December, 2013, The Unfolding Disaster That Is Obama Care Update, Part 2: Insurance But No Medicine, More Identity Theft Problems, The Nullify Crusade and More

Yesterday, was the first in what promises to be a long series of posts that document and analyze the latest fiascos being spawned out of the Obama Care legislation. It seems that every day another bombshell disaster is uncovered, caused by a piece of legislation that the Washington class did not read, did not understand, and probably did not write, delegating that job to lobbyists and insurance companies.

We also learned that many Americans, even if they have Obama Care health insurance coverage, will not be able to see the doctor they want to see and use or will not have access to some of the finest hospitals in the country. In order to reduce costs as much as possible, the legislation allows insurance companies to restrict insurance coverage to less costly and quite possibly less quality doctors and hospitals. We also learned that many, many doctors are voluntarily not joining Obama Care exchanges or are retiring early to avoid the hassles of Obama Care.

The bad news continues today:

1) The National Journal recently reported on a investigative report done by station KSTP, a Minnesota ABC station. They found that many state-run ObamaCcare health-care exchanges are vulnerable to a certain type of Wi-Fi hacker attack that enables computer hackers to intercept usernames and passwords.

The findings come from a Mr. Mark Lanterman, the CEO and chief technology officer of Computer Forensic Services. His company ran simulated hacker attacks for KSTP. They found that state-run Obama Care exchanges in Minnesota, Hawaii, Nevada, Colorado, New Mexico, New York, Maryland, and the District of Columbia are vulnerable to hackers and identity theft criminal elements, just one other serious worry when it comes to the failed legislation known as Obama Care. 

2) First, millions of Americans found out that they could not keep their current insurance policy as promised by the President. Then many Americans found out that they would not be able to keep their favorite doctors in an Obama Care world. Then the found out that they might not get access to their favorite hospitals in an Obama Care world.

Now, according to a recent report in Forbes, they may not be able to keep getting access to their needed medicines in an Obama Care world. Apparently, in an attempt to keep health insurance costs down, many of the Obama Care health insurance policies are not carrying the full array of medicines that current policies are carrying: 

• “If you like your medicines, you may not be able to keep them under Obamacare,” health policy analyst Scott Gottlieb wrote in a Forbes column. “Health plans are cheapening their drug formularies – just like they cheapened their networks of doctors. That’s how they’re paying for the benefits that President Obama promised, everything from free contraception to a leveling of premiums between older (and typically costlier) beneficiaries, and younger consumers.”
• And even if the health insurance company carrying the Obama Care policy does agree to pay for certain drugs, you may have to opt for a higher costing policy like the Obama care silver level policies to get your medicines paid for. If you only have the cheapest, bronze levels policies you may still be shut out of the drug you need.
• Apparently, you can appeal your case to the Federal government if a needed drug is not covered by your policy, but according to Forbes, that appeal process can take years. During that time, you can either go without the drug or pay for it yourself. If your appeal fails, you are on the hook for 100% of the medicine’s cost.
• As an added insult, if a person has to pay for a drug not covered by their Obama Care insurance policy, that cost does not even help reduce their deductibles or out of pocket limits.

Just another example of the adage where the operation was a success (i.e. the person was able to get health insurance coverage) but the patient died (i.e. their policy did not pay for the medicine that person needed to stay alive). Pathetic piece of legislation.

3) On December 9, 2013, CBS Morning News reported on another troubling aspect of Obama Care, first reported by the Wall Street Journal: skyrocketing deductible levels, that level at which a insurance policy holder has to pay 100% of medical costs up to that deductible level before getting financial help from their Obama Care insurance policy. 

Key findings of the CBS report and Journal report include:

• The average deductible level in Obama Care insurance policies is $5,081 a year. In other words, after paying monthly deductibles for the privilege of having an Obama Care policy, you then have to pay at least another $5,000 before seeing any benefit from that policy.
• The Wall Street Journal article detailed how the analysis from HealthPocket Inc., a company that compares health-insurance plans for consumers, analyzed the health care plans in 34 out of the 36 states that haven't set up their own exchanges under the Obama Care legislation. 
• Their report also proved that the $5081 average cost is "42% higher than the average deductible of $3,589 for an individually purchased plan in 2013 before much of the federal law took effect."
• The Wall Street Journal writers also noted how "'cost-sharing' subsidies to help pay deductibles are available to people who earn up to 2.5 times the poverty level....[but] the cost-sharing subsidies for deductibles don't apply to the bronze policies."

Think about a young kid/college grad just starting out in their career. He or she cannot afford a higher priced Obama care plan, they have to struggle with a so-called bronze plan, likely not being able to afford anything above bronze. Not only are the monthly premiums a strain on their budget but now they will get no help in covering their deductible costs which are now 42% higher going forward under Obama Care than they were prior to Obama Care. How does that make sense?

Makes no sense except for the fact that Obama Care was set up to screw the younger generation so that they pay more to subsidize older folks who do not have health care insurance and to pay for Obama Care mandated elements of health insurance, e.g. contraception and pre natal care, for many people that have absolutely no need for such coverage. 

4) An interesting effort is gaining steam in South Carolina’s state government. Lawmakers in South Carolina are pressing forward with state government legislation that would eliminate Obama Care in the state. The “South Carolina Freedom of Health Care Protection Act” was introduced in April and passed in the state’s House of Representatives by a 65-34 vote in June. The pending legislation is expected to head to the state Senate around Jan.14 where if it is passed, it would then go Republican Governor Nikki Haley to be signed into law.

Central to the pending legislation is a prohibition of state agencies, employees, officers and employees from implementing any part of Obama Care. The bill would outlaw state health-care exchanges and would instead issue tax deductions to individuals instead of the tax penalties they would face for not complying with the ACA. 

I am not a legal scholar so I have no idea if this attempt to “nullify“ Obama Care, which I understand has some standing and chance of success within the tenets of the Constitution, will succeed. However, the state politicians in South Carolina recognize what a lousy piece of legislation this truly is, how it is negatively affecting every aspect Americans’ health care lives, and are willing to take this unprecedented effort to shield their constituents from the negative fallout of Obama Care.

Which raises an interesting issue for both the short term Obama Care issue and the longer term central government format:

• What if the 35 states or so who said no to Obama Care state run exchanges do the same nullify thing and simply ignore Obama Care’s requirements and tenets? 
• And what if the courts uphold the states’ rights to actually nullify Federal law? 
• Does the law then collapse from the non-participation of two thirds of the country? 
• Longer term, can the states then begin to pick and choose what Federal laws they want to obey or not obey? What if the Federal government imposes draconian and un-Constitutional gun control laws on the land? Can the states then nullify that Federal law?

Fascinating scenarios, all because the Washington political class put together a historically pathetic and severely deficient piece of legislation. A piece of legislation that may lead to a state rights Constitutional crisis. 

Enough for today. What depressing lessons did we learn today about Obama Care:

1. It is still an identity thief’s paradise since industry experts have proven that many of the state Obama Care exchanges can be easily attacked via Wi-Fi networks.
2. It is now obvious that while one can get health care insurance via Obama Care, there is an increasing probability under Obama Care that your new insurance will not pay for certain, usually expensive, life saving drugs you or your family might need.
3. A Wall Street Journal analysis has shown that even if you can afford Obama Care health insurance, you may not be able to afford the additional high deductible levels that Obama Care insurance policies come with, negating the monthly premium payments you are paying.
4. The bill is so bad that at least one state is taking the unprecedented move to go down the “nullify” road to totally block Obama Care’s implementation in its state, a move likely to spread to other states. eventually end up in the courts and likely to create a Constitutional crisis in the country.

Wow, identify theft crisis, Constitutional crisis, high deductible crisis, and lack of medicine coverage crisis. Yeah, this is not going to end well or neatly. More Obama Care crises tomorrow.

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