Recs

3

The Most Important Savings Obamacare Will Provide

Obamacare has been one of the most controversial laws passed in decades, with sharp debate over whether the law's reform provisions will actually result in cost savings for the American population overall. But most analysts are ignoring an important component of savings for millions of previously uninsured Americans.

In the following video, Fool contributor Dan Caplinger notes how most of the attention has centered on the cost of buying insurance policies under Obamacare. Yet as Dan points out, you also have to consider the savings that having health insurance brings in comparison to having to pay full price for health care services. By giving millions of Americans access to the favorable prices for health care services that insurance companies negotiate with health care providers, Obamacare could produce more overall savings than many expect.

Obamacare will undoubtedly have far-reaching effects. The Motley Fool's new free report "Everything You Need to Know About Obamacare" lets you know how your health insurance, your taxes, and your portfolio will be affected. Click here to read more. 


Read/Post Comments (9) | Recommend This Article (3)

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 June 07, 2013, at 3:27 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.

    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.

    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.

    Just refuse obamacare..REFUSE..If only a mere 20% of the over 300 million population of the USA refuse Obamacare the governmnet would be overwhelmed to even think they could lock every citizen up 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 June 07, 2013, at 4:03 PM, LadyMantle wrote:

    Not to mention that the latest bit of IRS tax legislation in the works pertaining to employers who provide healthcare insurance to their employees is that they will no longer be able to write off medical insurance costs as a tax reduction in the very near future. That really puts the cherry on top doesn't it?

  • Report this Comment On June 07, 2013, at 4:15 PM, wolfhounds wrote:

    I'd like to know the source of the lost deduction for medical expenses rom "the latest bit of IRS tax legislation". The IRS does not write or propose legislation. In addition, the IRS only writes regulations when Treasury does not and then under the guidelines specified in the Joint Committee legislation. So, which is it?

  • Report this Comment On June 07, 2013, at 4:43 PM, MoJoOh wrote:

    Anyone without insurance or who is going out of network can work with the Doctor or Hospital to get a reduced rate with a simple conversation. I have done it many times...

  • Report this Comment On June 07, 2013, at 4:45 PM, NMGNO wrote:

    I get his point.. but think it's moot. I own a business, and just went through the renewal process with the rates driven by Obamacare.. There is no savings at all, and the inefficiencies that this monstrosity is introducing into the medical system is beyond description.

    The goal of Obamacare is single payer, socialized medicine. Nothing less. We have the words of President Obama himself in that regard.

    I'm fine with finding silver linings in clouds.. but there is no long term benefit to Obamacare, unless you think long lines, doctor shortages, and increased taxes are a benefit. I don't.

  • Report this Comment On June 07, 2013, at 6:20 PM, tonybruscia wrote:

    It amazes me how so many Americans have strong opinions about Obamacare, with so little knowledge and/or expertise on the realities. I have been in the business of employees benefits for 24 years, and I can tell you that in many cases, people with insurance are paying more for the service or medicine than people without. To suggest that Obamacare will bring important savings is naive and/or just politically motivated. What Obamacare really does, is guarantee access to coverage for all, with significant savings to those with lower incomes, because it shifts the burden of the cost to the middle and upper-class. It also jeopardizes many employees' coverage because employers will find creative ways to circumvent the intent of the law to keep their costs down. It also raises the cost of coverage for young adults (20s and 30s) because they will be subsidizing the cost for older adults (50s and 60s). It creates tremendous amount of additional work for some employers, and threatens many viable business. In short, it accomplishes some good, some bad, and a ton of confusion and misinformation.

  • Report this Comment On June 07, 2013, at 10:51 PM, Veritas177 wrote:

    The fundamnetal miss here is that we have not changed the operating cost for physicians. If they lose income because a greater number of patients are privy to carrier discounts, they will have to make that up by raising the negotiated rate with the carrier. If the cost to operate the Doctor's office does not change, the rates will always even out in the end.

  • Report this Comment On June 08, 2013, at 12:51 AM, Dadw5boys wrote:

    I know several from the last job I worked will be mad. All the mamagers had free health insruance they raised the cost on the hourly employees to give us free insurance.

    I never felt right working there glad I went out on my own.

    Good News though in my state only 30,000 kids dropped into poverty this year as wages drop and jobs are hard to find. Maybe the old people will keep working 10 more years and these kids can go straight from Medicaid to welfare and public housing or homeless for the men. They don't help single men out around here very much.

  • Report this Comment On June 08, 2013, at 5:45 AM, mwlovin wrote:

    How could any one classify a it as a "savings" for the uninsured that were already paying zero.

    Ridiculous article based on liberal white house propaganda.

    We already have "free-clinics"...low income health centers, hospitals are mandated NOT you deny care based on ability to pay.

    All this is going to do is provide free, prozac (as a guise for preventive mental health care) , and free underage abortions.

    Obama...when you are rotting in jail, you will see TRUE socialized health-care..

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: 2477941, ~/Articles/ArticleHandler.aspx, 10/25/2014 7:59:56 AM

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...

Dan Caplinger
TMFGalagan

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.

Today's Market

updated 10 hours ago Sponsored by:
DOW 16,805.41 127.51 0.76%
S&P 500 1,964.58 13.76 0.71%
NASD 4,483.72 30.92 0.69%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2014 4:00 PM
AET $78.69 Down -0.06 -0.08%
Aetna, Inc. CAPS Rating: ****
CI $92.83 Up +0.56 +0.61%
Cigna Corporation CAPS Rating: ****
CYH $56.59 Up +0.15 +0.27%
Community Health S… CAPS Rating: ***
HCA $72.07 Up +0.71 +0.99%
HCA Holdings, Inc. CAPS Rating: ***
UNH $91.64 Up +0.98 +1.08%
UnitedHealth Group CAPS Rating: ****

Advertisement