The Facts On Obamacare: Will It Make America Sick?

When Congress passed the Social Security Act in 1935, it represented the most sweeping shift in American social policy in the history of our nation. Moreover, the entire legislation contained approximately 15,283 words. When the president signed the Patient Protection and Affordable Care Act in 2010, most lawmakers had read little, if any, of the 679,000+ words contained in the bill.

 

Some believe Obamacare will occupy a place in history as one of the most intrusive and freedom inhibiting regulations ever forced upon the American people. This is because every citizen is now required to purchase an acceptable health insurance policy or pay a penalty. There are some qualified exemptions which we'll discuss another time. Despite legal challenges from at least 27 states, the Supreme Court ruled that as long as the non-compliance penalty is considered a tax, Obamacare does not run afoul of the Constitution. This is because Article One, Section Eight of the U.S. Constitution grants Congress the power to collect taxes for the "general welfare of the nation." Hence, Obamacare has become the law of the land. Coincidentally, this is the same position the Supreme Court took in 1937 when it ruled on the constitutionality of Social Security.

 

If you find yourself confused over the complexities of Obamacare, you're not alone. The problem is that there has been a tremendous amount of rhetoric from both sides of the political aisle. This, coupled with media spin, has created a great deal of confusion among the population. Although it cannot be stated with certainty if there is some Machiavellian motive lurking beneath the surface, we can draw some factual conclusions from what has already transpired. Of course, there are also unintended consequences to consider. First, let's cover some background.

 

The Three Types of Universal Health Universal Health Care

There are three basic types of universal health care. They include: Single Payor (SP); Two Tiered (TT); and Insurance Mandate (IM). A Single Payor system is completely government run. In at least one country, the government places its citizens into one of two categories. The medical services available to an individual are then based on their category. If they need services which are not included in their category, they must petition their government. In a Two-Tiered System, the government provides or mandates a minimum amount of insurance coverage for every citizen. With an Individual Mandate, the government mandates that all citizens purchase insurance, whether from private, public, or non-profit insurers. Moreover, insurance companies must accept all applicants, regardless of health. Obamacare falls under the Insurance Mandate system.

 

What Has Occurred Thus Far