COBRA Subsidy: Health Care Reform Skyrocketed Insurance Costs

By Richard West on August 31, 2010, 3:26 pm

The health care reform bill has not gone into effect yet, but analysts predict it will have an adverse effects on the cost people pay for medical coverage. The core issue is that people currently shop around for their insurance company, they do not necessarily shop around for a doctor or a hospital to see which doctors or hospitals provide the least expensive care. The bill requires all Americans to have coverage by 2014.

Increasing the Ranks Of Medicaid And Medicare

The COBRA subsidy has added to the debt, but congress has decided not to extend it. The federal government has also expanded the qualifications under which people can qualify for Medicare and Medicaid. This occurred before the Obama administration came into power. While it extends the coverage for disabled workers and encourages people to work if they want to, it also has increased the number of people taking advantage of the second program. Neither Medicaid nor Medicare is efficiently run, and doctors are reluctant to take patients because of the difficulty in getting reimbursement from the government agencies that handle the care.

 

Why Health Care Costs Will Skyrocket

The major reason has to do with the lack of competition for medical services. Doctors know that the insurance companies will pay more than the average patient will. In fact, people who pay in cash usually get a discount on the services, although these services are usually difficult for most people to pay for out of their own pocket. The prices will go up gradually as doctors test what a patient’s insurance company will pay knowing that the patient will make up for the rest. It is a win-win situation for medical professionals, but one where the consumer ultimately loses.
The costs of care must be made transparent and patients need to be rewarded for saving money before true reform of the health care system can occur.

Related posts:

1. Health Care Insurance Costs Rising And Will Keep Going Up
2. Medicare Part B Will Cost You: How Much And Beyond
3. Medicare Part B: Covers Services Necessary For Preventative Care
4. Curious About Medicare Part C: Just Think HMO Or PPO For Medicare
5. Health Care: Palone Looks Into Insurance Premium Increases

One Response to “COBRA Subsidy: Health Care Reform Skyrocketed Insurance Costs”

1. Health Insurance: Obamacare May Affect Wall Street Insurance Stocks | Bulls And Bears says:

   September 15, 2010 at 12:37 am

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