That Is How Socialized Medicine Works-Two Tiered Systems.

And the liberals continue to hyperventilate about “equality”, but yet they busy themselves with setting up one healthcare model for the poor and middle class, and yet another for the affluent …

From the Wall Street Journal:

April 30, 2014 7:01 PM
The Coming Two-Tier Health System
ObamaCare is already creating one class of care for the poor and middle class and another for the affluent.


With the unveiling of the Affordable Care Act’s website, the public experienced a painful reminder of the consequences of the government’s new authority over health care. While millions signed up for insurance, millions of others abruptly lost their existing coverage and access to their doctors because that coverage didn’t fit new ObamaCare definitions.

The health-care law was generated by an administration promoting government as the solution to inequality, yet the greatest irony of ObamaCare is what will undoubtedly follow as a long-term, unintended consequence of the law: a decidedly unequal, two-tiered health system. One will be for the poor and middle class, and a separate system will be for those with the money or power to circumvent ObamaCare.

With the Affordable Care Act, the government has dramatically expanded its authority as final arbiter over health insurance and consequently over access to medical care. After the law’s Medicaid expansion and with the population aging into Medicare eligibility, the 107 million under Medicaid or Medicare in 2013 will skyrocket to 135 million five years later, growing far faster than the ranks of the privately insured.

Add to that centralization of power the Independent Payment Advisory Board (IPAB), ObamaCare’s group of political appointees tasked with reducing payments to doctors and hospitals. Even Howard Dean, former chairman of the Democratic National Committee, warned that “The IPAB is essentially a health-care rationing body. By setting doctor reimbursement rates for Medicare and determining which procedures and drugs will be covered and at what price, the IPAB will be able to stop certain treatments its members do not favor by simply setting rates to levels where no doctor or hospital will perform them.”

The hidden truth is just around the corner—those more dependent on public insurance, mostly the poor and middle class, will have limited access to medical care. About one-third of primary-care physicians and one-fourth of specialists have already completely closed their practices to Medicaid patients. Over 52% of physicians have already limited the access that Medicare patients have to their practices, or are planning to, according to a 2012 survey by Merritt Hawkins for the Physicians Foundation. More doctors than ever already refuse Medicaid and Medicare due to inadequate payments for care, and that trend will only accelerate as government lowers reimbursements.
At the same time, ObamaCare is squeezing out the middle class from affordable private insurance that correlates with far better disease outcomes than government insurance. By bloating coverage requirements and minimizing the consideration of risks fundamental to pricing insurance, the law has already increased premiums by 20%-200% in more than 40 states, according to a 2013 analysis by the Manhattan Institute’s Avik Roy and others.

Less widely known is that inadequate reimbursement by government insurance to doctors substantially increases private-insurance prices. According to a December 2008 Milliman report presented by Will Fox and John Pickering, a shortfall of more than $88 billion in payments from Medicaid and Medicare beneficiaries added more than $1,500 extra a year in premiums and $1,800 extra in total out-of-pocket costs to every family of four with private insurance. With increasing enrollment into government insurance, private premiums will undoubtedly rise even more.

Even inside Medicare, two-tiered access will occur. Under political pressure in advance of this fall’s midterm elections, the administration backed off from the ObamaCare plan to eliminate affordable private drug-coverage options inside Medicare, options that all Medicare beneficiaries enjoyed before the law. These substantial cuts will likely return post-election, limiting those choices to more-affluent seniors.

Despite the government’s assertion that the health-care law increases insurance choices, the ObamaCare exchanges do the opposite for those dependent on them and the government subsidies they offer. The average number of plans offered in individual states has decreased from 117 in 2013 to 41 in the new exchanges; consumers in 16 states now suddenly have their choices limited to three or fewer insurers.

ObamaCare is also eliminating access to many of the best specialists and the hospitals for middle-income Americans. To meet the law’s requirements, major insurers are declining to participate in the exchanges, or only offering plans that restrict choice of doctors and exclude many of America’s best hospitals. McKinsey reported a marked narrowing of hospital networks on the ObamaCare exchanges: In 2013, 33% of individual insurance offerings contained narrow or very narrow networks, but this year under the exchanges 68% of options cover only those limited networks.

For cancer care, the overwhelming majority of America’s best hospitals in the National Comprehensive Cancer Network—including MD Anderson Cancer Center of Houston, New York’s Memorial Sloan-Kettering, Barnes Hospital in St. Louis, and the Seattle Cancer Care Alliance uniting doctors from Fred Hutchinson Cancer Research Center, UW Medicine and Seattle Children’s—are not covered in most of their states’ exchange plans.

Meanwhile, concierge practices are increasing rapidly, as patients who can afford it, along with many top doctors, rush to avoid the problems of an increasingly restrictive health system. The American Academy of Private Physicians estimates that there are now about 4,400 concierge physicians, 30% more than last year. In a recent Merritt Hawkins survey, about 7% to 10% of physicians planned to transition to concierge or cash-only practices in the next one to three years. With doctors already spending 22% of their time on nonclinical paperwork, they will find more government intrusion under ObamaCare regulations taking even more time away from patient care.

As America doubles down on government authority over health care, Europeans with the means to do so are increasingly circumventing their own centralized systems. In Britain, even though they’re already paying for the National Health Service, six million Brits—two-thirds of citizens earning more than $78,700—now buy private health insurance. Meanwhile, more than 50,000 travel out of the U.K. annually, spending more than $250 million, to receive treatment more readily than they can at home. Even in Sweden, the mother of all welfare nations, half a million Swedes now use private insurance, up from 100,000 a decade ago.

Unless ObamaCare is drastically altered, America’s health care will also become even more divided, with rising inequality. Just as in the U.K. and other countries where governments take an outsize role in dictating health-care policy, only the lower and middle classes in America will suffer the full consequences of ObamaCare.
Dr. Atlas is a physician and a senior fellow at Stanford University’s Hoover Institution.


Enjoy it those of you who supported Obama, for you certainly are about to feel it.

4 thoughts on “That Is How Socialized Medicine Works-Two Tiered Systems.

  1. The real numbers are actually higher than that. I defy anyone in Bay County to find an Orthopedic surgeon, ENT, Neurologist, etc… who will accept Medicaid from their clinic practice. Your local ER physicians see these patients on a daily basis through the ER simply because they can’t find anyone to accept Medicaid. The reason is simple – It actually costs providers money to see Medicaid patients.

    A local, well respected orthopedic surgeon who does a lot of charity work through medical mission trips every year for as long as most of us have known him, tells that for every dollar he and his partners bill Medicaid, they have to spend $1.25 and wait for months and months to get reimbursed roughly 25 cents on the dollar. For that reason, they’ve refused to accept Medicaid.

    And that is just but one example. So who again wants to bash our state government for choosing not to except federal funding for a Medicaid expansion?

  2. So the dirty little secret that has not yet been unloaded upon physicians is that once the leftists see the irritation from the poor and middle class on not being able to get actual medical care with their dingy obamacare insurance cards, the deflection from the cause (obamacare national socialist bent) will involve increased propraganda attacks against “greedy” physicians who are paid double what the humble European socialist physicians are paid, and a political push for a condition of being granted a medical license is seeing some percentage (or even ALL) obamacare patients who want to force themselves upon you. You will also see more insanity in the dangerous example of New York recently passing a law that allows Nurse Practitioners to see patients without being supervised by physicians. Obamacare delenda est.

  3. Pingback: The Daley Gator | Weekend link fest

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