system.

This
Is A FACT (TIAF)

Dr.
Donald Berwick former acting head of CMS and author of Obamacare wrote, in a
personal letter to “Senior Government Officials and Senior Executives of the National
Health Service in England after doing a review of the NHS.”

“You are stewards of a
globally important treasure:
the NHS. In its form and mission, guided by the
unwavering charter of universal care, accessible to all, and free at the point
of service, the NHS is a unique example for all to learn from and emulate.”

Dr.
Donald Berwick added, “redistribution of
wealth is the very essence of a compassionate healthcare system for all.”

I
disagreed with Dr. Berwick in an earlier blog. I said citizens responsible for
their own health, healthcare and healthcare dollars are essential ingredients
for a cost efficient healthcare system.

Patients
are the primary stakeholders. Patients must be actively responsible for their
health. They must have a moral and intellectual responsibility for their own
health as well as a financial incentive to be responsible for themselves.

They
must have own their healthcare dollars, have the freedom to make their own
healthcare choices and have access to care.

The
government must create educational vehicles to help patients make the correct
choices.

 The government must provide financial
incentives for people to make those choices.

Medical
care and medical decisions made for patients by a bureaucracy has historically
failed to control costs or provide efficient and compassionate medical care.

Socialized
medicine run by bureaucrats has failed in England. Medical care consumes more
than 50% of England’s GDP.

This
Is A Fact (TIAF)

Medicare
is wonderful for people over 65 years old. Seniors could not buy healthcare
insurance from a healthcare insurance company. The healthcare industry had not
figured out how to make money from these people so they disqualified them.

If
the government got rid of the $250 billion dollars in administrative waste and
inefficiencies each year, Medicare and Medicaid would become sustainable.

This
Is A Fact (TIAF)

Medicare
and Medicaid provide no incentives for patients to take care of their health.

Chronic
diseases are ineffectively managed. The complications of chronic diseases
consume 80% o
f Medicare’s healthcare dollars. If chronic diseases were managed
properly the complication rate from chronic diseases could be decreased by at
least 50%.

This
Is A Fact (TIAF)

Many
patients do not have the incentive to take care of themselves
. They leave it up
to the system to take care of them.

Unfortunately,
it has be demonstrated that a government controlled system creates ever
increasing bureaucracies and cost inflation.

This
Is Fact. (TIAF)

Most
all of the nation’s attempts to control healthcare costs in the past 50 years
have failed. (Price control of the 70’s, HMO’s, Managed Care, PPOs.)

These
systems had to be abandoned. Nevertheless, healthcare policy wonks continue to
give the same advice and make the same mistakes. The policy wonks’ advice is to
institute greater government controls over medical care.  

This
Is A Fact (TIAF)

 A recent report about England’s hospital
conditions in Mid Staffordshire has emphasized the defects in England’s 60 year
socialized medicine experiment.

The
report only covers hospital inpatient defects. It does not cover the many
defects in outpatient services. 

 The report is “Report of the Mid Staffordshire NHS Foundation Trust
Public Inquiry

5
February 2013 to the Secretary of State.”

The
report stated that;

1. For
many patients the most basic elements of care were neglected.

2. Calls
for help to use the bathroom were ignored and patients were left lying in
soiled sheeting and sitting on commodes for hours.

3.
Patients felt afraid and disenfranchised.

4. Patients
were left unwashed, at times for up to a month.

5.
Food and drinks were left out of the reach of patients and many were forced to
rely on family members for help with feeding.

6. Staff
failed to make basic observations and pain relief was provided late or in some
cases not at all.

7. Patients
were too often discharged before it was appropriate, only to have to be
re-admitted shortly afterwards.

8.
The standards of hygiene were at times awful, with families forced to remove
used bandages and dressings from public areas and clean toilets themselves for
fear of spreading infections.

9. These
healthcare conditions caused the deaths of an unknown number of patients.  

Robert Francis QC Inquiry Chairman who wrote
the report covered a wide range of system failures. I will only highlight the
key failures contained in the 500-page report. This report was mandated by the House of Commons.

These defect are occurring throughout the
entire NHS system. The NHS is not as glorious as the Obama administration or
Dr. Berwick’s has idealization the NHS to be.

"The
story the report tells is first and foremost of appalling suffering of many
patients. This was primarily caused by a serious failure on the part of a
provider Trust Board. (Bureaucracy)"

 "The trust board did not listen
sufficiently to its patients and staff or ensure the correction of deficiencies
brought to the Trust’s attention."

The NHS bureaucracy did not put patients
first. It put the various levels of bureaucracy in charge. Bureaucracies deaden
incentives and lose focus on who is the main stakeholder in the healthcare system.

"The
trust failed to tackle an insidious negative culture involving a tolerance of
poor standards and a disengagement from managerial and leadership
responsibilities".

"This
failure was in part the consequence of
allowing a focus on reaching national access targets; achieving financial
balance and seeking foundation trust status to be at the cost of delivering
acceptable standards of care."

Appropriate
statistical reports and collection of reports are more important that
appropriate patient care.

Robert
Francis goes on to outline how the bureaucracy puts measurements first, not
patients.

None
of the bureaucrats want to take responsibility for what is going wrong. Finger
pointing and blame shifting is an occupation in the British healthcare system.

"The
NHS system includes many checks and balances. These checks and balances should
have prevented serious systemic failure of this sort."

"There
were and are a plethora of agencies, scrutiny groups, commissioners, regulators
and professional bodies, all of whom might have been expected by patients and
the public to detect and do something effective to remedy non-compliance with
acceptable standards of care.

For
years that did not occur."

Watch out America!

We are falling into the same trap with Obamacare.
It might sound good to some. It will not work judging by the experience of
others.

Unfortunately,
the Obamacare’s model is the British healthcare system. I do not think the
traditional media should praise it. The traditional media should publish the
facts of history.

The
traditional media should call for the repeal of Obamacare.

 

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Speaking Of Chaos And Uncertainty

Stanley Feld M.D., FACP, MACE

I ended my last blog with,

“President Obama’s goal is to create more chaos
and dysfunction in the healthcare system. “


“Only then can the government really step in and
say let me help you.”


It is the only
reason President Obama told the then Senator Kerry and Congressman Frank not to
worry if the final bill does not have a public option.

Kerry and Frank said
Obamacare would not work without a public option. The only thing that would
work is a single party payer system.

  

 

 

With limited benefit
plan, employers would avoid the broader $2,000 per-worker penalty.

It is not
clear is whether employers could face a $3,000 penalty per individual for any
employee who opts out of the limited benefit plan.

Four
problems are being discovered with the health insurance exchanges.

1.
If the employee is a low wage employee that refused employer provided insurance
he is not eligible for a government subsidy.

2.
If the federal government runs the health insurance exchange, the federal
government by law is not permitted to provide a subsidy. Only state run
healthcare insurance plans can provide subsidies.

Over
50% of the states have refused to run health insurance plans. Therefore people
who need subsidies are not eligible in over 50% of the states.

3.
The law calls for tax credits and not subsidies. All of a sudden the words “tax
credits” have been dropped in discussion. Only taxpayers who earn over $38,000
per year pay taxes. The only way a person can utilize a tax credit is by
deducting the tax credit from taxable income.

The
government has gotten around this problem by giving the healthcare insurance companies a tax credit in advance and calling it a subsidy for qualified
persons.

Those
workers who opt out of the employer provider plan for a health insurance
exchange plan would not be eligible for a government subsidy. 

A full-time worker earning $9 an hour would
have to pay as much as $70 a month for a mid level exchange plan from a health
insurance exchange, even with the subsidies, according to the Kaiser Foundation.

At $12 an
hour, the workers' share of the premium would rise to as much as $140 a month.

 A $12 an hour worker cannot afford to pay $1680
a year for healthcare insurance.

Mid
level coverage is limited coverage. A patient might need a higher-level plan that costs $200
a month or $2400 per year. This plan is out of reach for most patients making $40,000/year.

 "There are going to be many people who will
be ill and need a more robust plan,” a
health benefit
advisor proclaimed.

Currently, only one-quarter of workers eligible
for the mini-med plan take it. Ms. Newman said,
"We
really feel like the people who are not taking it now will not take it
then."

There
is a huge glitch in the health insurance exchanges’ individual healthcare
market. This glitch will make the health insurance exchanges more costly and
less attractive to all stakeholders. It will decrease the number of people
insured and increase the federal deficit.

The
majority of the individual market is comprised of low wage earners with
irregular work histories.

These people may be
self-employed or seasonal workers with surges of income. They could be
part-time workers with several part time jobs. 

Obamacare does not permit cancellation of the health insurance exchange
policy because it will mean that people will be in violation of the federal mandate
if they do not have insurance. 

The Obamacare bureaucrats realize that people receiving subsidies might
have a hard time paying the premiums even if they receive a subsidy.

These people live from month to month. Some have surges in income. Some
collect commissions one month and nothing the next month. Most have old cars.
They might suddenly need new brakes or new tires. Some might get the flu and have
to stay home without pay for a week. There are many reasons low wage earners
suddenly have a hard time paying healthcare premiums even if they are subsidized.

Many do not have bank accounts or credit cards. There is no such thing
as auto pay in their world.

The Obamacare bureaucrats writing the health insurance exchange
regulations are people with nice bureaucratic jobs with steady paychecks. They
have no idea how difficult it is to make ends meet for these people each month.

The healthcare insurance industry
does not care about these problems. It may provide for a grace period of a week or two. If a healthcare
policyholder fails to pay their healthcare policy premium the policy is
cancelled in the real world.

In the bureaucratic world of Obamacare the healthcare insurer cannot
cancel the insurance in the usual way.

HHS has created through multiple regulations a whole new and very
restrictive method of discontinuing healthcare policies that must be followed
to a “T” by the healthcare insurance industry.

This method will lead to even more dysfunction in the healthcare system.

HSS has instituted a 90-day grace period for paying premiums only for those
receiving federal subsidies from the health insurance exchanges
.  

At the end of the 90-day grace period the policyholders must pay the
entire three months due. If they could not pay the premium monthly how are
they going to pay the three month fee?

Aetna was not so dumb in dropping out of the health insurance exchange
system after all.

During the three-month grace period if a policyholder get sick and
needs care they will be entitled to care.

Who will bear the financial responsibility for the care? Not the
patient.

HHS has decided to split the financial responsibility between the
insurance companies and the providers. The insurance company will cover the
first month and the hospitals and physicians will cover the next two months.

After three months the insurance company can cancel the insurance.  However people can re-enroll again during the
next signup period without penalty.

If one is clever enough a patient can receive 12 months of care and
coverage for nine months of premiums without penalty.  

“Along with paying for services during the first month of
the delinquency, the insurer must:

1) notify HHS of the non-payment;

2) notify
providers of the possibility of denied claims during the second and third
months;

3) notify the insured that he/she is delinquent;

4) continue to collect
the advanced tax credit on behalf of the policyholder;

5) return the tax credit
for the second and third month to the Treasury;

6) issue a termination notice
to the insured at the end of the grace period.”

This procedure is a
very large administrative burden and potential financial loss because of the
federal government's decreases in funding. Most providers and insurance companies will quit
participating in the health insurance exchange program.

Rather than increasing affordability and access to care it will decrease
access to care and affordability of care. It will create a more dysfunctional
healthcare system.

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Is There A Solution?

Stanley Feld M.D.,FACP
MACE

 

A study of the organization chart presented in my last blog shows
that Obamacare will be an unworkable mess. 


The health insurance exchanges look like they
are going to make healthcare more expensive because of 20,000 new
regulations.  Employers are looking for
ways to avoid Obamacare and get out of the healthcare coverage business.

Employers
are realizing they can avoid certain penalties under Obamacare by offering very
limited plans that lack key benefits which satisfy the true definition of
healthcare insurance. 

Benefits
advisers and insurance brokers are increasing their commissions by offering low
benefit plans that cover minimum benefits such as preventive services. The
healthcare plans provide just enough minimum benefit requirements to avoid Obamacare’s
penalty. If an employee wants real coverage he is on his own.

Obamacare’s
promise was that healthcare insurance coverage would broadly enrich at lower
affordable costs.   

Federal
officials say these limited benefits plans, in concept, would appear to qualify
as acceptable minimum coverage under the law, and let most employers avoid an
across-the-workforce $2,000-per-worker penalty for firms that offer nothing.

 It is unclear how many employers will adopt the strategy this year.
There are dozens of brokers and benefit administrators discussing this strategy
with their clients. I bet many will adopt this strategy.

"There
had to be a way out"
of the penalty for employers with low-wage workers,
said Todd Dorton, a consultant and broker for Gallagher Benefit Services Inc.,
a unit of 
Arthur J. Gallagher AJG -0.44% &
Co., who has enrolled several employers in the limited plans.”

Obamacare
requires employers with 50 or more workers to offer coverage to their workers
or pay a 2,000 per worker penalty.

The
employers and benefits experts initially thought the rules required robust
insurance with a long list of  "essential" benefits.

Federal
officials confirm the mandates affect only plans sponsored by insurers” that are sold to small businesses and
individuals.

Healthcare
insurance “sponsored by insurers”
that are sold to small businesses and individuals affect only about 30 million
of the more than 160 million people with private insurance.

Employers
provide these “insurer sponsored plans”
to 19 million out of the 30 million people. These plans are going to disappear.

 Some benefits advisers feel they face
regulatory uncertainty. New regulation can cancel older regulations. These
advisors say they would adjust to new regulations as regulators clarify the
law.

According
to Obamacare, regulations written by the multiple new agencies, larger
employers with more than 50 workers only have to provide preventive services,
without a lifetime or annual dollar-value limit, in order to avoid the
across-the-workforce penalty.

Such policies would generally cost far
less to provide to employees than paying the penalty or providing more
comprehensive benefits.  

Most low-benefit plans would cost
employers between $40 and $100 monthly per employee, according to benefit
firms' estimates.

These
plans essentially provide no insurance for healthcare problems if someone needs
insurance. The financial burden falls directly on the consumer.

Obama
administration officials confirmed in interviews that the low benefit plans
would be sufficient to avoid the across-the-workforce penalty.

Several
Obama administration officials expressed surprise that employers would consider
the low benefit approach.

"We
wouldn't have anticipated that there'd be demand for these types of band-aid
plans in 2014," said Robert Kocher, a former White House health adviser
who helped shepherd the law. "Our expectation was that employers would
offer high quality insurance."

 Another trick benefit managers are offering
small employers in order for them to avoid higher costs of premiums due to
compliance with some of the provisions in Obamacare is early yearly renewal of
preexisting healthcare coverage. UnitedHealth, Aetna and Humana are offering
small companies this option. The savings is significant.

Self-insured
companies face fewer changes under Obamacare. Many small companies are now switching
to self-insurance. Large corporations have been self-insured for years.

I
have previously discussed the large trend to hire only part time employees to
avoid the penalty as well as the requirement to provide insurance.

Many
employers are trying to get out of providing healthcare insurance to employees.
Employers fear they will be penalized by the Obama administration at a later
time. The administration is constantly changing regulations. This has lead to
tremendous uncertainty.

Some
Obama administration regulators worry that some of these strategies will be
widely adopted. If this happens it could decrease the effectiveness of
Obamacare’s online health-insurance exchanges.

Only
older and sicker workers, who need real healthcare insurance coverage will opt
out of low benefit employer coverage and join the health insurance exchanges.

The
premium cost for good coverage in Obamacare’s health insurance exchanges is
high already. The adverse selection will drive these costs even higher.

The
whole idea behind Obamacare’s health insurance exchanges is to force healthy
people to pay for the resources used by sick people. (“Redistribution of
wealth”)

The
Obama administration refuses to believe options to avoid Obamacare will be a
widespread trend.

How
come? Didn’t congress exempt itself from Obamacare?

"Any
activities that take place on the margins by a small number of employers would
not have a significant impact on the small group or the individual
market," said Mike Hash, director of the department's Office of Health
Reform.”

These
new plans are a substitute for the Obamacare exempt Minimed plans. Companies
that provided Minimed plans received over 13,000 waivers for Obamacare until
January 2014. Companies such as McDonald and Burger King provided Minimed Plans
to employees.  

All
of these twists and turns make Obamacare look like it is unworkable. It is!

President
Obama’s goal is to create more chaos and dysfunction in the healthcare system.

Only
then can the government really step in and say let me help you.

Then
the government can provide a single party payer system and complete the journey
to socialized medicine.

Based
on past experience in many other countries, the result will be skyrocketing costs
and increased deficits. 

Americans
have a lot to look forward to. The only was out is to repeal Obamacare and
replace it with a consumer driven healthcare system.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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One Picture Is Worth 1,000 Words

Stanley
Feld M.D.,FACP, MACE

One picture is worth 1,000 words.
The second picture says it all.

Chart of agencies 9 22 2013
The list of one humdred and fifty nine new bureaucratic new agencies can be found at https://libertylegalfoundation.org/obamacare-class-action/quagmire-of-new-obamacare-agencies/#.UkNfRmRgZlQ

The one hundred and fifty–nine new agencies generated by the
Accountable Care Act (Obamacare) increases the complexity of an already
uncontrollable bureaucracy. Americans have seen many examples of the
inefficiency and waste because of the growth of bureaucracy in everyday life.

Jpg height of rules
http://stanleyfeldmdmace.typepad.com/repairing_the_healthcare_/2013/09/employer-mandate-confusion.html

 

 To date, before Obamacare
has been in full swing, these agencies have created the pile of regulations
demonstrated by Mitch McConnell.

 What are the chances the
recipients of these regulations will understand and obey all these regulations?

 What are the chances the
government bureaucrats can enforce these regulations?

What are the chances favored,
privileged parties will be exempt from these regulations?

What is the value added cost
these agencies and regulations provide for the direct treatment of patients
with disease?

These are all good questions.
The answers are not readily available. The administration, our congressmen or the
traditional media do not discuss these questions.

The American public has
already felt the consequences of the growth of bureaucracy and regulations.

Seventy seven percent of new
jobs have been part-time jobs
. A person working less than 30 hours a week is
not required to receive healthcare insurance from his employer. Employers have
done this to avoid an Obamacare penalty.

Healthcare insurance
premiums for next year are skyrocketing. The Obama administration continually
tells the traditional media that insurance premiums will be affordable and
decrease in 2014.

True unemployment rises to
over double digits while government statistics claim it is falling. It is a
statistical trick.

Americans are noticing the
sting of the 20 hidden taxes Obamacare has put in place. Despite these taxes,
the deficit for this year remains one trillion dollars. It means the
administration is spending more despite the tax increases.

The Democrats keep saying we
must raise the debt limit. The Federal Reserve keeps saying we need to print
more money. President Obama keeps saying you must pay the bills Americans and
congress voted to incur. America cannot default on its debt.

Few are saying we must
decrease the debt by decreasing bureaucracy, regulations and inefficiency.

Fewer are saying we must
stop this overspending.

President Obama has given
countless waivers to countless companies. The first waver was MacDonalds which provides
Mini-Med insurance to their low wage employees. Mini-Med insurance is worthless.
It provides practically no healthcare insurance coverage.

President Obama figures that
all these people would sign up for the Health Insurance Exchange rates. These
exchanges would provide tax credits for the low wage income earner by law. The
law seemed to change in the last few months from tax credits to subsidies
without congressional approval. Law wage earners do not pay taxes and cannot
benefit from tax credits.

After October 1 we will see
if young healthy persons without pre-existing condition sign up for healthcare insurance
through these health insurance exchanges.  

 The only insurance rates
seen through these exchanges so far are the California health Insurance exchange
rates. The rates are too high to buy adequate healthcare coverage for someone
making $40,000 per year. The affordable rates do not provide adequate healthcare
insurance coverage.

 The Obama administration
claim’s that the New York State rates are lower than the private insurance
rates. It might be true for certain levels of coverage. The reality is the
private insurance rates in New York are too high. The New York State Board of
Insurance permits healthcare insurance companies to receive an unconscionable
return on investment.

A one year delay of
Obamacare for corporations will get President Obama past the mid term
elections. It will permit public awareness of the harm Obamacare is doing to
the economy which the administration is striving to keep hidden.

After the election cycle it
will dawn on the majority of the public that Obamacare is a destructive
train-wreck to the economy and economic growth.

The delay will also have a
lesser effect on the tremendous increase in deficit spending that would
diminish the debate on the administration’s overspending.

President Obama doesn’t seem
to think deficit spending is an important issue.  He is also not bothered by the Federal Reserve’s
quantitative easing.

The most offensive action by
President Obama is exempting congress and the congressional staff from
Obamacare.  

Why should the individual
hard working person suffer the effects of Obamacare when government officials
do not? 

Can Obamacare work when we
have so many agencies generating so many regulations? Can it work when so many
people have waivers and exemptions?

I doubt it!

No only is it not fair to
hard working people. It is probably unconstitutional.

It doesn’t look like the
American individual taxpayers that are not exempt from Obamacare are going to
get much help from the Supreme Court.

Maybe President Obama’s goal
is to destroy the healthcare system’s infrastructure. He is setting up the
failure of Obamacare.

Obamacare seems to be designed
to destroy our healthcare system. Maybe Obamacare is not supposed to work. Maybe
it is designed to cost so much that the entire economy will fail.

This can be the only reason
Obamacare has been permitted to continue to exist by both Democrats and
Republicans.

Obamacare is neither affordable
nor executable.

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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What Are Private Insurance Exchanges?

Stanley Feld M.D.,FACP,MACE

Corporations have been providing healthcare insurance
since after WWII. The cost of healthcare insurance has been rising since.

The increase in premiums became intolerable in the
1980’s when cost shifting occurred. Medicare decreased reimbursement and the
fees were shifted to private insurance.  Several experiments in healthcare coverage
were tried to reduce the cost to employers. All the schemes failed to control
costs.

The schemes include managed care and HMO’s. All the
insurance schemes were defined benefit plans. Employees were immune from
responsibility for themselves or their healthcare dollars.

As the costs have risen to unsustainable levels
corporations have been trying to figure out how to get out of providing
healthcare coverage for their employees as a benefit.

Most employers, large and small, want to limit their
exposure to healthcare premiums and Obamacare penalties.

A movement to limit employment to less than 30 hours
a week to avoid providing healthcare insurance to employees and avoid Obamacare
penalties has become viral.

No one has tackled the real reasons for the rising
healthcare costs. No one has tackled the perverse incentives and advantages
given to the healthcare insurance industry all these years.

I have argued that this perverse incentive can lead
to all the other perverse incentives initiated by the rest of the stakeholders
in the healthcare system in order to survive.

Once more the healthcare insurance industry figured
out how to increase their profits while making it appear they are helping both employers
and employees.

It must be remembered that the healthcare insurance
industry profits through both private insurance and government provided
healthcare coverage.

The industry makes its profits by providing
administrative services. The government outsources the administrative services
to the healthcare insurance industry.

The profit generated in both the private sector and
the government sector is far from transparent.

The healthcare industry’s new scheme converts defined
benefit coverage to defined contribution coverage for healthcare benefits.

In recent months we have seen large corporations
switch their employee healthcare benefits to defined contribution programs.

A partial list of companies includes Walgreens, Home
Depot, Sears, Trader Joes, Xerox and IBM retirees.

Rather than provide a healthcare insurance coverage
benefit through the corporation, the corporation is providing employees with a
defined contribution each year. The employees can then buy their insurance
through their employer’s contracted Private Health Insurance Exchange.

The Private Health Insurance Exchanges are provided
to the corporations by the healthcare insurance industry. There will be a menu
of insurance plans and premium levels employees eligible for coverage can
choose from.

The principals of healthcare coverage include all of
the basic requirements of Obamacare’s Health Insurance Exchanges. Employees
having a preexisting illness must be accepted. However, premiums might be
higher for patients with pre-existing conditions.

The defined contribution amount has not been defined.
It could be a couple of hundred dollars a year to a couple of thousand dollars
a year. In any event it does not sound as if it will be enough to cover the
cost of the healthcare insurance premium.

There will be high deductible plans with patients not
covered for the deductibles and co-pays.

If an employee doesn’t like what he buy in the
companies Private Insurance Exchange, he can always sign up for Obamacare’s
Health Insurance Exchange.

It sounds great for the employer because the employer
can predict costs. It is wonderful for the healthcare insurance industry.

It sounds terrible for the consumer.

It sounds both good and bad for the government. It
depends on how one looks at it.

The Obama administration will have more people sign
up for Obamacare’s Health Insurance Exchanges. The result will be greater
control over the healthcare system. I believe this is the reason the Obama administration has not opposed the Private Health Insurance Exchanges.

However, the consumers signing up for Obamacare Health Insurance Exchanges will be the sickest
consumers. These consumers will use the system more than average.

This will result in an increase in the deficit and
unsustainability of Obamacare. The only way out is to increase premiums and
taxes.

This is called a “redistribution of wealth” because
people making up to $40,000 per year do not pay taxes. If the tax increases are
means tested it will increase the amount of wealth that is redistributed will
increase.

The increase in taxes will decrease economic growth.

At the present time Obamacare’s Healthcare insurance
Exchanges do not have verification software. The system is vulnerable to fraud
and abuse even if it could work.

America is just becoming aware of the fraud and abuse
in the food stamp entitlement program. The food stamp entitlement has double. The
government has not fixed the food stamp program.

It is likely the same thing will happen with the government
run Health Insurance Exchanges. It will drive the federal deficit even higher.

Even though the Private Health Exchanges shift financial
responsibility to the consumer to pay for their own insurance it does not provide
financial incentive for patients to become responsible for their health.

It does not contain educational programs to help
patients deal with their chronic diseases. It does not teach consumers to be
responsible for their health and healthcare dollars.

Obamacare does not provide these incentives either.

The only plan that does is my Ideal Medical Saving
Accounts with employers providing support while shifting responsibility to
consumers by providing incentives for patients to lower the cost of their care.

The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Permalink:

Significance Of IBM Retiree Decision

Stanley
Feld M.D.,FACP,MACE

 IBM’s dropping of retirees’ healthcare plans will be the cause of a
continuing avalanche of companies dropping healthcare insurance for its non-retired
employees
.  These companies are doing it
in two ways. They are decreasing work hours from 40 to 30 hours per week. They
are hiring part time employees. The are also outsourcing work to avoid paying
an “Obamacare penalty.”

Companies are contracting with “Private Health Exchanges” to service the
rest of their employees
. The companies provide a stipend for healthcare
coverage and send employees to the “Private Health Exchange” to buy coverage.
If employees cannot afford the coverage, employees would be able to buy
insurance from the government health insurance exchange.

 

In February 2011 I wrote about the McKinsey study that estimated the
percent of employers that would stop providing healthcare insurance for their
employees in 2014.

None of the Obamacare fans wanted to believe this study.

Senator John Kerry and Representative Barney Frank said a public option was
essential in order for Obamacare to work.

President Obama told them not to worry. Obamacare will work without a
public option.

I called Obamacare’s health insurance exchanges essentially Obamacare’s Public
Option. Consumers will be forced into the health insurance exchanges in 2014.

The Congressional Budget Office provides congress estimates of the effects
of legislation. The CBO is not required to think.

 The CBO crunches numbers provided
to it by the administration. The administration has been less than candid with
everyone including the American public

The
Congressional Budget Office estimated that only 7 percent of employees
currently covered by employer-sponsored insurance (ESI) will have to switch to
government subsidized-exchange policies (Public Option) in 2014.”

The McKinsey study concluded; Feb 2011

 

  • Overall, 30 percent of employers will definitely
    or probably stop offering ESI in the years after 2014.
  • Many
    Human Resources officers and CFOs do not know the implications of Obama care.
  • Among employers having a high understanding of
    President Obama’s Healthcare Reform Act more than 50% will stop offering
    employee healthcare benefit and more than 60% will make some kind of change.
  • At least 30 percent of employers feel they would
    gain economically from dropping coverage and paying the penalty. They would
    even gain if they increase their employees’ salary or other benefits.
  •  The
    insurance coverage is in excess of $15,000 per year per employee. The
    government penalty is $2,000 per employee.
  • The
    difference in cost will force employers to drop ESI and force employees into
    the Public Option.  This was President Obama’s plan all along.
  • The survey also showed that more than 85 percent
    of employees would remain at their jobs even if their employer stopped offering
    ESI.
  • Sixty (60) percent of employees would expect an
    increase in compensation from their employers
  • Who
    are these rules in favor of? They are not in favor of the employee.”

 

“Health care reform fundamentally alters the
social contract inherent in employer-sponsored medical benefits and how
employees value health insurance as a form of compensation.”

 “Obamacare” guarantees the right to health
insurance regardless of an individual’s medical status or ability to pay. In
doing so, it minimizes the moral obligation employers may feel to cover the
sickest employees, who would otherwise be denied coverage in today’s individual
health insurance market.

The logical result is healthcare insurance
premiums would increase for the individual and benefits would decrease to keep
the premium cost down.

In 2014, people who are not offered affordable
health insurance coverage by their employers will receive income-indexed
premium and out-of-pocket cost-sharing subsidies from the government through public
health insurance exchanges.

The highest subsidies will be offered to the
lowest-income workers. It enables these low paid workers to obtain coverage
they could not afford in today’s individual healthcare insurance market.

It will force people into the dysfunctional
individual insurance market under public supervision of public health insurance
exchange.

The government will pay the subsidies for the resulting
increased premiums that will result from expanded coverage in this “Public
Option.”
The government would then pass the increased premium cost on to the
taxpayer on a means tested basis and with higher taxes.

This is what Don Berwick and President Obama meant by
redistributing wealth.
 

The next step is government’s complete control of
a single party healthcare system. 

Employers will no longer be able to offer better
healthcare insurance benefits to their highly compensated executives either.
Companies will be forced to discontinue employee healthcare coverage. We see
that happening in the Fall of 2013.

The penalty is set low to further encourage
companies to discontinue coverage. President Obama’s goal is to have most people
in the “Public Option.”


This will lead to government control of the
healthcare system and all the inefficiencies that will result. These
inefficiencies will increase the cost of care and result in a decrease in
access to care as well as rationing of care.

 State insurance exchanges will be paid for
by the states with a federal subsidy. These exchanges will offer individual and
family policies of set benefit levels (bronze, silver, gold, and platinum) from
a variety of insurance companies.

The effect on the federal deficit will be much
greater than the original CBO’s estimated. The number of people who will loss
their company insurance was estimated by the CBO at 10 million, or about 7
percent of employees, currently covered by ESI.

Seventy (70) million people was McKinsey’s estimate in 2011.

A July study by Craig Garthwaite of Northwestern
University’s Kellogg School of Management predicts as many as 940,000. That
number is an estimate of how many adults without children are working because
of what the researchers call “employment lock.”

This
increased number of participants will add to the federal deficit. The increased
federal deficit will result in higher taxes for everyone, including the middle
class.

“The taxpayers are going to get
hammered,” says Douglas Holtz-Eakin, a former Congressional Budget Office
director who is now president of American Action Forum,
a Washington-based
advocacy group that opposes the health law. “It’s going to be extraordinarily
expensive.”

President Obama wins his ideological goal.
Consumers will have less control over their own healthcare decisions and
choices. 

The healthcare insurance industry will gain more
control over pricing. This will increase profits because they will administer
government health insurance exchange services. President Obama will continue to
outsource the administrative services to the healthcare insurance industry.

 The losers will be consumers and
physicians.

The impending results are all totally
predictable. Obamacare fans refuse to listen.

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Permalink:

Who Losses? Who Wins?

Stanley Feld M.D.,FACP,MACE

IBM wins because it wants out of
providing healthcare insurance for retirees.

The government wins because it gains more
control over the healthcare system.

It is as if big business is playing right
into the Obama administration’s hands.

 The healthcare insurance industry wins because
it gets more administrative services fees from the government without risk.

The brokers for the healthcare insurance
industry win because they will take more commissions from individual consumers than
they would from an institutional company.

IBM retirees
lose.

 Most retirees will go on Medicare Part B or
Medicare Advantage. President Obama is planning to eliminate Medicare
Advantage.

Medicare Part B is means tested so the
more income that is generated from any source by a retiree the higher the premium
paid to the government for Medicare Part B.

The Medicare premiums are paid with pre
tax dollars from retirees Social Security payment. The supplemental insurance
(Medicare Part F) covering deductibles and co-pays are not tax deductible.

Medicare is increasing the deductible and
co-pay requirement in 2014. Therefore the non tax-deductible supplemental
premiums will increase in price.

The premiums of both Medicare and
Medicare supplements for services and drugs can amount to more that $16,000 a
year for a husband and wife calculated in terms of after tax dollars..

Large companies provided the healthcare
coverage as a benefit to retirees tax-free.

IBM has been trying to get out of
providing healthcare coverage for employees since 1999. Obamacare has provided
an excuse for IBM to discontinue its coverage for retirees.

General Electric (GE) made the same
announcement a while ago. Time Warner made its announcement right after IBM.

Companies who have changed their
healthcare coverage for retirees include DuPont, Caterpillar, Sears and Darden
Restaurants.

Many more companies are about to joint in.

It is obvious this was coming as a result
of Obamacare.

The move
disregards the social contract made with employees when employees were first
hired.

International Business
Machines
 Corp.
(IBM) is going to discontinue its company-sponsored health plan for about
110,000 retired employees.

 IBM plans to provide retirees a fixed payment.
The payment will be used for retirees to buy their own health care coverage
through a “private” health insurance exchange.

 Once retirees are eligible for Medicare at age
65, IBM would not be responsible for managing these retirees’ healthcare
benefits.

IBM said,
“the growing cost of care makes its current plan unsustainable without big
premium increases.”

IBM told retirees, “that its current retiree coverage will end
for Medicare-eligible retirees after Dec. 31, 2013.”

IBM is shifting the responsibility to the
retirees for buying their own coverage through “Private Health insurance
Exchanges.”

It sounds like a costly rip off to the retiree.
IBM is providing a subsidy for now. Then IBM will discontinue the subsidy.

One Private Health Insurance Exchange
executive said.

"Companies
were turning off plans," he said. "We've given them a proven way to
subsidize. At some point every single retiree will join a Medicare
exchange."

Some union-affiliated groups and retirees
weren't convinced. Lee Conrad, national coordinator for the IBM Global Union
Alliance, said

The
worker group
sees this as
just another take-away of retiree and employee benefits."

Donald
Parry, an engineer who retired in 1992 after nearly 32 years at IBM, said he is
concerned he may have to pay more. "The worst thing right now is not
knowing what's going on,"

At the moment the cost of the government
providing Medicare coverage is unsustainable according to the CBO. This is
despite Medicare premiums being means tested and the escalation of Medicare
premiums.

Despite the increase in premiums Medicare
will run out of funds by 2024.

The choices are higher means tested
Medicare premiums (redistribution of wealth), decreased access to care or
rationing of care. I believe it will be all of the above. The burden of this
change will fall on the taxpaying consumers’ shoulders.

As big businesses drop coverage for
retirees, the Medicare roles will increase and the government will run out of
fund prior to 2024.

Excessive costs, commissions, and bureaucratic
inefficiencies part of any government program.

The Obamacare bureaucracies seem to have
no concern for the inefficiencies and increase in deficit spending.

It is as if they are saying, “Bring it on.”
All the government wants is control of the healthcare system.

The result will not be affordable care.
It will be unaffordable care that is rationed with limited access to care.

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Permalink:

You Cannot See the Pattern Unless You Look

 Stanley Feld M.D.,FACP,MACE

Let us assume President Obama wants to destroy the
healthcare system. I have presented steps taken by the Obama administration to
accomplish that goal.

It is possible that this assumption is correct.

It looks as if President Obama uses the same patterns
in the actions he takes to govern.

He promises a group something that group wants to
hear. Then he disregards the promise. He acts to further his political agenda.

This methodology is not the methodology of
leadership, nor does it promote trust.

However, he
has used the same methodology in finance, in the environment, in immigration,
in defense, in energy, in racial relations, and most of all in Medicine.

He first captures his base with ideas that promote
their vested interest. He then undermines his base’s vested interests replacing
these vested interests with his own political agenda.

The
next step is to shift the blame to someone else.
His best victim has been the Republican Party. It
is incomprehensible to me that the Republican Party sits back and takes it. I
guess it is politically correct to do so. However, it does not win elections.

If an element of his base makes a big enough stink,
he provides an executive waiver for the issue.

Some of the patterns are hard to see. The
traditional media under reports them.

Other actions using the same pattern are not seen
because they are not examined carefully. They are only seen after they have a
direct affect on an individual’s or group’s vested interest where they have
been betrayed. This leads to mistrust.

President Obama then proceeds to become the judge.
As judge he plays one group against the other.

He now has angered adjunct university and colleges
teachers. This group has been a steady ally.

“Adjunct faculty at a local college
were asked to sign a 
petition to the White House to "explore
options to prevent colleges/universities from cutting adjunct and contingent
faculty hours to circumvent [the] PPACA," better known as 
ObamaCare

This is in
response to the massive assault on the livelihood of adjunct faculty who
now face devastating salary cuts as a direct result of Obamacare.

University and college
professors have universally been President Obama fans. The tide is shifting for
President Obama.

He has blamed the
shifting tide on the Republicans.

In medicine President
Obama’s budget cuts have already resulted in rationing of care and a decrease
in access to care. Cancer Clinics across the
United States are turning away thousands of Medicare cancer patients.

The cost of the
medication to the cancer clinics is higher than   government reimbursement for the medication.
 

"Patients at these clinics would need to
seek treatment elsewhere, such as at hospitals that might not have the capacity
to accommodate them
."    

The reduced Medicare
funding already has taken place April 1,2013.

Cancer treatment in
hospitals, in many cases, are 2 to 4 times higher than treatment in outpatient
cancer clinics just as surgery done in an outpatient surgery clinic is one half
to one fifth the cost of surgery in a hospital.

Yet the hospital systems
continue to receive adequate fees.

 The Community Oncology Alliance, which
advocates for hundreds of outpatient cancer clinics nationwide has sent letters
to legislators urging them to exempt cancer drugs from the seques
ter for outpatient cancer
treatment to make less expensive outpatient cancer treatment available to
patients.

 The hypocrisy of President Obama, who early on
claimed that the passage of the American Recovery and Reinvestment Act (ARRA)
would "launch a new effort to conquer a disease that has touched the life
of nearly every American
.

 Thus, it
is perplexing that the cuts outlined by CMS will negatively impact cancer
patients, making advances in cancer care more difficult to deliv
er."

Seniors could not know
about this until they develop cancer and experience the cost. It too has been
under reported.

President Obama who introduced the idea of sequestration, in his
negotiations for a continuing resolution last year, has refused to take
responsibility for it.

Republicans attempted to
make the sequester cuts "less reckless,” such as severe military cuts,
closing the White House to visitors and all the other restrictions President
Obama introduced for this two per cent cut in the budget.

Harry Reid said the
Republican’s proposed cuts were dead on arrival in the Senate.

 “Thus,
Obama's duplicity emerged, as he sought to blame the Republicans for
sequestration even though he originated it.”

There have been many instances where the
Obama administration has divided Americans into class warfare. The class
warfare has occurred in immigration reform, cancer victims vs. non cancer victims,
union workers vs. non union workers, right to work states, college teachers and
the administrators, black vs. whites and rich vs. poor for example.

The traditional media
fill the airwaves with these distractions. The real issues are diverted by the
distractions. President Obama plays “Wag the Dog” constantly.

Some examples of real
issues would be how to solve the problem of government inefficiency, waste,
fraud and abuse. It is not to create more agencies, rules and regulations and
impediments on business development to destroy job growth?

Why beat up on doctors
and patients when the real problems are insurance companies, hospitals and tort
reform despite the administration and its advisors’ denials.

Why is he giving out preferential
waivers? America should be outraged to have Obamacare passed into law by a
Democratic Party, which then in turn receives a waiver from President Obama by
executive order to be exempt from Obamacare.

The media should be
outraged. Instead the media has given congress and the President a pass.   

“Though I value my First Amendment right to
petition the government for change, we need far more puissant action.”  

We need to demand a total eradication of Obamacare.
 And it needs to be done as a united front.  Otherwise, we actually
play right into President Obama's overarching aims of 
divide
and conquer
 by
duplicity and coercion.” 

President Obama wants to
avoid personal blame for the expensive, unwieldy health care law. He will
probably figure out a way to blame Republicans for its failure.

The majority of the
people are against the healthcare law. Physicians know it will make the
healthcare systems problems worse and more expensive.  Yet the President ignores all of these voices
while he is spending massive amounts of money on marginally added value medical
projects.

Some believe the tactics
used by the used by the President to pass the healthcare law started all the
problems. In reality Obamacare is a bad law that will be impossible to
implement.

President Obama always uses
the same pattern to avoid personal blame. (“I
did not draw a Red Line, the international community did
”). He always
diverts our attention from the real problems. He tells lies or half-truths
about issues, and divides and conquers to create class warfare.

He uses the same moves
over and over again. If America doesn’t start looking, Americans will not see
the destruction to most of our institutions.

The so-called unintended
consequences in every area might not be so unintended.

President Obama is
accomplishing exactly what he wants to accomplish. It looks to me as if he
wants total government control over our society. Many institutions have begun to
crumble before he reaches his goal.

The disregard for our
constitution is one vivid example. 

What massive government
intervention means to me is that it is creating more misery, resentment and
anger among all the diverse groups in American society. 

Most Americans believed
President Obama when he said it is time for a change. It was time for a change.

 Since he did not define the change he was seeking,
we all assumed it would be for the better.

Our assumption was
wrong. 

It is time we start
looking and seeing.

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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Permalink:

Employer Mandate Confusion

Stanley Feld M.D.,FACP,MACE

Confusion
about any rules or regulations is not good for business, bad for job growth and
bad for the economy.  Large and small
enterprises become cautious and are afraid to spend money on expansion.
Expansion might increase a tax liability without increasing production.

A
few months ago there was a dispute about how many new rules and regulations
have been released by the Obama administration to implement Obamacare.

“Implementation has
also become a bureaucratic nightmare, with some 159 new government agencies,
boards and programs busily enforcing the roughly 20,000 pages of rules and
regulations already associated with
this law.”

Sen.
Mitch McConnell (R-Ky.), on the third anniversary of the law’s passage,
March 22, 2013

The process the McConnell folks used is fairly
simple. They went to the Web site for the Federal Register and
searched for “Affordable Care Act,” the official name for the health-care law.
That turned up 897 documents.

On the Web site, there’s a button that will download
the documents to an Excel spreadsheet (CVS/excel). Then you use the sum feature
on Excel to add up the pages and presto, you end with 20,202 pages. These were
then printed out and duly stacked in a pile.


Jpg height of rules

Mitch
McConnell might be way off in his calculation. The rules and regulations are
reported in the small print Federal Register. It is possible as many as 40,000
rules and regulations have been published. All of the rules and regulations for
Obamacare will not have been written by January 1, 2014. 

2nd Mcconnel jep

The
cost of the writing of the rules and regulations, the cost of the formation of
new agencies formation, and the cost of implementation have not been discussed.

Rules
and regulations tend to be open to misinterpretation, conflict, lawsuits and
lack of enforcement.

An
increase in rules and regulations leads to more confusion and conflict. Some
rules contradict other rules. This results in greater inefficiency and more not
less costs.

Our
healthcare system can ill afford more non added value expenses.

The
IRS is going to be in control of enforcing the “Employer Manadate.” Many of the
rules and regulations have been written. However, many of the IRS’s rules and
regulations are not clear.

I
have written about employers decreasing the number of hours employees are
permitted to work in order to avoid the penalty “tax”
of not providing healthcare insurance for full time workers.

Seventy
seven percent of the “job growth” in the past few months has been part time
employment growth.
The Obama administration has consistently denied this is
true despite the Bureau of Labor statistic reports.

What
is part time employment? It has been defined in Obamacare as an employee
working less than 30 hours a week.

“Just to understand how the penalty applies practically requires
flow chart. But as the Internal
Revenue Service has tried to 
interpret the mandate, the
agency and the businesses and employees affected by the mandate are discovering
that it is even more challenging than it reads.”

Answers to questions by
the I.R.S. have generated even more questions. Confusion mounts as more rules
and regulations are generated.

A big question has
surfaced. How does an employer determine whether employees whose hours fluctuate
should be offered insurance or pay a penalty “tax”?

Obamacare sets that
threshold at 30 hours per week. Many companies schedule some of their work
force on variable hours. An employee might work 25 hours one week and 33 hours
another week. 

In its preliminary
rules
, released late last year,
the I.R.S. devised an approach to the problem of the variable-hour employee
that it calls the “look-back measurement method.”

The I.R.S regulations
would allow an employer to choose a measurement period of three months to a
year in which to average the employee’s weekly hours.

The measurement period
would then be followed by a stability period of a year for a total of two
years.

Is anyone following this?

If an employee’s schedule
averaged out to full time (over 30 hours a week) during the measurement period,
then the company would be obliged to offer health insurance in the stability
period or pay a penalty.

The new measurement period
would begin immediately after the old one ended. The process of measurement and
stability periods would begin again.

 If the company anticipates that a new hire
will work full-time (over 30 hours a week), it must offer insurance by the
start of the fourth month on the job.

 Why not offer insurance immediately on hiring
the person? Is this not confusing?

 To make things more confusing, what happens if
an employee goes from full time to part-time?
The rules were unclear. “Do you get to keep your coverage?”

The I.R.S. took the
position that the employee would keep the coverage through the end of the
stability period.

If it turned out that the
worker still managed to average a full-time schedule, which would be possible,
if he or she made the switch late in the period. The company would have to
offer insurance in the next stability period as well or face the penalty.

A full-time employee who was
switched to part-time in August, before open enrollment in October, would be
entitled to an additional 16 months of insurance coverage.

Employers have figured out
they should fire the employee and avoid the penalty or the insurance coverage.
This is not good for job creation or the economy.

The law and its rules are
encouraging these actions.

The rule also penalizes an
employee who is switched from part time to full time employment. The employee
has to wait at least a year before the employer must offer that employee
insurance coverage rather than by the fourth month.

Measurement and stability
periods should be used to infer a status of variable-hour employees only,” 

“Once an employee is no longer a variable-hour employee and is
in a full-time position, he or she should be offered coverage within, at most,
four calendar months.”

Is all this confusing? You
bet. Just visualize the cost of the mountain of paper work and reports.

Is all of this cost
effective? No!

This represents a tiny
fraction of the rules and regulations by the Affordable Care Act (Obamacare) that
are causing confusion.

The more confused one gets
the less one wants to participation.

The only option left is a government
take over of the healthcare system. It wouldn’t be bad except for the fact that
America cannot afford it, and the government could not implement it without a
terrible cost to society.

It would result in
rationing of care and a decrease in access to care. The only solution is for
consumers to be responsible for their own care and control their own healthcare
dollars.

 The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone

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