NATIONALIZING HEALTH CARE1
The Effects of Nationalizing Health Care
Eric C. Thomas
Salt Lake Community College
Economics as a Social Science - 1010
Dennis Wilson
December 17, 2012
The Effects of Nationalizing Health Care
Health Care System
The United States (U.S.) health care system took a new direction in 2010. This new direction is referenced as “ObamaCare”. The goal of ObamaCare is to provide healthcare coverage for as many citizens as possible. With coverage, preventive measures can be taken to make America a healthier place and provide treatment to all who need it. In the effort to provide the best care available, there are controls that affect the healthcare system, specifically hospitals. In this paper, Iwill discuss the broad and healthcare worker effects of ObamaCare.
The Broad Effects
What are the effects of the healthcare reform? As stated by TheHuffingtonPost.com (2012) back in 2010, here are the 18 that they came up with:
“The End Of 'Recissions' - Insurance companies can no longer drop someone when he or she gets sick.”
“No Lifetime Caps - Lifetime caps on the amount of insurance payout an individual can receive will be banned. Annual caps will be limited, and banned in 2014.”
“Adults With Pre-Existing Conditions Covered - A temporary high-risk pool will be set up to cover adults with pre-existing conditions. Health care exchanges will eliminate the program in 2014.”
“No More Denials For Pre-Existing Conditions - Health insurers cannot deny children insurance because of pre-existing conditions. A ban on the same discrimination against adults will take effect in 2014.”
“New Insurance Plans Must Include Preventative Care - New plans must cover checkups and other preventative care without co-pays. All plans will be affected by 2018.”
“Transparency In Insurance Companies - Insurers must now reveal how much money is spent on overhead.”
“Customer Appeals Process - Any new plan must now implement an appeals process for coverage determinations and claims.”
“Indoor Tanning Services Tax - A 10 percent tax is imposed on indoor tanning services. This tax, which replaced the proposed tax on cosmetic surgery, is effective for services on or after July 1, 2010.”
“Enhanced Fraud Abuse Checks - New screening procedures will be implemented to help eliminate health insurance fraud and waste.”
“Medicare Expansion To Rural Areas - Medicare payment protections will be extended to small rural hospitals and other health care facilities that have a small number of Medicare patients.”
“Deductions For Blue Cross Blue Shield - Nonprofit Blue Cross organizations will be required to maintain a medical loss ratio -- money spent on procedures over money incoming -- of 85 percent or higher to take advantage of IRS tax benefits.”
“Nutrient Content Disclosure - Chain restaurants will be required to provide a "nutrient content disclosure statement" alongside their items. Calories should be listed on both in-store and drive-through menus of fast-food restaurants.”
“Better Coverage For Early Retirees - The law establishes a temporary program for companies that provide early retiree health benefits for those ages 55‐64 in order to help reduce the often-expensive cost of that coverage.”
“Better Consumer Information On The Web - The Department of Health and Human Services will set up a new website to make it easy for Americans in any state to seek out affordable health insurance options. The site will also include helpful information for small businesses.”
“Encouraging Investment In New Therapies - A two‐year temporary credit (up to a maximum of $1 billion) is in the law to encourage investment in new therapies for the prevention and treatment of diseases.”
“Small Business Tax Credits - Businesses with fewer than 50 employees will receive tax credits covering up to 50 percent of employee premiums.”
“Seniors' 'Donut Hole' Rebate - Seniors will receive a rebate to fill the "donut hole" in Medicare drug coverage, which severely limits prescription medication coverage of expenditures over $2,700. As of next year, 50 percent of the donut hole will be filled.”
“More Young Adults Covered On Parents' Plans - The cut-off age for young adults to continue to be covered by their parents' health insurance rises to age 27.”
(Slides 1 to 18)
In reflection of the broad effects, what I think is most valuable to us as American citizens is the “No More Denials For Pre-Existing Conditions”. (TheHuffingtonPost.com, 2012, slide 1) I do not think it is fair for health insurers to deny coverage for children or some adults with pre-existing conditions because those conditions are no theirs by choice. For example, I have two female coworkers that have multiple sclerosis. While at work, I have discussed what ObamaCare has meant to one of them. She is grateful that she is able to receive healthcare coverage for this disease that is not curable at this time. (A.D.A.M., 2012, under Treatment) Particularly help with the high cost of medications for therapy.
Healthcare Worker Effects
One aspect of the nationalizing health care that I have been more interested about are the specific effects it will have on me as a member of the healthcare work force. I work as a Registered Nurse in a hospital setting. How will ObamCare effect what I do as a nurse? I found this article that was recently published back in November right before the Presidential election. As stated by DeMuth (2012),
If President Barack Obama is re-elected, ObamaCare's controls over doctors, hospitals, pharmaceutical firms and other providers of medical care will be tightened, and the operations of private insurance companies will be progressively restricted. Everyone involved will know where the process is going—to a single-payer system or one with a few chosen insurers subject to national public-utility controls—and will negotiate the best possible accommodations to it. Within a few years, a new political equilibrium will be in place, making the system irreversible and subject to only marginal adjustment. (para. 3)
These controls do have an effect on my job right now. One particular control is the patient satisfaction scores of Medicare patients that determine how much a hospital receives of reimbursement. As stated byAdamy(2012),
Nearly $1 billion in payments to hospitals over the next year will be based in part on patient satisfaction, determined by a 27-question government survey administered to patients. Hospitals with high scores will get a bonus payment. Those with low ones will lose money. (para. 3)
I can see how this will make organizations improve their care procedures and training of staff. In the economy today, that difference between getting more or less money does make a big difference to the hospital. As I think of last year and this year, I have heard of the importance of patient satisfaction many times. Management and leaders within our organization have no choice. This control has an impact of whether or not I get to keep my job. Whether I am helping or hurting the patient satisfaction scores for the organization I work for, my performance is judged off of the performance of the organization as a whole. I do not think that this is fair.
One thing that I think makes patient satisfaction scores unreliable are the perspectives of the patients themselves. We get what we call “frequent flyers” on the unit where I work. These are patients that we see admitted to the floor often. For different reasons for each patient, we will get them better and discharge them, just to see them back again in a few weeks. These patients are familiar with how the hospital functions and know what to expect. The expectations of these patients can become unrealistically too high because they have received proper and satisfactory treatment in the past, and now they are back, they have even higher expectations. From my own personal experience, I have had patients that no matter how nice or well I performed by nursing duties for them, they are still unhappy. Part of it is the nature of the beast because they are in the hospital because of sickness. We know that people act differently when they don’t feel good. That is understandable. I hope that those who have made these satisfaction surveys a requirement for hospitals understand this.
In conclusion, I hope that your knowledge of the broad and healthcare worker effects of ObamaCare has increased, particularly the effect on hospitals. The future will hold continued changes to the healthcare system under ObamaCare. It is the responsibilityof every U.S. citizen to be aware of the healthcare policies that affect them individually and as families. I hope that individuals will make wise choices when it comes to voting for new healthcare policies and use sound judgment to choose what is best for the United States of America.
References
A.D.A.M. (2012). Multiple sclerosis. Retrieved from:
Adamy, J.(2012). U.S. Ties Hospital Payments to Making Patients Happy. The Wall Street Journal. Retreived from:
DeMuth, C. (2012). Christopher DeMuth: A Referendum on ObamaCare and Liberty. The Wall Street Journal. Retreived from:
The HuffingtonPost.com (2012). Health Reform Bill Summary: The Top 18 Immediate Effects. Retreived from: