Originally, President Obama’s health insurance reform was proposed as a complete transformation of the entire healthcare system. However, a recent conference revealed that it has now become a plan for “health insurance reform”, changing only regulations concerning health insurance policies.
There were many reasons why his original bill would have been rejected, the biggest of which being the cost. Over 10 years, the new bill would have cost nearly $1.6 trillion to implement. In addition, the Congressional Budget Office dispelled Obama’s “out years” myth, a belief that the new health reform initiative would balance out the initial increased costs with long-term savings. In actuality, the bill would cause deficits to increase over the subsequent 20 years after the passing of the bill.
Now, Obama plans only to regulate health insurance, ensuring that policies are secure. This means eliminating pre-existing condition requirements and policy cancellations. However, this proposed plan of action will inevitably cause many health insurance providers to go bankrupt.
That’s why the nearly 20 million Americans who do not have health insurance will soon, under Obama’s health insurance reform plan be obligated to buy it. This will ensure that health insurance companies do not go under but it will not please individuals who choose to forgo buying insurance, many of which do so rationally because they do not have a pre-existing medical condition or foresee any risk of contracting one. It will, however, benefit those who have already obtained health insurance or are thinking of doing so in the near future.