Don't be Stampeded by First Reports

 Many years ago in my early years of training and development, I often referred to a quote from General Colin Powell which goes as follows:

“Don’t be stampeded by first reports.
Don’t let your judgments run ahead of the facts.
And, even with supposed facts in hand, question them if they don’t add up.”

Seems like appropriate wisdom to use when analyzing the current climate of health care reform, commonly referred to as the Affordable Care Act or Obamacare.

Journalists representing dozens of periodicals and newspapers have taken anecdotal pieces of the legislation and sculpted their interpretation of the law, while newscasters have done much the same.  However, taking over 20,000 pages of government gobbledygook (better known as legal script) and putting it to plain speak is not an art that is regularly practiced nor understood.

Recently, you’ve likely been bombarded with reports representing both sides of the Obamacare argument.  One side, Obama’s, states that the new health care law will provide affordable care alternatives for the poor and, less accurately stated, much of the middle class.  The other side of the argument states that the legislation creates an entitlement state regarding healthcare and infringes on the basic liberties of the American people. 

Like most complicated arguments, the answer lies somewhere in the middle.  Yes, Obamacare does provide relief for many underprivileged people that otherwise would not be able to afford healthcare.  However, at what cost?  There are more than four dozen tax code implications (An estimate that errors on the low side), many of which have already been implemented and some of the most intense yet to arrive in 2014 and beyond.  Those taxes have increased the likelihood of businesses hiring fewer people, converting full-time workers to part-time workers and requiring investment of time and money to remain compliant with all of the new reporting regulations, mostly to be submitted to the IRS. The employer mandate, for which the penalties have been delayed until 2015, simply expands the problem for employers, from which the middle class derives most of its income.

Despite the challenges on the horizon, some of the provisions that have been implemented prior to 2014 are logical and somewhat tolerable to most people on both sides of the argument.  Allowing a dependent to remain on a parent’s health plan until age 26, simplified summary of benefits, acceptance of pre-existing conditions and several other items certainly make sense and bring the pendulum back to the middle regarding health insurance.  However, don’t be fooled by first reports on the overall effectiveness of the entire act. 

There are many other logical solutions to the problem of escalating health care costs.  Some states have seen tremendous reductions in costs simply by enacting tort reform; allowing doctors to practice medicine without the paranoia that they’ll be sued after applying their best efforts to diagnose and treat a patient.  That is not to say that legal remedies no longer exist, it simply denies the frivolous and unnecessary suits from invading on one’s best efforts as a physician.  Currently, millions of dollars are spent every day to run redundant tests in order to justify that, “I did everything possible,” when put on the witness stand. 

Additionally, don’t be stampeded by first reports on the level of care that you’ll receive when you anticipate low rates.  Networks are smaller and some plans might not include a doctor or hospital of your choice.  Additionally, due to increased government documentation and compliance, many physicians will close their practice.  Some have already decided to take that course of action.  Those that remain will have limited resources to treat the influx of patients; requiring longer wait times for care and scheduling for an appointment.

Remember the statement, “If you like your current health plan, you can keep your current health plan?”  That was certainly a statement that should be scrutinized under the “Don’t be stampeded by first reports” rule of thumb.  It’s simply not true in most cases.  New plan requirements have caused all in the individual and small group markets (< 50 employees) to anticipate significant plan changes in 2014.  Most plans will see an increase that is substantial based on the coverage requirements (Essential Health Benefits, etc.).

Obviously our society needed a solution to the escalating costs of healthcare.  We still have time to logically tackle that issue.  There are many unintended consequences to the current legislation.  To summarize them would almost require a book.  Therefore, based on the facts that we currently understand, perhaps now is the time to “Question them if they don’t add up,” before it’s too late.