The Price of Socialized Medicine: Obamacare's Unconstitutionality by the Numbers

THE PRICE OF SOCIALIZED MEDICINE: Obamacare's Unconstitutionality by the Numbers The Patient Protection and Affordable Care Act (PPACA), more commonly known as Obamacare, has been controversial since its inception, long before this bill was signed into law by President Barack Obama. Proponents of the law have championed the need for socialized healthcare in the United States, and believe that Obamacare is the only legitimate way to achieve this goal. Unfortunately, many provisions of Obam- acare will prove to be extremely expensive for both individual taxpayers and businesses alike. More impor- tantly, some provisions, such as requiring Americans to obtain insurance coverage or pay a government penalty, are seen as unconstitutional by many, which lead to lawsuits by a majority of states challenging Obamacare's constitutionality. OBAMACARE TIMELINE March 23, 2010: September 23, 2010: March 26-28, 2012: January 1, 2014: Dependents are eligible to Supreme Court case: U.S. Department of Health and Human Services v. Florida Patient Protection and Affordable Insurance Affordable Care Act (PPACA) signed into law Exchanges are established remain on parents' health plan until age 26 July 1, 2010: January 1, 2011: June 28, 2012: January 1, 2016: Pre-Existing Condition Insurance Plan begins Insurers must spend at least 85% of premiums on eligible expenses Supreme Court upholds the Annual penalty for not securing health insurance rises PPACA in a 5-4 decision providing coverage to high-risk uninsured persons, but 18 states refuse to administer to $695, or 2.5% of income, whichever is greater the program SUPREME COURT DECISION: OBAMACARE UPHELD In a 5-4 decision, the Supreme Court ruled to uphold the PPACA, citing that the individual mandate penalty qualifies as a tax. ALITO SCALIA THOMAS KENNEDY BREYER KAGAN SOTOMAYOR GINSBERG ROBERTS Repeal Uphold WHAT OBAMACARE WILL COST EACH STATE ANNUALLY $2.2 - $27 Billion $1.1 - $2.1 Billion $442 - $866 Million $101 - $441 Million <$100 Million WHY OBAMACARE REALLY ISN’T AFFORDABLE AT ALL Health insurance providers will be required to pay a 40% excise tax on coverage amounts in excess of $10,200 - costing providers $32 billion between now and 2019. They will also have to pay an annual fee Presumably, the taxes that the government collects from the insurers and prescription drug companies based on their market share, estimated to be $60 billion in total by 2019. makes healthcare more affordable for consumers. And... In order to pay for new taxes, health insurers will pass the costs onto customers in the form of higher premiums and rates. 5. And... In order to pay for new taxes, drug companies will pass these costs onto customers with higher prices for medications still under patent. But... Individuals without health insurance will be Importers and manufacturers of brand name drugs will be subjected to annual taxes totaling $27 billion by 2019. required to pay a penalty. (4 HOW COMPANIES ARE INCENTIVIZED TO ELIMINATE HEALTHCARE PLANS According to the U.S. House Committee on Energy and Commerce, several large companies have indicated that they will likely stop providing healthcare plans for their employees. Paying the penalty for failing to provide such plans will cost significantly less than actually providing healthcare coverage, saving many Fortune 100 companies millions of dollars per year. $303M $139M $108M $25M Average for 71 Fortune 100 CAT companies polled SOUTHWEST AIRLINES at&t THE COST OF OBAMACARE VS. OTHER SOCIAL ASSISTANCE PROGRAMS Social Services Block Grant $1,832.000.000 Child Support Enforcement $4,324,000,000 Children's Health Insurance Program (CHIP) $10,485,000,000 Housing and Urban Development $41,590,000,000 Obamacare $181,040,000,000 iss $ $ $ 24 24 Substance Abuse and Mental Health Services $3,541,000,000 Foster Care and Adoption Assistance $7,442,000,000 Temporary Assistance for Needy Families $21,001,000,000 Food Stamps (SNAP) $65,000,000,000 THE INDIVIDUAL MANDATE PENALTY FEE Individual Mandate is one mos controversial provisions of Obamacare, as it forces individuals to enter a market. Those without health coverage by 2016 will be required to pay a yearly fee of either 2.5% of their income, or $695, whichever is greater. Based on the average American income, the average penalty per year would be: $1,041.57 UNINSURED AMERICANS AFFECTED BY INDIVIDUAL MANDATE The Individual Mandate will have an impact on many Americans who currently do not carry any health insurance coverage. Those affected will be forced to either obtain coverage immediately, or risk paying fees that would range from $695 to $2,085. According to the Urban Institute's estima- tions, the total number of American citizens affected by this could be as high as: 26,000,000 STATES THAT HAVE FILED LAWSUITS AGAINST THE PPACA AL AK AZ CO GA ID LA IN IA KS ME MS MI NE NV ND Ок OH PA SD TX WA WI UT WY VA The issue of healthcare in America is not one that will be going away any time soon, despite the Supreme Court narrowly upholding the law. Obamacare provides an imperfect and unconstitutional solution to a complex issue. Some parts of the bill incentivize companies to stop providing healthcare for their workers, while other mandates incentivize health insurance and drug companies to pass new costs onto consumers. Obamacare will end up costing states, businesses, and individuals millions upon millions of dollars. Obamacare had its constitutionality challenged by 28 states as a result of both the costs and mandates present in the billI. The numbers show that the dollar price of socialized medicine is clearly R. very steep, and these costs will no doubt have a negative impact on the economy in the years to come. What remains to be seen is how much US citizens will have to pay in rights and liberties now that Obamacare has been upheld. 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