Health Care Reform: Costly

In a recent article by the Associated Press, It stated that President Obama’s health care overhaul plan will likely increase costs and proposed Medicare savings may end up hurting the program. In a recent study conducted by the Health and Human Services Department, “Found that the nation’s $2.5 trillion annual health-care tab won’t shrink under the Democratic blueprint that senators are debating. Instead, it would grow somewhat more rapidly than if Congress does nothing.”

The Democrats’ plan to cut Medicare for $492 billion in savings on 10 years relies on specific policy changes that are unlikely and could lead to cuts in services. The article also stated, “The Medicare savings are expected to cover about half the nearly $1 trillion, 10-year cost of expanding coverage to the uninsured.”

Also a new long term healthcare insurance plan would likely fail because “it would attract people in poor health, leading to higher and higher premiums, and eventually trigger an “insurance death spiral.” To view the full article click here. For more information contact a Kimberley Vassal Insurance Agent today by visiting our website at www.kimberleyvassal.com

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