Negative Consequences of New Health Care Law Requirements

Back on March 10, Speaker Nancy Pelosi gave a major policy speech about her efforts to pass President Obama’s health care bill.  She said, “…we have to pass the bill so that you can find out what is in it.”

The bill was passed and signed into law.  Over the last few months, we’ve had the opportunity to “find out what is in it.” Many people do not like what they’re seeing.

In the haste to pass HR 3590, the Patient Protection and Affordable Care Act, many provisions purportedly intended to provide people with health care assistance, have actually had unintended, negative consequences, which the Obama Administration is struggling to repair after the fact. 

Recent examples:

1.    Employers at some of the nation’s largest companies report that they may no longer be able to provide health insurance, known as “mini-med” plans, to their part-time or low-wage employees.

2.    Many are dropping health care benefits for retirees due to an expired tax credit that allows companies to provide prescription drug benefits.

3.    The U.S. Department of Health and Human Services (HHS) is allowing insurers to charge higher premiums for coverage of children with serious medical problems, if states allow.

4.    Insurance companies are dropping Medicare Advantage plans, offering seniors fewer choices.

5.    There is no clarity on the minimum medical loss ratio (MLR) requirement, which calculates the percentage of revenue received from premiums that insurers must spend on benefits.

6.    We are seeing increased costs for health care plans for individuals and families.

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By Joseph Hovanec Jr.



It is clear that H.R. 3590 is not reducing the cost of health care which of course was the only justifiable reason to pass it. Instead, we are seeing massive cost increases from Insurance Companies who are doing nothing more than passing their increased cost to comply with the new law on to their insureds. 

NJECPAC members informed NJ Congressmen and Senators of that reality back in May when we visited them at their Washington Offices. 

At a recent meeting I attended in Dallas Texas, I met with many respected Electrical Contracting Business Owners from all over the country.  Many of them have begun negotiatiations with their Health Care Providers for renewing their policies under Obamacare. Each of them reported increases for their Companies Health Insurance Plans ranging anywhere between a minimum of 19% and as high as 49%

Did anyone that signed on for this kind of Hope and Change? Those that voted for H.R. 3590 have been called incompetent by some, I prefer to call them arrogantly ignorant.