With Healthcare Reform on the Ropes; What does it mean for you?

Just when healthcare passage seemed to be on its way, the Massachusetts special election entered the picture; leaving President Obama with many questions regarding the future of the bill. 

As an initial move to help re-energize healthcare discussions after the Democrat’s loss of the Senate majority, Obama has encouraged leaders from both parties to meet on February 25th for a televised open forum. 

For those hoping Obama would stick with his firm commitment to reforming healthcare, this is good news. Issuing a statement on Sunday, the White House declares that Obama isn’t ready to quit, saying "that he's adamant about passing comprehensive reform similar to the bills passed by the House and the Senate." 

So what does it all mean if the healthcare bill doesn’t pass? 

• Grim Future: Americans are still driving down an unsustainable road which will eventually lead to our country’s fiscal downfall. Healthcare spending surged from 16.2 % in 2008 to 17.3% of gross domestic product in 2009. According to health guru Merrill Goozner, it is slated to rise to 19.3% in 2019. This means that in the 2019, state and federal agencies alone will spend 10 % of GDP on healthcare. This would also leave our country with fewer resources to spend on invaluable services like education. 

• Still Burned: Secondly, young adults will still remain the largest uninsured population in the country. This means that 30% of Americans between 18 and 24 will not have health insurance and nearly 27% of 25-34 year olds will stay uninsured. 

• Chronic Issues: Thirdly, young adults for the most part will still not interact with the healthcare system, largely because they are in good health. However, this is a problem because it doesn’t focus on the people until it’s too late. Regulatory check ups prevent chronic diseases, and even young adults are prone to have accidents, which require a visit to the emergency room. It all adds up. According to CBS news the average emergency room visit costs $1,000, and this figure is coming directly from the taxpayer’s pocket. 

 If it does pass… 

• Accessibility: Young adults will have greater access to insurance coverage, and they will be mandated by law to purchase it. While this could be painful in the short run for those who are struggling to afford insurance, in the long run this will spread risk in the system and should make insurance more affordable for everyone. 

• Increased Premiums: Secondly, the proposed bills could potentially increase premiums, especially for those not getting subsidies. One population who might face increases are young adults because the bills could place limits on the current age related discounts they receive. As it stands right now, young adults could have their premiums increase by over 100%. 

• Rising Costs: Lastly, depending on the form of legislation the long-term fiscal impact of reform remains uncertain and carries implications for the budget deficit.