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By Catholic Online (NEWS CONSORTIUM)

10/28/2013 (2 years ago)

Catholic Online (

Obamacare forcing millions to lose existing coverage, notices arriving now with more on the way

Reality is beginning to set in as insurance providers send more cancellation notices to Americans notifying them that because of Obamacare, their insurance will be dropped and they will need to re-enroll in more expensive plans.

Pictured: Obamacare approaching.

Pictured: Obamacare approaching.


By Catholic Online (NEWS CONSORTIUM)

Catholic Online (

10/28/2013 (2 years ago)

Published in Politics & Policy

Keywords: Obamacare, cost, mandate, individual, termination, cancellation, expensive, insurance

LOS ANGELES, CA (Catholic Online) - The vast majority of Americans in the individual insurance market, about 16 million out of a total of 19 million, are losing their health insurance coverage and are being told to re-enroll in more expensive plans to avoid interruption in their coverage.

For these 16 million Americans, Obama's words promising that you could keep your doctor and your coverage if you were happy with, make for a very painful lie.

Most of these people are losing their plans because under Obamacare, their current plans "undercover" them. Obamacare sets a standard of coverage that is intended to cover most all medical needs. Not everyone however, needs this level of care. People who are young and healthy, in particular, have been paying much less for their insurance while accepting a lower quality of care, simply because they don't need it.

However, those budget plans, which do not provide all of the coverage the Obamacare law requires must be cancelled. This means that 16 million Americans will have to upgrade, against their budget and will, to a more expensive Obamacare approved plan. For these Americans, many of them on low or fixed incomes, this is a devastating blow.

For a large number of Americans, the insurance bill will hit hard with many paying hundreds of dollars per month to avoid the increasing fines passed to force people to buy insurance.

Obamacare is intended to be affordable, but does nothing to make healthcare cheaper for consumers, other than to make the poor eligible for Medicare. For the middle class, the healthcare is affordable because its monthly cost can be predicted and therefore budgeted. However, the monthly expense for most people will be the equivalent of adding a car payment to the budget.

In fact, as more Americans enroll in Obamacare plans and start paying premiums, it is likely that other sectors of the economy will be hit with shocks. Middle-class Americans will forgo vacations and new cars, as well as other bigger ticket items and possibly many smaller ones as insurance sucks a double-digit percentage of their disposable monthly income into the pockets of insurance executives.

While there will certainly be major growth in healthcare, there will be less money for food, rent, and other expenses, at least for the middle class.

Obamacare looks like it will do a decent job ensuring a respectable standard of care, (it's offensive provisions and the First Amendment aside) however it does nothing to actually make insurance cheaper. The subsidies promised to lower-income Americans must also be paid by someone, with interest, which will be the taxpayers of the next generation.

In addition to forcing 85 percent of Americans in the individuals insurance market to lose their policies, Obamacare is also incentivizing many larger employers to dump their workers and retirees into the public market. Companies are finding it cheaper to pay the penalties associated with not offering coverage than to pay for the coverage itself.

Obamacare may do a lot to help cover more people with insurance, but it is a fiscal disaster, right down to the individual payer. Of course, there's no promise that Obamacare will actually succeed, since we don't know what will happen after medical facilities fill up with new patients after Jan 1.

Then, we cannot even predict that because we have no idea how many Americans will actually sign up for the program. Millions still report they can't sign up at all, and millions more may refuse to sign up either because they find the Affordable Healthcare Act is quite unaffordable, or they refuse to participate in a scheme that is so onerous the Supreme Court winced in its opinion upholding it.

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