Obamacare and the Next President

Healthcare Financial 1Obamacare and the Next President

Obamacare is a hot campaign topic and only on the chopping block if Donald Trump is elected. However, it is unlikely that he is going to be able to do anything about the biggest drawbacks of Obamacare. The problem is the current structure of the plan.

Insurers such as United Health Care are exiting. Blue Cross Blue Shield has dropped the PPO and only offering a horrible HMO. Finally, even Humana is talking about exiting the insurance exchange. This means lower quality of care and choice.

Most importantly, monthly premiums are unsustainable and going to get more and more expensive. The co-pays, deductibles, etc. seems to be getting more expensive along with the rising premiums. A recent study from the Kaiser Family Foundation shows deductibles rose about eight times faster than wages in the past 10 years.

Insurance companies are losing massive amounts of money. Thus, they are either dropping out of Obamacare or raising their premiums excessively. So, this raises a couple of questions about the election.

Will Donald Trump benefit from the Price Increases in November?

Unfortunately for the Democrats, the premium increases will be announced in October right before November’s beginning enrollment period. All of this will be right before the elections. Ever increasing price increases could really motivate voters to vote for change. After all, a Clinton Presidency means 4 or 8 more years of destructive socialistic policy.

If elected, will Donald Trump really repeal Obamacare?

I think that this whole notion of repealing Obamacare is nothing more than a soundbite and campaign fodder. Yes, they can probably change a few things. The problem is that the train has left the station. There are two major problems at stake.

First, you can’t all of the sudden bring back pre-existing conditions and start denying coverage. You can’t go from offering the sick healthcare and then take it away. We are stuck with universal healthcare.

Second, the next problem is with the subsidies. Some say he will take them away. If so, then you will really have a problem because the subsidies barely make it affordable. Without them, it definitely will not make sense and the numbers enrolled in Obamacare will plummet. You can’t even begin to make it work without the numbers.

Sure there are some things that can be changed to make things easier.  However, you can’t remove the two biggest problems with Obamacare.  Once you go there you can’t go back. Republicans have been using that threat as if they really can repeal Obamacare. The reality is that it will take a Republican House and Senate, and a Republican in the White House to create any change. Even then, it will be the same horrible plan with some adjustments to it.

Bob Brooks is host of The Prudent Money Radio Show, Financial Advisor, and active money manager that consults and helps people plan.

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