Mark Schug: Insurance Regulations Will Be Costly

Mark Schug opines that PPACA will inevitably increase the cost of health care insurance for the average consumer.
Mark Schug, professor emeritus at the University of Wisconsin-Milwaukee, has penned an opinion piece on the Patient Protection and Affordable Care Act, also known as PPACA or Obamacare. Schug suggests that PPACA will ultimately increase the costs of health care and health insurance, as well as increase the cost to consumers in the form of increased taxes.

Schug asks some interesting questions, such as "Why does the government want single males to purchase insurance that covers pregnancy, or childless couples to purchase pediatric coverage?"

"Why does the government want single males to purchase insurance that covers pregnancy, or childless couples to purchase pediatric coverage?"
PPACA mandates that certain "essential health benefits" must be provided by a health insurance policy in order for that policy to be a "qualified health plan" under the law. These "essential" benefits do include maternity and newborn coverage, as well as coverage for pediatric services. Thus, in order to buy coverage through the health insurance exchanges, also mandated by PPACA, all health insurance consumers will be required to purchase plans with these "essential" benefits, even if the benefits are fundamentally inapplicable.

Schug points out what many have cited as a fundamental flaw of the "essential health benefits" package: the prohibition against imposing preexisting condition exclusions on group health plans under certain circumstances. This, according to Schug, will allow healthy people to "game the system by waiting to buy insurance until after they get sick."

PPACA's looming tax increases on pharmaceutical companies, medical-device companies and insurance companies, suggests Schug, could increase health insurance premiums significantly. In fact, Schug cites the "federal government's chief Medicare actuary" regarding an estimated $107 billion in taxes that could be passed on to the consumer.

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2 comments:

  1. The increase of the cost of health care insurance can really affect a lot of average consumers. I think they should probably adjust immediately to avoid further problems.

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  2. Costly, yes, but doesn't mean people should avoid using it or see it as a blatant scam.

    private health insurance

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