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The Destruction of Private Healthcare Insurance

Posted Jan 09 2013 12:06pm
Stanley Feld M.D., FACP, MACE

One of these days Americans are going to pay attention to how President Obama is destroying private healthcare in America.

Many people will fine this hard to believe because he is such a nice guy and many people like him.

He is making the healthcare insurance industry destroy itself by forcing them to increase healthcare insurance rates.

The destruction is so well designed that the public cannot take notice. The healthcare system will not be more affordable or accessible to anyone in the nation.

The changes will provide President Obama with another tool to redistribute wealth and increase the individual’s dependence on the federal government. This defines President Obama’s goal in affecting all areas of our life.

Americans are on the Road To Serfdom.

I remember Barney Frank and John Kerry saying that healthcare reform would not work without a “Public Option.” I also remember President Obama saying we can make it work without a “Public Option.”

President Obama’s original plan was to eliminate private insurance. Americans would have no choice but a “Public Option.”  (National Health Plan)


  Kathleen Sebelius , the secretary of health and human services said, s he “retains authority to make the final decision” on insurance rates if she finds that a state acted in an arbitrary or capricious way in denying a rate increase sought by a nationwide health plan.


This is the first time I have seen President Obama’s administration use the words “National Health Plan.”

It was obvious President Obama was not truthful when he said “if you like your physician you can keep him” and “if you like your healthcare insurance you can keep it.”

Congress made a gigantic while passing Obamacare and transferring all healthcare policy decision making power to the executive branch of government.

President Obama’s goal is to have complete control over the healthcare system. He wants to force the private healthcare insurance industry out of business. He wants to socialize the entire medical care industry into a single party payer system.  The government will be the single party payer.

Healthcare will then be a ubiquitous entitlement program that the government cannot afford unless it increases taxes entire population according to the taxpayers means.

This is the pattern behind many of the articles written in isolation by the traditional media.

The unintended consequences resulting from each policy change will be overwhelming.

I have been fascinated by President Obama’s negotiating strategy.  

Americans are going to wake up to the fact that President Obama has increased taxes for the funding of Obamacare by $1 trillion dollars over the next ten years aside from the tax hikes effective January 1st.

Americans are going to wake up and feel deceived by President Obama when they realize they are getting little for their increased taxes except government control over their freedoms.

I predict President Obama’s plans will blow up in his face.

Consumers will protest when they recognize the impact these multiple new taxes will have on their discretionary income. President Obama will not get the funding he needs from congress.  

His physician workforce will not cooperate. Hospitals are starting to wake up and are seeing they were deceived. They thought they would do better because they have bought physician practices.

Recently they automatically received cuts in reimbursement while the doctor fix was extended for another year. Physician reimbursement will be cut and the physician workforce will dwindle.

On Friday afternoon November 30th 2012 the Obama administration pulled a stunt on the healthcare insurance industry.

The Obama administration said Friday that it would charge insurance companies for the privilege of selling   health insurance  to millions of Americans in new online markets run by the federal government.”

The cost of these “user fees” can be passed on to consumers. The proposed fees could add 3.5 percent to premiums for private health plans sold in insurance exchanges operated by the federal government.

The "user fees" are another tax to consumers.

The government is disregarding the fact that healthcare insurance premiums are too high for employers to provide healthcare insurance for employees now.

Employers are opting to drop healthcare insurance coverage and pay the government penalty. Some are dropping healthcare insurance and avoiding the penalty by decreasing the number of employees to under 50 employees or decreasing employees work hours to under 30 hours per week.

This will increase, not decrease the tax burden on the consumer.

The exact effect of the health insurance exchange on the healthcare industry is muddled.

It looks as if President Obama is rapidly moving toward a “Public Option.”

Consumer advocates, insurers, and some state officials had expressed concern about delays in publication of the rules for this new proposal.

President Obama has used this is the same tactic before. Consumers and agencies must accept the changes before the rules are published.

Consumers and state governments do not trust President Obama. They are afraid to say yes when they do not know what they are saying yes to. In the end it  looks like the state governments and the consumers will get stuck with the bill and the federal government will have complete control over the healthcare system.

CMS said. “These plans will be offered by private insurance companies under contract with the  United States Office of Personnel Management . The agency already provides insurance to eight million federal employees, retirees and dependents.”

The scary part is the administration said, “It (the government) retains authority to make the final decision” on rates if it finds that a state acted in an arbitrary or capricious way in denying a rate increase sought by a nationwide health plan.”

The term “Nationwide Health Plan” and “final authority” sounds as if the government is taking over.

The federal government will also have control over physicians and hospital fees.  It will also control access to care and the rationing of care.

It is almost too late for consumers to wake up.

No one can say President Obama didn’t tell us.

It can only be said the plan was so obfuscated, final rules so delayed and unsubstantiated promises made and not publicized on a Friday afternoon the week after Thanksgiving that the public did not understand what was going on and could not express an opinion.

The games President Obama and his administration play are dizzying. The irresponsibility of our elected congressional officials who are supposed to be our surrogates is unconscionable.

   The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone.

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