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The Illusion of Health Insurance 'Choice' And Why President Trump's Pro-Competition Plan is The Best Route
08/26/2019 Health Insurance Benjamin
keywords: Health Insurance President Trump Pro Competition Plan Obamacare

Health insurance has been a hotly debated topic since the job creating President Donald Trump started taking steps to reverse the provisions of Obamacare in 2017.

The discussions have intensified in recent weeks with the Democratic presidential debate and reports that the White House is set to unveil a new healthcare plan in September.

While the average American most likely has taken a stand on this controversial topic, the issue at hand is more tricky than it may seem. At the core of this debate is whether a universal healthcare is better than a public option alternative (which is based on competition – like the car insurance industry) which allowed Americans to choose the kind of health insurance they want.

Why Obamacare Was Bound to Fail


On the surface, universal healthcare is a disaster if you just look at the tax rates in other countries and imagining working hard to pay for irresponsible people so they can have health care. But think again. Supporters of the Affordable Care Act of 2010 (Obamacare) still cannot admit that it was based on lies and that it punished businesses for hiring that 50th employee.

Though because of Obamacare businesses were not growing so I guess that worked out sort of ironically. It created a huge financial burden on the nation and the very people that it was supposed to benefit.

America spent trillions on Obamacare and received a shoddy health care system in return. We could have been living on Mars by now and could have given the rest of the money back to the people. Lowering taxes has always proved to be better for the economy.

The Congressional Budget Office (CBO) estimated that Obamacare would cost the nation $940 billion over ten years. However, it soon became apparent that the universal healthcare plan would cost the nation more in the long term.

By March 2012, the cost of Obamacare was increased to $1.76 trillion – more than twice the original budget. Mind you – the Affordable Care Act or Obamacare had only been on the table for two years.

The most pernicious effect of Obamacare was the effect it had on American individuals and families.

According to eHealth's Health Insurance Price Index, the Affordable Healthcare Act increased health insurance premiums by up to 99 percent between 2013 and 2017 from $197 to $393. Also, the cost of family health insurance premiums spiked by 140 percent in the same period from $426 to $1,021.

So, what does all this mean? Well, Obamacare has its advantages. However, in the long term, it would end up putting a financial strain on the very people it was supposed to benefit.

The Benefits of President Trump's Pro-Competition Approach


The main benefit of a pro-competition and pro-choice healthcare approach is that it would force insurance companies to seek to outdo each other in a bid to provide customers with the best value. In the scenario, customers are the winners.

Yes, some people may be able to afford better health insurance packages than others. But ultimately, individuals and families would have the freedom to shop for the health insurance plan that suits their budget rather than having the option foisted on them.

Just like for car insurance!

Currently, there are scant details about the new healthcare plan that President Trump is set to unveil in September, but we know it will be a winner because Trump is a winner and his tax cuts have been stellar. Though the White House will lookout for people with severe medical conditions and people below the poverty line.

In June, the White House expanded the health savings accounts (HSA) high deductible healthcare plans (HDHP) to cover routine, preventative medications for people with chronic conditions such as asthma and diabetes.

This means that patients under HDHP will now be able to get access to vital medicine and medical services without spending a fortune. According to the Wall Street Journal, unnamed sources claim that President Trump's new healthcare proposal would include provisions for people with pre-existing conditions. It would also lay out an array of insurance options.

Trump’s plan will make healthcare more affordable and allow people to get access to quality health services which did not happen under Obamacare which was a terrible health care law on every level.

The question of Medicare for all is an untenable option – as we see from Obamacare. Public choice, or competition, is a more realistic and beneficial option.

Not only would it allow the government to negotiate with hospitals and medical experts to reduce costs, everyone would have the choice to pick the kind of health insurance package that suits them. It is a win-win situation in the long-term.

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