Obamacare will be a success despite glitches.

By | October 5, 2013

Pretty much every one of my friends has been asking me about my insights on Obamacare a long time since. I thought I should check this out. The Patient Protection and Affordable Care Act more popularly known as Obamacare was signed into law on March 23 2010.

So here’s my take on Obamacare. Don’t worry I will not bore you with the facts you already know about this bill. The law regulates many things including but not limited to setting up an affordable health care market place, where Americans can purchase federal regulated and subsidized insurance.

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There are huge challenges that are lurking afore the success of this bill, beyond all the uproar political arguments and technical glitches only two things really seems to matter. The onus very much rests on the technical challenges.

Connecting multiple government agencies, together via cloud based infrastructure and having software calculate plan rates, and subsidies, for various geopolitical provinces across America is a gargantuan task.

By Oct 10 2013 we would have all clouds cleared up as enrollment data begins to show up signs of success, or failure, or the glitches. And on the second part I perceive Obamacare’s success hinges on the part of young individuals who would willingly go to health exchanges to purchase insurance, consequently helping offset costs of incurably sick elderly seniors who are the vast majority.

Ironically as the president suggests that 85% of the Americans are already experiencing the health care benefits the program has to offer. It’s only the remaining 15% uninsured Americans that start enrolling by late 2013 till end of 2014 and that is the mute warning.

Without the younger healthy adults paying into the system, there’s a very little Obamacare could do to prevent premiums shooting up. A recent survey pointed to the fact that only 5% of folks accounted for 50% of the over-all health care costs of USA.

Owing to this fact I foresee a great amount of reluctance among younger healthy adults to purchase insurance covers. The question however is how they react? It’s very likely that they end up getting fewest subsidies; burdened with highest premiums you could well expect contempt from this segment.

So also there are individuals who are young who feel invincible, and now compelled by law to purchase insurance which in fact they never did. With extremely low penalties in the first year I foresee Obamacare stumbles in its commencement stages.

The staunch supporters of this bill place the onus on expansion of Medicaid. This obviously creates a scenario for insurance companies, with a demand growth for a minimum of 4 to 8 million new insurance covers. There are clearly going to be companies that will wind up as winners and losers.

While insurers are unlikely to turn away patients with preexisting conditions, let us ponder over some of the major players who would be likely impacted by the health care windstorm.

Shall we? Okay so here we go…

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