New York Gets a Huge Obamacare Shock

For all of the gnashing of teeth over a presumed insurance cost spike once the Affordable Care Act's individual mandate goes into effect, we're seeing a much tamer picture, including a dramatic reduction in costs in some states. News just came out that New York could see prices on its insurance exchanges plunge as much as 50%!

In this video, health-care analyst David Williamson discusses how this surprising turn of events is possible, why other states shouldn't expect similar results to New York, and why insurers such as UnitedHealth Group are posting great quarters now while still sounding alarms for 2014.

Still in the dark about how Obamacare might affect you and your portfolio? Don't worry -- you're not alone. To help prepare investors for the massive changes coming to the American health care system, The Motley Fool created a special free report that makes this complex topic easily understandable. Download "Everything You Need to Know About Obamacare" and discover how the law may affect your taxes, health insurance, and investments. Click here for your free copy today.

Follow David on Twitter: @MotleyDavid.


Read/Post Comments (12) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 21, 2013, at 3:42 PM, VRSEFgold wrote:

    Anyone with common sense knows this article is B.S.

  • Report this Comment On July 21, 2013, at 3:58 PM, jimmy1vilaine wrote:

    The crickets are chirping for the GOP response that is not here! What is their plan??? Wait a minute, they have none!

  • Report this Comment On July 21, 2013, at 4:01 PM, RJFL99 wrote:

    Rates will go down for individuals, sure- the rest of us will be subsidizing them through our FORCED contributions! Articles like this are just propoganda.

  • Report this Comment On July 21, 2013, at 4:11 PM, eddie252000 wrote:

    Who cares if you only pay half as much if the deductable is $5000 or more? What else do the Democrats have in store? More deception and lies, that's what!

  • Report this Comment On July 21, 2013, at 4:16 PM, doco177 wrote:

    1. Millions are losing the insurance Obama promised they could keep. Because ObamaCare forces employers to offer expensive Cadillac plans but also offers the option of paying a fine for not providing health insurance that can be cheaper than providing it, between seven and twenty million Americans are likely to lose their health insurance coverage according to the Congressional Budget Office. The original estimate was closer to four million.

    2. The cost of healthcare premiums is about to further skyrocket. Premium costs have already exploded, but that is a slow-motion explosion. In the near future, we could see costs double or worse. Naturally, these costs will hit an already burdened middle class hardest.

    3. Lost jobs. Lost jobs.

    The Federal Reserve's March beige book on economic activity noted that businesses "cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff."

    Human resources consulting firm Adecco found that half of the small businesses it surveyed in January either plan to cut their workforce, not hire new workers, or shift to part-time or temporary help because of ObamaCare.

    4. Potential doctor shortages that will mean rationing: The healthcare industry is already a bureaucratic quagmire. ObamaCare is about to add steroids. As the profession becomes tyrannized by government, the talented people currently practicing medicine plan to get out sooner than expected. Who knows how many will choose not to get in. Doctor shortages are what lead to the nightmare known as rationed care.

    5. Somewhere around $800 billion in tax increases will hit America's middle class. This added burden will not only further oppress a middle class already reeling from a drop in wages over the last few years, but could damage the overall economy.

    6. Inflation, the cruelest tax on the poor. When businesses get socked with added costs brought about by higher taxes and burdensome government mandates, they pass those cost along to the consumer in the form of higher prices.

    7. Added bureaucracy. Even those Obama lapdogs over at the Washington Post's Wonk Blog are admitting that applying for health care is about to get more burdensome than the byzantine paperwork involved in buying a home.

    8. To cut costs or to avoid having to provide insurance, workers on the economic margins are already losing hours, which means a lower paycheck. There are a million sad stories in ObamaVille; here are just a few of them.

    9. ObamaCare is projected to add $6.2 TRILLION to a deficit the GAO has already declared "unsustainable." That's "trillion" with a "t".

    10. More taxes than currently estimated are likely to hit because of situations like this one.

    11.Muslims, Amish, Native Americans, Congress are exempt from mandate and penalties under Obamacare that the rest of us have to pay.

    The govt becoming more involved in health care is the reason the costs have increased. So Govt creates a crisis, then provides a solution that comes at the expense of liberty and freedom, costs trillions, and by most accounts won't solve the problem but in fact make it far worse.Corruption, incompetence, disregard of the Constitution, and lying are integral to the way that this country is being run.

    Three years ago, Obama, Democrats, and his media lied to us about cutting the cost of health care, being able to keep our insurance, and not taxing the middle class.

    Today, those lies and what ObamaCare is and will do to the working and middle class are the biggest untold story in America.

    Boycott and refuse Obamacare...If only a mere 20% of the over 300 million population of the USA boycott Obamacare the government would be overwhelmed to even think they could penalize or mandate every citizen that refused to participate in the most corrupt and unlawful ways which it was passed that circumvented the constitution of the United States.

  • Report this Comment On July 21, 2013, at 4:16 PM, doco177 wrote:

    1. Millions are losing the insurance Obama promised they could keep. Because ObamaCare forces employers to offer expensive Cadillac plans but also offers the option of paying a fine for not providing health insurance that can be cheaper than providing it, between seven and twenty million Americans are likely to lose their health insurance coverage according to the Congressional Budget Office. The original estimate was closer to four million.

    2. The cost of healthcare premiums is about to further skyrocket. Premium costs have already exploded, but that is a slow-motion explosion. In the near future, we could see costs double or worse. Naturally, these costs will hit an already burdened middle class hardest.

    3. Lost jobs. Lost jobs.

    The Federal Reserve's March beige book on economic activity noted that businesses "cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff."

    Human resources consulting firm Adecco found that half of the small businesses it surveyed in January either plan to cut their workforce, not hire new workers, or shift to part-time or temporary help because of ObamaCare.

    4. Potential doctor shortages that will mean rationing: The healthcare industry is already a bureaucratic quagmire. ObamaCare is about to add steroids. As the profession becomes tyrannized by government, the talented people currently practicing medicine plan to get out sooner than expected. Who knows how many will choose not to get in. Doctor shortages are what lead to the nightmare known as rationed care.

    5. Somewhere around $800 billion in tax increases will hit America's middle class. This added burden will not only further oppress a middle class already reeling from a drop in wages over the last few years, but could damage the overall economy.

    6. Inflation, the cruelest tax on the poor. When businesses get socked with added costs brought about by higher taxes and burdensome government mandates, they pass those cost along to the consumer in the form of higher prices.

    7. Added bureaucracy. Even those Obama lapdogs over at the Washington Post's Wonk Blog are admitting that applying for health care is about to get more burdensome than the byzantine paperwork involved in buying a home.

    8. To cut costs or to avoid having to provide insurance, workers on the economic margins are already losing hours, which means a lower paycheck. There are a million sad stories in ObamaVille; here are just a few of them.

    9. ObamaCare is projected to add $6.2 TRILLION to a deficit the GAO has already declared "unsustainable." That's "trillion" with a "t".

    10. More taxes than currently estimated are likely to hit because of situations like this one.

    11.Muslims, Amish, Native Americans, Congress are exempt from mandate and penalties under Obamacare that the rest of us have to pay.

    The govt becoming more involved in health care is the reason the costs have increased. So Govt creates a crisis, then provides a solution that comes at the expense of liberty and freedom, costs trillions, and by most accounts won't solve the problem but in fact make it far worse.Corruption, incompetence, disregard of the Constitution, and lying are integral to the way that this country is being run.

    Three years ago, Obama, Democrats, and his media lied to us about cutting the cost of health care, being able to keep our insurance, and not taxing the middle class.

    Today, those lies and what ObamaCare is and will do to the working and middle class are the biggest untold story in America.

    Boycott and refuse Obamacare...If only a mere 20% of the over 300 million population of the USA boycott Obamacare the government would be overwhelmed to even think they could penalize or mandate every citizen that refused to participate in the most corrupt and unlawful ways which it was passed that circumvented the constitution of the United States.

  • Report this Comment On July 21, 2013, at 4:19 PM, andiconda wrote:

    Republicons have no idea what a good step in the right direction nationalizing health care is except what they are told by Limbaugh and Coulter, Hannity and FOx bimbos.

  • Report this Comment On July 21, 2013, at 4:41 PM, rbrb2 wrote:

    Liar, liar, pants on fire.

  • Report this Comment On July 21, 2013, at 4:48 PM, KPOM wrote:

    NY is an outlier since it is already a "guaranteed issue" state in which almost no insurer was dumb enough to participate in the local exchange, and those who were demanded high premiums in order to meet NY's demands. What's happening now is that since more people are being dumped by their employers into the exchanges, there's a bigger population of chumps (oops, customers) to spread the premiums around. NYS ranks 50th in terms of economic freedom. They don't play by the same economic rules the rest of the country does, because when they run into trouble they can just get easy bailouts from Washington. There's a reason the big bankers are mostly Democrats (think Jamie Dimon and Larry Blankfein).

  • Report this Comment On July 21, 2013, at 5:04 PM, jblanco20 wrote:

    Dave,

    I manage a PE fund that owns a large staffing and PEO company. All their customers are employers from 10-150 employees. The reaction by virtually every employer is what can they do to get away from the mandate. The employers all complain that there younger employees, who elected to not to participate in the employer group policy, are aghast that they have to participate or get an individual policy to subsidize older and unhealthy people.

    Young reporters like you don't have a clue about running a business. The law will be 1) very costly 2) very disruptive to companies and 3) snuff health care innovation because of anticipated lower reimbursements (right, this is the only way the Govt. can reallocate dollars to the uninsured).

    It will cause companies to use 1) more temp labor, 2) offshore jobs (particularly semi-skilled administrative and manufacturing jobs) and 3) motivate investment in technology to displace line workers (basic economics dictates that as the marginal cost of labor increases it will justify the investment in technology to displace labor overtime).

    As investors ACA will be an unmitigated disaster for traditional "old economy" businesses and further hurt unskilled and semi-skilled laborers but move jobs to 'new economy" businesses.

  • Report this Comment On July 21, 2013, at 5:18 PM, newsfool188 wrote:

    Obamacare will be a disaster for workers and employers. This article is not believable, as is most press coverage of Obamacare.

  • Report this Comment On July 22, 2013, at 4:23 AM, misterfrost wrote:

    This should be resisted by everyone with any common sense.

    To be forced to become the customer of any corporation goes against any ideals our forefathers and any freedom loving individual.

    No one not event he fascists in our government should be allowed to force us into buying anything.

    It goes against logic and common sense and to not see how much damage something like this can do must be on purpose.

    What's next force the public to get bank accounts? Credit cards? What other extortion can a government heap on it's citizens if it can do this?

    The Motley Shill seems to have very little to say on the subject it seems..

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2547559, ~/Articles/ArticleHandler.aspx, 11/25/2014 8:56:12 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement