3 Ways "Free" Health Care Will Cost You Dearly

The health care reform bill has passed. Any time a bill this expensive and complicated gets this far along in the lawmaking process it’s worth a second, closer look at the details that are likely to cause you the most heartburn.

Here are three points in particular from John Stossel at Fox Business:

“1) The ban on “discriminating” against anyone with a pre-existing condition. This is popular, and yet one of the most damaging part of the bill. It forbids insurance companies to charge sick people more for insurance. The result: I will wait until I get sick to get insurance. The bill supposedly has a $750 fine for not buying insurance [Page 323.] But that won’t even be enforced [page 336.]…

“2) The cost. Supposedly $568 billion just for the years 2015 to 2019 (it doesn’t really kick in until 2015.) This comes at a time when the debt is already so high that the federal government is in danger of losing its AAA credit rating. And get this — Warren Buffet’s company can now borrow money at a lower rate than the US government — apparently investors believe his company is more likely to pay them back…

“3) Mandates will raise costs. The bill forces all insurance plans to cover ‘at least… maternity and newborn care… Mental health and substance disorder services… behavioral health treatment… preventative and wellness services and chronic disease management… pediatric services, including oral and vision care.’ In the real world, some people want these and some don’t. By requiring insurance companies to pay for all, we guarantee vast increases in wasteful spending…”

It’s no real surprise that Stossel finds the cost excessive or that new inefficiencies in the health care market will occur. Yet, it is interesting to see a downside to coverage of pre-existing conditions. Those clauses seem to be a favorite way for health care companies to dodge patient bills. We’ll see how the new system works on that front in due time.

For a longer explanation of each point visit John Stossel’s Fox Business commentary on the three worst Obamacare ingredients.


Rocky Vega,
The Daily Reckoning

The Daily Reckoning