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Obamacare: 3 Things You Should Know

Obamacare is one of the most controversial laws ever passed. But dealing with potential health-care issues in your financial plan is extremely challenging, and with more provisions of the Affordable Care Act slated to take effect soon, you need to understand the impact of health-care reform on your personal finances.

In the following video, Fool contributor and personal-finance expert Dan Caplinger looks at Obamacare from three perspectives: the health-care consumer, the taxpayer, and the investor. Dan explains what Obamacare requires on the insurance front and then goes through the tax increases that have taken effect at the beginning of 2013 that will in part go toward funding it and other government spending. Finally, Dan closes with a look at the winners and losers on the investing front.

One thing is certain: Obamacare will undoubtedly have far-reaching effects. The Motley Fool's new free report "Everything You Need to Know About Obamacare" goes into more detail on how your health insurance, your taxes, and your portfolio will be affected. Click here to read more.



Read/Post Comments (8) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On May 25, 2013, at 10:36 AM, sabebrush6 wrote:

    The first thing you need to know about Obmacare is, you should be very, very scared.

  • Report this Comment On May 25, 2013, at 12:12 PM, pmorazzini wrote:

    Health Insurance used to be part of an Employers Benefit package. Obamacare=more incentive not to go to work for a living.

  • Report this Comment On May 25, 2013, at 1:19 PM, mfpinwa wrote:

    The reason healthcare costs are so high is because of insurance. This is because of two reasons: 1. insurance creates vast pools of money. Think about how much money is created with every employed person is sending in $1000/month. 2. Consumers are not aware of costs since they are not paying out of pocket thus they are not encouraged to consider costs before choosing expensive tests.

    Bottom line: insurance is the problem and the new health care law expands insurance. Thus this will only make the problem worse.

    Secondly, requiring everyone to purchase insurance cannot be enforced without spending a great deal of money on enforcement.

    The law needs to be revoked and they need to look at just expanding the VA system.

  • Report this Comment On May 25, 2013, at 4:59 PM, doco177 wrote:

    1. Millions are and will lose 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."

    Meanwhile, 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. Here's an unsettling example already being practiced.

    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.

    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.

    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 above all lying are integral to the way that this country is being run.

  • Report this Comment On May 25, 2013, at 10:03 PM, healthyinMN wrote:

    Insurance companies currently make billions in profit each year. They control price, what care they will pay for, what meds they will pay for.

    Price is the reason we have so many Americans getting free care under Medical Assistance.

    The ACA expects insurance companies to sell insurance to individuals at the same price they sell to Employers.

    This will eat into their billions, so you will see some insurance companies choosing not to participate.

    Asking each person to buy insurance in the Exchanges is fair. It's better to SUPPLEMENT those who cannot afford it, versus paying the full bill with our tax dollars.

  • Report this Comment On May 25, 2013, at 10:46 PM, bigmomma42 wrote:

    we are becoming a communist country government is taking away our freedom of choice and our rights obama is the downfall of our country

  • Report this Comment On May 26, 2013, at 2:49 AM, TerryFlowers wrote:

    Things could (and should) be so much simpler. If only Obama had pushed for "single-payer" as he campaigned about. HR 676 (research if if you are not familure with it) would provide healthcare financing for every American AND at a lower per capita cost than we are currently paying.

    HR 676 would provide healthcare freedom, justice and equality ~

  • Report this Comment On May 26, 2013, at 8:32 AM, globeflyer wrote:

    I had dinner recently with a orthopedic surgeon and this is a basic example of what we can expect re: Obamacare. He has surgeon friends in Canada who told him that to have a hip replaced there one can expect to wait 3-4 years. The same wait in the States is usually 6 months. I wish no one ill will, but some of these same people who supported it may find that same wait painful and tiresome.

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Dan Caplinger
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Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

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