Is the U.S. consumer tapped out? If so, how in the world will the U.S. economy possibly improve in 2014? Most Americans know that the U.S. economy is heavily dependent on consumer spending. If average Americans are not out there spending money, the economy tends not to do very well. Unfortunately, retail sales during the holiday season appear to be quite disappointing and the middle class continues to deeply struggle. And for a whole bunch of reasons things are likely going to be even tougher in 2014. Families are going to have less money in their pockets to spend thanks to much higher health insurance premiums under Obamacare, a wide variety of tax increases, higher interest rates on debt, and cuts in government welfare programs. The short-lived bubble of false prosperity that we have been enjoying for the last couple of years is rapidly coming to an end, and 2014 certainly promises to be a very “interesting year”.
Obamacare Rate Shock
Most middle class families are just scraping by from month to month these days.
Unfortunately for them, millions of those families are now being hit with massive health insurance rate increases.
In a previous article, I discussed how one study found that health insurance premiums for men are going to go up by an average of 99 percent under Obamacare and health insurance premiums for women are going to go up by an average of 62 percent under Obamacare.
Most middle class families simply cannot afford that.
Earlier today, I got an email from a reader that was paying $478 a month for health insurance for his family but has now received a letter informing him that his rate is going up to $1,150 a month.
Millions of families are receiving letters just like that. And to say that these rate increases are a “surprise” to most people would be a massive understatement. Even people that work in the financial industry are shocked at how high these premiums are turning out to be…
“The real big surprise was how much out-of-pocket would be required for our family,” said David Winebrenner, 46, a financial adviser in Lebanon, Ky., whose deductible topped $12,000 for a family of six for a silver plan he was considering. The monthly premium: $1,400.
Since Americans are going to have to pay much more for health insurance, that is going to remove a huge amount of discretionary spending from the economy, and that will not be good news for retailers.
Get Ready For Higher Taxes
When you raise taxes, you reduce the amount of money that people have in their pockets to spend.
Sadly, that is exactly what is happening.
Congress is allowing a whopping 55 tax breaks to expire at the end of this year, and when you add that to the 13 major tax increases that hit American families in 2013, it isn’t a pretty picture.
This tax season, millions of families are going to find out that they have much higher tax bills than they had anticipated.
And all of this comes at a time when incomes in America have been steadily declining. In fact, real median household income has declined by a total of 8 percent since 2008.
If you are a worker, you might want to check out the chart that I have posted below to see where you stack up. In America today, most workers are low income workers. These numbers come from a recent Huffington Post article…
-If you make more than $10,000, you earn more than 24.2% of Americans, or 37 million people.
-If you make more than $15,000 (roughly the annual salary of a minimum-wage employee working 40 hours per week), you earn more than 32.2% of Americans.
-If you make more than $30,000, you earn more than 53.2% of Americans.
-If you make more than $50,000, you earn more than 73.4% of Americans.
-If you make more than $100,000, you earn more than 92.6% of Americans.
-You are officially in the top 1% of American wage earners if you earn more than $250,000.
-The 894 people that earn more than $20 million make more than 99.99989% of Americans, and are compensated a cumulative $37,009,979,568 per year.
It is important to keep in mind that those numbers are for the employment income of individuals not households. Most households have more than one member working, so overall household incomes are significantly higher than these numbers.
Higher Interest Rates Mean Larger Debt Payments
On Tuesday, the yield on 10 year U.S. Treasuries rose to 3.03 percent. I warned that this would happen once the taper started, and this is just the beginning. Interest rates are likely to steadily rise throughout 2014.
The reason why the yield on 10 year U.S. Treasuries is such a critical number is because mortgage rates and thousands of other interest rates throughout our economy are heavily influenced by that number.
So big changes are on the way. As a recent CNBC article declared, the era of low mortgage rates is officially over…
The days of the 3.5% 30-year fixed are over. Rates are already up well over a full percentage point from a year ago, and as the Federal Reserve begins its much anticipated exit from the bond-buying business, I believe rates will inevitably go higher.
Needless to say, this is going to deeply affect the real estate market. As Mac Slavo recently noted, numbers are already starting to drop precipitously…
The National Association of Realtors reported that the month of September saw its single largest drop in signed home sales in 40 months. And that wasn’t just a one-off event. This month mortgage applications collapsed a shocking 66%, hitting a 13-year low.
And U.S. consumers can expect interest rates on all kinds of loans to start rising. That is going to mean higher debt payments, and therefore less money for consumers to spend into the economy.
Government Benefit Cuts
Well, if the middle class is going to have less money to spend, perhaps other Americans can pick up the slack.
Or maybe not.
You certainly can’t expect the poor to stimulate the economy. As I mentioned yesterday, it is being projected that up to 5 million unemployed Americans could lose their unemployment benefits by the end of 2014, and 47 million Americans recently had their food stamp benefits reduced.
So the poor will also have less money to spend in 2014.
The Wealthy Save The Day?
Perhaps the stock market will continue to soar in 2014 and the wealthy will spend so much that it will make up for all the rest of us.
You can believe that if you want, but the truth is that there are a whole host of signs that the days of this irrational stock market bubble are numbered. The following is an excerpt from one of my recent articles entitled “The Stock Market Has Officially Entered Crazytown Territory“…
The median price-to-earnings ratio on the S&P 500 has reached an all-time record high, and margin debt at the New York Stock Exchange has reached a level that we have never seen before. In other words, stocks are massively overpriced and people have been borrowing huge amounts of money to buy stocks. These are behaviors that we also saw just before the last two stock market bubbles burst.
If the stock market bubble does burst, the wealthy will also have less money to spend into the economy in 2014.
For the moment, the stock market has been rallying. This is typical for the month of December. You see, the truth is that investors generally don’t want to sell stocks in December because they want to put off paying taxes on the profits.
If stocks are sold before the end of the year, the profits go on the 2013 tax return.
If stocks are sold a few days from now, the profits go on the 2014 tax return.
It is only human nature to want to delay pain for as long as possible.
Expect to see some selling in January. Many investors are very eager to start taking profits, but they wanted to wait until the holidays were over to do so.
So what do you think is coming up in 2014? Please feel free to share what you think by posting a comment below…
If there were any shreds of hope left that the stunning decline of the middle class could be turned around, Obamacare has absolutely destroyed them. Over the past decade or so, the middle class in the United States has been absolutely eviscerated. The number of working age Americans without a job has increased by 27 million since the year 2000, median household income in the U.S. has fallen for five years in a row, and the poverty numbers in this country are spiraling out of control. And now here comes Obamacare. As you will see below, Obamacare is causing millions of Americans to lose their current health insurance policies, it is causing health insurance premiums to explode to absolutely ridiculous levels, and it is systematically killing jobs even though the employer mandate has been delayed for a while. All of this is creating a tremendous amount of stress for millions of middle class families that are already stretched extremely thin financially. According to CNN, a survey that was conducted earlier this year found that 76 percent of all Americans are living paycheck to paycheck. Most of those families simply cannot afford to pay much higher health insurance premiums for new policies that also come with much larger deductibles and significantly increased out-of-pocket costs. Millions of those families will ultimately end up choosing to do without health insurance altogether, and that will create a whole host of new problems. This is a disaster that is so enormous that it is really hard to put into words. If the U.S. health care system was a separate country, it would be the 6th largest economy on the entire globe all by itself. And now Obamacare is going to bring the entire U.S. health care system to its knees.
Obamacare: Since October 1st, The Number Of Americans With Health Insurance Has Fallen By Nearly 4 Million
Last week, Barack Obama decided to allow Americans to keep their current health insurance plans for one more year.
Isn’t that generous of him? Especially considering the fact that he promised us over and over that if we liked our current health insurance policies that we would be able to keep them permanently.
The funny thing is that Obama is not actually changing the law. So if your health insurance company allows you to stay on your current health insurance plan that does not meet the requirements of Obamacare, it is technically breaking the law.
And if you continue to stay on that current health insurance plan that does not meet the requirements of Obamacare, you are technically breaking the law.
It is just that Obama has promised not to enforce what the law says for one year.
For a president to just blatantly disregard the rule of law is a very dangerous precedent. Do we really want the president to have the power to decide what laws are going to be enforced and what laws are not going to be enforced?
That sounds dangerously close to a dictatorship to me.
And in any event, there are many Americans that are not going to be able to keep their current policies no matter what Obama says. For example, just two hours after Obama announced his plan last week, the state of Washington announced that they would not be allowing insurance companies to extend their old health insurance plans if they don’t comply with Obamacare under any circumstances…
State Insurance Commissioner Mike Kreidler has rejected President Obama’s proposal to allow insurance companies to extend health insurance policies for people who have received notices that their policies will be cancelled at the end of the year.
Within two hours of President Obama’s news conference announcing the proposed administrative fix for Americans upset by their policy cancellations, Kreidler issued a statement rejecting the proposal.
“I understand that many people are upset by the notices they have recently received from their health plans and they may not need the new benefits [in the Affordable Care Act] today,” he said. “But I have serious concerns about how President Obama’s proposal would be implemented and more significantly, its potential impact on the overall stability of our health insurance market.”
“I do not believe his proposal is a good deal for the state of Washington,” Kreidler’s statement continued. “We will not be allowing insurance companies to extend their policies.”
How do you think the people of the state of Washington will respond to that?
Things are getting crazy out there, and the number of people that are losing their health insurance policies is absolutely stunning.
According to the Wall Street Journal, so far 106,185 Americans have enrolled in Obamacare since October 1st. Most of those that have successfully enrolled have done so through the state insurance exchanges. So far, only 26,794 Americans have signed up for health insurance using the federally run exchanges on HealthCare.gov.
Meanwhile, during that same time frame, 4.02 million Americans have had their health insurance policies cancelled.
So that means that the number of Americans with health insurance has actually decreased by 3,918,205 since October 1st.
Wasn’t Obamacare supposed to result in more Americans being covered?
And according to U.S. Senator Rand Paul, Obama not only knew that this would happen, he actually wrote the regulation that caused this to happen…
“I’m still learning about it. It’s 20,000 pages of regulations. The Bill was 2,000 pages and I didn’t realize this until this week, the whole idea of you losing or getting your insurance cancelled wasn’t in the original Obamacare. It was a regulation WRITTEN BY PRESIDENT OBAMA, three months later. So we had a vote, this is before I got up there. The Republicans had a vote to try to cancel that regulation so you COULDN’T BE CANCELLED, to grandfather everybody in. You know what the vote was? Straight party line. EVERY DEMOCRAT VOTED TO KEEP THE RULE THAT CANCELS YOUR INSURANCE.”
So now millions of Americans, including women battling cancer, are losing health insurance plans that they were depending upon.
Obamacare: Skyrocketing Health Insurance Premiums
How much more are you willing to pay for health insurance than you are paying right now?
Well, according to one study health insurance premiums for men are going to go up by an average of 99 percent under Obamacare and health insurance premiums for women are going to go up by an average of 62 percent under Obamacare.
And of course some groups are going to see increases that are much larger than that. For example, it is being projected that health insurance premiums for healthy 30-year-old men will rise by an average of 260 percent.
And there are some families out there that have already been hit with health insurance premium increases that are absolutely jaw-dropping. In a previous article, I included the example of one family down in Texas that has been hit with a 539% rate increase…
Obamacare is named the “Affordable Care Act,” after all, and the President promised the rates would be “as low as a phone bill.” But I just received a confirmed letter from a friend in Texas showing a 539% rate increase on an existing policy that’s been in good standing for years.
As the letter reveals (see below), the cost for this couple’s policy under Humana is increasing from $212.10 per month to $1,356.60 per month. This is for a couple in good health whose combined income is less than $70K — a middle-class family, in other words.
Obamacare: Enormous Deductibles And Huge Out-Of-Pocket Expenses For All
It isn’t just health insurance premiums that are going up either. Deductibles are going up too. In fact, just check out what one survey of Americans living in seven different states recently discovered…
Expenses for some policies can reach $6,350 for a single person and $12,700 per family, the most allowed by the health-care law, according to a survey by HealthPocket Inc. of seven states, including California and Ohio. That’s 26 percent higher than the average deductible in the seven states, and a scenario likely repeated across the country, said Kev Coleman, head of research and data at Sunnyvale, California-based HealthPocket.
That same article has a great quote from an elderly New Jersey resident. 82-year-old Larry Saphire thinks that if you have to pay a $5,000 deductible up front, “you might as well not have any insurance at all”…
“If you have to pay $5,000 upfront” when illness hits, “you might as well not have any insurance at all,” said Larry Saphire, 82, of West Orange, New Jersey, who shopped for coverage for his wife and two children, ages 16 and 21. “That’s not insurance.”
On California’s state-run exchange site, the standard low-premium “bronze” plan carries a $5,000 deductible per person, a $60 co-pay to see a doctor and a 30 percent fee, known as coinsurance, on hospital care. In Rhode Island, Blue Cross Blue Shield’s bronze plan has a $5,800 deductible while Missouri’s U.S.-run exchange offers plans by Anthem Blue Cross with the maximum-allowable $6,350 in out-of-pocket costs.
Obamacare: The Quality Of Care Is Going To Go Into The Toilet
A lot of Americans that are signing up for Obamacare are going to be in for a huge shock. Many of the best hospitals and many of the best doctors are not covered by their plans…
Meanwhile, sometime between March and June, the other shoe drops: People who bought exchange policies realize that the restricted networks insurers created to keep the premium costs low cut out the best hospitals and doctors. A newly insured child with cancer cannot get into a top pediatric hospital because her insurance has zero coverage for out-of-network emergency care. Tearful Mom goes on the evening news and says that she thought when they went on Obamacare, that meant they were safe, and why can’t I take my baby to Philadelphia Children’s Hospital, Mr. President?
Can you imagine being a parent in that situation?
In response, some hospitals are already filing suit over this. For instance, check out what is happening over in Seattle…
Seattle Children’s Hospital filed suit against Washington State’s Office of the Insurance Commissioner this week, after Obamacare implementation caused the hospital to be cut from four of the six insurance plans offered by the new Washington Health Benefit Exchange.
And even if you are on Medicare that does not mean that the quality of your care is going to stay the same either. As Reuters just reported, UnitedHealth is dumping “thousands of doctors” from their Medicare Advantage plans for the elderly because of Obamacare…
UnitedHealth Group dropped thousands of doctors from its networks in recent weeks, leaving many elderly patients unsure whether they need to switch plans to continue seeing their doctors, the Wall Street Journal reported on Friday.
The insurer said in October that underfunding of Medicare Advantage plans for the elderly could not be fully offset by the company’s other healthcare business. The company also reported spending more healthcare premiums on medical claims in the third quarter, due mainly to government cuts to payments for Medicare Advantage services.
In the United States, we already pay much more for health care than everyone else in the world, and we typically have to wait longer to see a doctor than most of the rest of the industrialized world does.
Now Obamacare is going to make all of this even worse, and the quality of the care that we receive is going to go downhill fast.
Obamacare: The Jobs Killer
A while back, Obama unilaterally made the decision to delay the implementation of the employer mandate until 2015.
That was probably a good political decision, because it would have been a huge political issue in the 2014 elections.
But the truth is that we won’t have to wait until 2015 for Obamacare to start killing jobs. In fact, according to CNBC it is already happening…
Approximately one-third of business decision-makers at companies with between 40 and 500 employees, say the health-care law has already increased their costs due to hikes in both the cost of insurance and compliance, according to a recent report from political-research firm Public Opinion Strategies. As a result, many business leaders say they are already making personnel decisions based on the Affordable Care Act.
Among franchised businesses, 27 percent report their company has replaced full-time workers with part-time workers and 31 percent have reduced worker hours. Among non-franchised businesses, 12 percent are replacing full-time workers with part-time workers or reducing hours. This is happening now, with more than a year before the mandate goes into effect; and undoubtedly, these numbers will rise as we approach next July’s “look back” period for tabulating workers’ hours.
It is kind of startling that we are already seeing employers make such big changes even though the employer mandate does not come into effect until 2015. You can find a very long list of some of the employers that have already either eliminated jobs or cut hours because of Obamacare right here.
Remember, this is just the tip of the iceberg. Once we get closer to the deadline things are going to get much, much worse.
At a time when the middle class desperately needs jobs, Obamacare is going to slaughter them.
And even if you are able to keep your current job, that does not mean that your health plan will remain the same. In fact, Forbes is projecting that a staggering 51 percent of all employment-based health insurance plans will be canceled and replaced with new ones.
Overall, Forbes is projecting that an astounding 93 million Americans will eventually lose their current health insurance policies due to Obamacare.
Obamacare: Providing Huge Incentives For Many Americans To Work Less And Make Less Money
Did you know that Obamacare is going to cause millions of Americans to want to keep their incomes under certain levels?
If you make too much money under Obamacare, you will miss out on some absolutely massive health care subsidies. The following is an excerpt from one of my previous articles…
The figures that you are about to see were calculated using the Kaiser Family Foundation subsidy calculator. These numbers apply to a husband and a wife that are both 62 years old.
A non-smoking, married couple living in San Francisco, California earning $63,000 a year will have to pay $20,318 a year for a silver plan under Obamacare and $12,647 a year for a bronze plan.
At $63,000, that couple would be making too much money to be eligible for a subsidy, so that couple will have to pay the total cost of whatever plan they choose by themselves.
But if that couple only made $62,000 a year, things would dramatically change.
The plans would still cost the same, but the couple would now be eligible for an Obamacare subsidy of $14,428.
So a silver plan would end up costing them only $5,890, and they would ultimately pay nothing for a bronze plan.
In other words, by reducing their income by $1,000, that couple would save $14,428 if they got a silver plan or they would save $12,647 if they got a bronze plan.
Isn’t that bizarre?
In the end, millions upon millions of middle class families will decide to go without health insurance entirely for one reason or another.
This will work great until they get into an accident or become seriously ill.
As I have discussed previously, approximately 60 percent of all personal bankruptcies in the United States are related to medical bills. And most of those bankruptcies actually happen to people that are supposedly “covered” by health insurance.
Obamacare is going to make all of this so much worse. Millions of middle class families will end up with no health insurance at all, and because so many of them are living paycheck to paycheck a single health emergency will be enough to send them hurtling down the path to financial oblivion.
If you get into an accident, a visit to the emergency room and a single night in the hospital can easily cost tens of thousands of dollars in many areas of the country.
If you get a serious illness such as cancer, the medical bills can be absolutely astronomical. For instance, there are many cancer patients that rack up medical bills well in excess of a million dollars by the time that they die.
Something desperately needs to be done about our horrible health care system. Unfortunately, Obamacare is going to make just about everything that is bad about our current system much, much worse.
And the American people are becoming increasingly disgusted and frustrated with Obamacare. According to Real Clear Politics, an average of recent opinion polls shows that the American people are opposed to Obamacare by an average margin of 14.2 percentage points.
So what do you think about Obamacare?
Please feel free to share your opinion by posting a comment below, and please share this information with as many people as you possibly can.
It is hard to find the words to adequately describe how much of a disaster Obamacare is turning out to be. The debut of Healthcare.gov has been probably the worst launch of a major website in history, millions of Americans are having their current health insurance policies canceled, millions of others are seeing the size of their health insurance premiums absolutely explode, and this new law is going to result in massive numbers of jobs being lost. It is almost as if Obamacare was specifically designed to wreck the U.S. economy. Not that what we had before Obamacare was great. In fact, I have long argued that the U.S. health care system is a complete and total train wreck. But now Obamacare is making everything that was bad about our system much, much worse. Americans are going to pay far more for health care, the quality of that care is going to go down, they are going to have to deal with far more medical red tape, and thousands upon thousands of U.S. employers are considering getting rid of the health plans that they offer to employees altogether due to Obamacare. If the U.S. health care system was a separate nation, it would be the 6th largest economy on the entire planet, and now Obamacare is going to absolutely cripple it. To say that Obamacare is an “economic catastrophe” would be a massive understatement.
Of course we were assured that it wouldn’t turn out this way. We were promised over and over that we were going to pay less for health care, get better coverage, and be able to keep our current health plans if we were pleased with them. The following is what Obama said at a rally in 2009…
“First of all, if you’ve got health insurance, you like your doctors, you like your plan, you can keep your doctor, you can keep your plan. Nobody is talking about taking that away from you.”
That was such a dramatic lie that even NBC News is turning on him. They discovered that Obama has known for three years that most people that rely on individual health insurance policies would not be able to keep them…
Buried in Obamacare regulations from July 2010 is an estimate that because of normal turnover in the individual insurance market, “40 to 67 percent” of customers will not be able to keep their policy. And because many policies will have been changed since the key date, “the percentage of individual market policies losing grandfather status in a given year exceeds the 40 to 67 percent range.”
That means the administration knew that more than 40 to 67 percent of those in the individual market would not be able to keep their plans, even if they liked them.
Pretty much everything that Obama told us when he was selling us on his plan has turned out to be a lie.
So what can we expect from Obamacare moving forward? The following are 10 signs that Obamacare is going to wreck the U.S. economy…
#1 It is being projected that millions upon millions of Americans are going to lose their current health insurance plans thanks to Obamacare. Most will be faced with the choice of either purchasing much more expensive health insurance or going uninsured. This will put even more stress on a middle class that is already disintegrating rapidly. The following is from the recent NBC News investigation mentioned above…
Four sources deeply involved in the Affordable Care Act tell NBC News that 50 to 75 percent of the 14 million consumers who buy their insurance individually can expect to receive a “cancellation” letter or the equivalent over the next year because their existing policies don’t meet the standards mandated by the new health care law. One expert predicts that number could reach as high as 80 percent. And all say that many of those forced to buy pricier new policies will experience “sticker shock.”
#2 The health insurance premium increases that some families are experiencing are absolutely mind boggling. According to Mike Adams of Natural News, one family in Texas just got hit with a 539% rate increase…
Obamacare is named the “Affordable Care Act,” after all, and the President promised the rates would be “as low as a phone bill.” But I just received a confirmed letter from a friend in Texas showing a 539% rate increase on an existing policy that’s been in good standing for years.
As the letter reveals (see below), the cost for this couple’s policy under Humana is increasing from $212.10 per month to $1,356.60 per month. This is for a couple in good health whose combined income is less than $70K — a middle-class family, in other words.
According to NBC News, an elderly couple in North Carolina was hit with a similar rate increase…
George Schwab, 62, of North Carolina, said he was “perfectly happy” with his plan from Blue Cross Blue Shield, which also insured his wife for a $228 monthly premium. But this past September, he was surprised to receive a letter saying his policy was no longer available. The “comparable” plan the insurance company offered him carried a $1,208 monthly premium and a $5,500 deductible.
Many Americans that were formerly in favor of Obamacare are now against it after they have seen what it is going to do to their budgets. The following is one example of this from a recent Los Angeles Times article…
Pam Kehaly, president of Anthem Blue Cross in California, said she received a recent letter from a young woman complaining about a 50% rate hike related to the healthcare law.
“She said, ‘I was all for Obamacare until I found out I was paying for it,'” Kehaly said.
#3 Obamacare actually includes incentives for people to work less and make less money. The following is one example from a recent article by Sean Davis…
In California, a couple earning $64,000 a year would not qualify for health care subsidies. A bronze plan for them through Kaiser would cost them about $1,300 each month, or $15,600 a year. But if that same family earned just $2,000 less, it would qualify for over $14,000 in annual health care subsidies, dropping their premiums for that same Kaiser plan to less than $100 per month.
#4 Thankfully the employer mandate in Obamacare was delayed for a little while, but it will ultimately result in widespread job losses all over the country. In fact, we are already starting to see this happen. The following is from a recent article in the Economist…
BEFORE the recession, Richard Clark’s cleaning company in Florida had 200 employees, about half of them working full time. These days it has about 150, with 80% part-time. The downturn explains some of this. But Mr Clark also blames Barack Obama’s health reform. When it comes into effect in January 2015, Obamacare will require firms with 50 or more full-time employees to offer them affordable health insurance or pay a fine of $2,000-3,000 per worker. That is a daunting prospect for firms that do not already offer coverage. But for many, there is a way round the law.
Mr Clark says he is “very careful with the threshold”. To keep his full-time workforce below the magic number of 50, he is relying more on part-timers. He is not alone. More than one in ten firms surveyed by Mercer, a consultancy—and one in five retail and hospitality companies—say they will cut workers’ hours because of Obamacare. A hundred part-timers can flip as many burgers as 50 full-timers, and the former will soon be much cheaper.
You can find a very long list of some of the employers that have either eliminated jobs or cut hours because of Obamacare right here.
#5 Even if you are able to keep your job, there is no guarantee that your employer will continue to offer health insurance as an employee benefit. In fact, it is being reported that large numbers of employers have already decided to no longer offer health insurance to their employees because of Obamacare.
#6 According to CBS News, so far the number of people that have had their health insurance policies canceled is more than three times greater than the number of people that have signed up for new policies under Obamacare…
CBS News has learned more than two million Americans have been told they cannot renew their current insurance policies — more than triple the number of people said to be buying insurance under the new Affordable Care Act, commonly known as Obamacare.
#7 If what is going on in New York is any indication, those that are signing up for health insurance under Obamacare are going to have a really, really hard time finding a doctor…
New York doctors are treating ObamaCare like the plague, a new survey reveals.
A poll conducted by the New York State Medical Society finds that 44 percent of MDs said they are not participating in the nation’s new health-care plan.
Another 33 percent say they’re still not sure whether to become ObamaCare providers.
Only 23 percent of the 409 physicians queried said they’re taking patients who signed up through health exchanges.
#8 Obamacare is turning out to be a gold mine for hackers and identity thieves. The personal information of millions of Americans could potentially end up being compromised. According to CNN, Healthcare.gov was found to be teeming with security holes…
The Obamacare website has more than annoying bugs. A cybersecurity expert found a way to hack into users’ accounts.
Until the Department of Health fixed the security hole last week, anyone could easily reset your Healthcare.gov password without your knowledge and potentially hijack your account.
And according to the New York Post, Healthcare.gov has been designed so badly from a security standpoint that it might have to be “rebuilt from scratch”…
The chairman of the House Intelligence Committee said ObamaCare’s website, already a tangled mess, might need to be rebuilt from scratch to to protect against cyber-thieves because he fears it’s not a safe place right now for health-care consumers to deposit their personal information.
“I know that they’ve called in another private entity to try to help with the security of it. The problem is, they may have to redesign the entire system,” Rep. Mike Rogers said on Sunday on CNN’s “State of the Union” political talk show. “The way the system is designed, it is not secure.”
#9 As I noted in a previous article, approximately 60 percent of all personal bankruptcies in the United States are related to medical bills. Because millions of Americans are now losing their health insurance policies and millions of others will choose to pay the fine rather than sign up for Obamacare, more Americans than ever will find themselves overwhelmed with medical bills when they get seriously sick. This will result in even more personal bankruptcies.
#10 In the end, the burden for paying for the subsidies that Obamacare offers is going to overwhelmingly fall on the taxpayers. This is going to cause our nightmarish national debt to get even worse. Peter Schiff recently explained why this is going to happen…
It is also ironic that high-deductible, catastrophic plans are precisely what young people should be buying in the first place. They are inexpensive because they provide coverage for unlikely, but expensive, events. Routine care is best paid for out-of-pocket by value conscious consumers. But Obamacare outlaws these plans, in favor of what amounts to prepaid medical treatment that shifts the cost of services to taxpayers. In such a system, patients have no incentive to contain costs. Since the biggest factor driving health care costs higher in the first place has been the over use of insurance that results from government-provided tax incentives, and the lack of cost accountability that results from a third-party payer system, Obamacare will bend the cost curve even higher. The fact that Obamacare does nothing to rein in costs while providing an open-ended insurance subsidy may be good news for hospitals and insurance companies, but it’s bad news for taxpayers, on whom this increased burden will ultimately fall.
So what do you think of Obamacare?
Has it directly affected your life yet?
Please feel free to share your thoughts by posting a comment below…
Barack Obama promised to fundamentally transform America, and when it comes to health care he has definitely kept his promise. Thanks to Obamacare, health care spending is up, health insurance premiums are up, the number of hours Americans are working is down and employer-based health insurance is becoming an endangered species. Of course employer-based health insurance will not disappear completely any time soon, but it has been steadily shrinking for over a decade, and Obamacare will greatly accelerate that decline. If you go back to 1999, 64.1 percent of all Americans were covered by employment-based health insurance. That was pretty good. Today, only 54.9 percent of all Americans are covered by employment-based health insurance, and now thousands upon thousands of U.S. employers are considering reducing the scope of the health plans they offer to employees or eliminating them altogether due to Obamacare. If you are thinking that this sounds like a potential nightmare for millions of Americans families, you would be exactly right.
There have already been widespread reports of companies dropping health insurance, but nobody knows for sure how widespread the carnage will be. According to Businessweek, the surveys that have been done up to this point have come up with widely varying results…
A Deloitte study last year suggested 10 percent of employers would stop offering group health plans. A widely criticized McKinsey report from 2011 put the number as high as one-third. The Congressional Budget Office’s latest projections suggest 8 million fewer people will be covered by employer plans five years from now under the ACA than without it. Many of them will get policies through health insurance exchanges instead.
But what everyone does agree on is that employer-based health coverage will continue to diminish.
And we are already watching this happen right in front of our eyes. Just this week, the Wall Street Journal reported that the largest security guard firm in the United States is dropping health coverage for 55,000 employees…
The nation’s largest provider of security guards plans to discontinue its lowest-cost health plans and steer roughly 55,000 workers to new government-sponsored insurance exchanges for coverage next year, in the latest sign of the fraying ties between employment and health care.
The U.S. arm of Sweden’s Securitas AB is among more than 1,200 employers that offer the kind of bare-bones health plans that must be phased out beginning Jan. 1 under the health-care law. Nearly four million people are enrolled in these so-called mini-med plans, which cap benefits to participants, sometimes at as little as $3,000 a year.
“The mini-meds go away and we’re not replacing them,” said Jim McNulty, a spokesman for Securitas’s U.S. operation. “Their option is to go to the exchanges.”
Other big employers, including Darden Restaurants Inc., Home Depot Inc. and Trader Joe’s Co., say they will stop offering health insurance to part-time workers, and will direct those employees to the state exchanges. Darden, Home Depot and Trader Joe’s previously offered mini-meds to their part timers.
Speaking of Trader Joe’s, I wrote about how they are eliminating health coverage for part-time workers the other day. Instead of providing health insurance for their part-time workers, Trader Joe’s will be writing them a check and pushing them on to the Obamacare exchanges…
Trader Joe’s, the grocer once lauded for providing health care coverage to its part-time workers, is about to push those employees off its plan.
According to a memo obtained by the Huffington Post, the company will stop covering employees who work less than 30 hours per week.
The change is set for the start of 2014. Instead of insurance, workers instead will get a check for $500 in January.
“Depending on income you may earn outside of Trader Joe’s, we believe that with the $500 from Trader Joe’s and the tax credits available under the [Affordable Care Act (ACA)], many of you should be able to obtain health care coverage at very little if any net cost to you,” said Trader Joe CEO Dan Bane in the memo.
And this is a huge reason why the shift from full-time work to part-time work in America has accelerated this year. Obamacare creates an incentive for companies to have more part-time workers and less full-time workers. In fact, almost all of the jobs that have been “created” by the U.S. economy in 2013 have been part-time jobs.
But it is incredibly difficult to try to support a family on a part-time job. Sadly, the quality of our jobs continues to decline rapidly and only 47 percent of all adults have a full-time job in America today. This is only going to continue to get even worse under Obamacare.
As a result of these trends, more Americans are going to be forced to go out and buy health insurance “on the individual market”. When they do, they are likely to be in for a really nasty surprise…
Andy and Amy Mangione of Louisville, Ky. and their two boys are just the kind of people who should be helped by ObamaCare. But they recently got a nasty surprise in the mail.
“When I saw the letter when I came home from work,” Andy said, describing the large red wording on the envelope from his insurance carrier, “(it said) ‘your action required, benefit changes, act now.’ Of course I opened it immediately.”
It had stunning news. Insurance for the Mangiones and their two boys,which they bought on the individual market, was going to almost triple in 2014 — from $333 a month to $965.
The insurance carrier made it clear the increase was in order to be compliant with the new health care law.
Are you ready to have your health insurance premiums potentially double or triple?
In other cases, families are discovering that health insurance companies are simply cancelling their health insurance plans…
Across the country, insurers are sending out ObamaCare-induced health plan death notices to untold tens of thousands of other customers in the individual market. Twitter users are posting their ObamaCare cancellation notices and accompanying rate increases:
Linda Deright posted her letter from Regency of Washington state: “63 percent jump, old policy of 15 yrs. cancelled.” Karen J. Dugan wrote: “Received same notice from Blue Shield CA for our small business. Driving into exchange and no info since online site is down.” Chris Birk wrote: “Got notice from BCBS that my current health plan is not ACA compliant. New plan 2x as costly for worse coverage.” Small-business owner Villi Wilson posted his letter from HMSA Blue Cross Blue Shield canceling his individual plan and added: “I thought Obama said if I like my health care plan I can keep my health care plan.”
In fact, this even happened to one member of Congress. U.S. Representative Cory Gardner had purchased health insurance on his own because he wanted to experience what his constituents were going through, and he recently got a letter informing him that his old plan had been “discontinued”…
“After my current plan is discontinued,” he wrote last week, “the closest comparable plan through our current provider will cost over 100 percent more, going from roughly $650 a month to $1,480 per month.” He now carries his ObamaCare cancellation notice with him as hardcore proof of the Democrats’ ultimate deception.
Is this what Obama was talking about when he promised that we could keep our old health insurance plans if we were happy with them?
In the end, millions upon millions of us are going to get pushed on to the Obamacare health insurance exchanges.
We were promised that there would be lots of competition and that prices would be reasonable.
Unfortunately, in some areas of the country it turns out that the “exchanges” are turning out to be “monopolies” where consumers will only have one company to choose from…
“Although seven insurance companies currently operate in North Carolina, under the new Obamacare exchanges, those options will dwindle down to one in the majority of counties,” Ellmers said Thursday following the disclosure of figures by federal health officials showing that more than 60 percent of North Carolina counties will have only one insurance provider option under Obamacare: Blue Cross Blue Shield.
“The whole point of an online marketplace was to provide options, so North Carolinians could go online, compare prices, and choose plans from different companies. That is how competition is supposed to work!,” Ellmers said.
Beginning October 1 under Obamacare, Blue Cross Blue Shield will be the only health insurance provider serving the entire state of North Carolina in the new Obamacare exchanges, serving all 100 of the state’s counties. Its competitor Coventry Health Care, which is owned by Aetna, will only reach 39 counties.
That leaves 61 counties, or 61 percent of all the state’s counties, in a Blue Cross Blue Shield-only zone.
Not only that, but a lot of these exchanges are not even going to be ready to function properly on October 1st. For example, according to the Washington Post, the D.C. “health marketplace” is a complete and total mess at this point…
Just days away from launch, the District of Columbia’s health marketplace is announcing a pretty significant delay.
While the D.C. Health Link will launch a Web site on October 1, shoppers will not have access to the their premium prices until mid-November. The delay comes after the District marketplace discovered “a high error rate” in calculating the tax credits that low- and middle-income people will use to purchase insurance on the marketplace.
The insurance marketplaces, if working as plan, are supposed to spit out an estimate for a tax credit after a shopper enters in some basic information about where she lives and how much she earns. In the District, that won’t happen next month. Instead, the eligibility determination will be made “off-line by experts” by early November.
So who is going to benefit from this new system?
Well, it turns out that the health insurance companies will greatly benefit. Health insurance companies helped write Obamacare, and their stock prices have absolutely soared since Obamacare was signed into law. If you doubt this, just check out the amazing charts in this article.
Not that they were hurting under the old system either. They have been raking in gigantic mountains of cash for years while trying to provide as little health care as possible. For much more on this, please see my previous article entitled “50 Signs That The U.S. Health Care System Is A Gigantic Money Making Scam“.
For the rest of us, Obamacare is going to be even worse than the old system. A 2013 Health Care Survey that polled 200 top health care professionals discovered the following about what they believe Obamacare will bring…
— 53 percent, “Quality of health insurance policies will suffer.”
— 51 percent, “Quality of care will go down.”
— 49 percent, “The law is overly complicated.”
— 42 percent, “Insurance exchanges will be poorly managed.”
— 37 percent, “The law still allows insurance companies to be the middleman.”
— 32 percent, “Too complex for businesses.”
— 19 percent, “Americans will die earlier.”
So Americans are going to pay more, get worse care, have more paperwork and a more complicated system, and they are likely to die younger too?
Wow, that sounds like a great deal.
Where do we sign up?
The middle class American worker is in danger of becoming an endangered species. The politicians are not telling you the truth, and the mainstream media is certainly not telling you the truth, but the reality is that there is nothing but bad news on the horizon for workers in the United States. In the old days, when the big corporations that dominate our society did well, that also meant good things for American workers since those corporations would need more of us to work for them. But in the emerging one world economic system that our economy is being merged into, those corporations have other choices now. For instance, the big corporations can now choose to limit the number of “expensive” American workers that they employ by shipping millions of jobs to the other side of the world. And from their perspective, it makes perfect sense. They can make much bigger profits by hiring people on the other side of the planet to work for them for less than a dollar an hour. If they can get good production out of those people, then why should they hire Americans for ten to twenty times as much, plus have to give those Americans health insurance and other benefits? Another major factor in the slow, agonizing death of the American worker is technology. We live during a period when technology is advancing at a pace that is almost unimaginable at the same time that it is steadily becoming cheaper and cheaper. That means that it is going to become easier and easier for companies to replace workers with robots and computers. As I have written about previously, it is being projected that our economy will lose millions of jobs to technology in the coming years. Yes, some of us will still be needed to help build the robots and the computers, but not all of us will. And of course the overall general weakness of the economy is not helping matters either. The American people inherited the greatest economic machine in the history of the world, and we have wrecked it. Decades of very foolish decisions have resulted in the period of steady economic decline that we are experiencing now.
America is simply not the economic powerhouse that it once was. Back in 2001, the U.S. economy accounted for 31.8 percent of global GDP. By 2011, the U.S. economy only accounted for 21.6 percent of global GDP. That is a collapse any way that you want to look at it.
Today, American workers are living in an economy that is rapidly declining, and their jobs are steadily being stolen by robots, computers and foreign workers that live in countries where it is legal to pay slave labor wages. Politicians from both political parties refuse to do anything to stop the bleeding because they think that the status quo is working just great.
So don’t expect things to get better any time soon.
The following are 10 amazing charts that demonstrate the slow, agonizing death of the American worker…
#1 Wages And Salaries As A Percentage Of GDP
As you can see, wages as a percentage of GDP are hovering near an all-time record low. That means that American workers are bringing home a smaller share of the economic pie than ever before.
#2 Average Annual Hours Worked Per Employed Person In The United States
We are an economy that is rapidly trading good paying full-time jobs for low paying part-time jobs. The decline in average annual hours worked that we have witnessed represents the equivalent of losing millions of jobs. There has been an explosion of “the working poor” in the United States, and this trend is probably only going to accelerate in the years to come.
#3 Manufacturing Employment
As you can see, there are less Americans working in manufacturing today than there was in 1950 even though the population of the country has more than doubled since then. The United States has lost more than 56,000 manufacturing facilities since 2001, and yet our politicians stand around and do nothing about it.
#4 Employment-Population Ratio
This is one of my favorite charts. It shows that there has been absolutely no employment recovery at all since the end of the last recession. The percentage of working age Americans that have a job has stayed under 59 percent for 44 months in a row. How much worse will things get when the next major economic downturn strikes?
#5 Labor Force Participation Rate
This is how the Obama administration is getting the “unemployment rate” to magically go down. They are pretending that millions upon millions of Americans simply do not want to work anymore. As you will notice, the decline of the labor force participation rate has accelerated greatly since Barack Obama entered the White House.
#6 Duration Of Unemployment
The average amount of time that it takes an unemployed worker to find a new job has declined slightly, but it is still far above normal historical levels. It is a crying shame that it takes the average unemployed worker two-thirds of a year to find a new job, but this is the new economic reality that we are all living in.
#7 Delinquency Rate On Residential Mortgages
Since there are not enough jobs for all of us, and since our wages are not rising as rapidly as the cost of living is, a whole bunch of us are falling behind on our mortgages. As you can see, the mortgage delinquency rate has only dropped slightly and is still way, way above typical levels.
#8 New Homes Sold
American workers also don’t have enough money to go out and buy new homes either. Yes, new home sales have rebounded slightly this year, but we are nowhere near where we used to be.
#9 Consumer Credit
Millions of American families continue to resort to going into debt in a desperate attempt to make ends meet. After a slight interruption during the last recession, consumer credit once again is growing at a frightening pace.
#10 Self-Employment At A Record Low
Since there aren’t enough jobs for everyone, why aren’t more Americans trying to start their own businesses? Well, the reality of the matter is that the government has made it exceedingly difficult to start your own business today. Taxes, rules, regulations and red tape are choking the life out of millions of small businesses in the United States. As a result, the percentage of self-employed Americans is at a record low.
As all of these long-term trends continue, the middle class will continue to shrink, poverty in America will continue to explode and government dependence will continue to rise.
The numbers don’t lie. Today, the number of Americans on Social Security Disability now exceeds the entire population of Greece, and the number of Americans on food stamps now exceeds the entire population of Spain.
We are in the midst of a horrifying economic collapse, and the next major wave of that collapse is rapidly approaching.
Are you ready?
The U.S. health care system is a giant money making scam that is designed to drain as much money as possible out of all of us before we die. In the United States today, the health care industry is completely dominated by government bureaucrats, health insurance companies and pharmaceutical corporations. The pharmaceutical corporations spend billions of dollars to convince all of us to become dependent on their legal drugs, the health insurance companies make billions of dollars by providing as little health care as possible, and they both spend millions of dollars to make sure that our politicians in Washington D.C. keep the gravy train rolling. Meanwhile, large numbers of doctors are going broke and patients are not getting the care that they need. At this point, our health care system is a complete and total disaster. Health care costs continue to go up rapidly, the level of care that we are receiving continues to go down, and every move that our politicians make just seems to make all of our health care problems even worse. In America today, a single trip to the emergency room can easily cost you $100,000, and if you happen to get cancer you could end up with medical bills in excess of a million dollars. Even if you do have health insurance, there are usually limits on your coverage, and the truth is that just a single major illness is often enough to push most American families into bankruptcy. At the same time, hospital administrators, pharmaceutical corporations and health insurance company executives are absolutely swimming in huge mountains of cash. Unfortunately, this gigantic money making scam has become so large that it threatens to collapse both the U.S. health care system and the entire U.S. economy.
The following are 50 signs that the U.S. health care system is a massive money making scam that is about to collapse…
#1 Medical bills have become so ridiculously large that virtually nobody can afford them. Just check out the following short excerpt from a recent Time Magazine article. One man in California that had been diagnosed with cancer ran up nearly a million dollars in hospital bills before he died…
By the time Steven D. died at his home in Northern California the following November, he had lived for an additional 11 months. And Alice had collected bills totaling $902,452. The family’s first bill — for $348,000 — which arrived when Steven got home from the Seton Medical Center in Daly City, Calif., was full of all the usual chargemaster profit grabs: $18 each for 88 diabetes-test strips that Amazon sells in boxes of 50 for $27.85; $24 each for 19 niacin pills that are sold in drugstores for about a nickel apiece. There were also four boxes of sterile gauze pads for $77 each. None of that was considered part of what was provided in return for Seton’s facility charge for the intensive-care unit for two days at $13,225 a day, 12 days in the critical unit at $7,315 a day and one day in a standard room (all of which totaled $120,116 over 15 days). There was also $20,886 for CT scans and $24,251 for lab work.
#2 This year the American people will spend approximately 2.8 trillion dollars on health care, and it is being projected that Americans will spend 4.5 trillion dollars on health care in 2019.
#3 The United States spends more on health care than Japan, Germany, France, China, the U.K., Italy, Canada, Brazil, Spain and Australia combined.
#4 If the U.S. health care system was a country, it would be the 6th largest economy on the entire planet.
#5 Back in 1960, an average of $147 was spent per person on health care in the United States. By 2009, that number had skyrocketed to $8,086.
#6 Why does it cost so much to stay in a hospital today? It just does not make sense. Just check out these numbers…
In 1942, Christ Hospital, NJ charged $7 per day for a maternity room. Today it’s $1,360.
#7 Approximately 60 percent of all personal bankruptcies in the United States are related to medical bills.
#8 One study discovered that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
#9 The U.S. health care industry has spent more than 5 billion dollars on lobbying our politicians in Washington D.C. since 1998.
#10 According to the Association of American Medical Colleges, the U.S. is currently experiencing a shortage of at least 13,000 doctors. Unfortunately, that shortage is expected to grow to 130,000 doctors over the next 10 years.
#11 The state of Florida is already dealing with a very serious shortage of doctors…
Brace yourself for longer lines at the doctor’s office.
Whether you’re employed and insured, elderly and on Medicare, or poor and covered by Medicaid, the Florida Medical Association says there’s a growing shortage of doctors — especially specialists — available to provide you with medical care.
And if the Florida Legislature goes along with Gov. Rick Scott’s recommendation to offer Medicaid coverage to an additional 1 million Floridians — part of the Affordable Care Act that takes effect next January — the FMA says that shortage will only get worse.
#12 At this point, approximately 40 percent of all doctors in the United States are 55 years of age or older.
#13 In America today, many hospital executives make absolutely ridiculous amounts of money…
In December, when the New York Times ran a story about how a deficit deal might threaten hospital payments, Steven Safyer, chief executive of Montefiore Medical Center, a large nonprofit hospital system in the Bronx, complained, “There is no such thing as a cut to a provider that isn’t a cut to a beneficiary … This is not crying wolf.”
Actually, Safyer seems to be crying wolf to the tune of about $196.8 million, according to the hospital’s latest publicly available tax return. That was his hospital’s operating profit, according to its 2010 return. With $2.586 billion in revenue — of which 99.4% came from patient bills and 0.6% from fundraising events and other charitable contributions — Safyer’s business is more than six times as large as that of the Bronx’s most famous enterprise, the New York Yankees. Surely, without cutting services to beneficiaries, Safyer could cut what have to be some of the Bronx’s better non-Yankee salaries: his own, which was $4,065,000, or those of his chief financial officer ($3,243,000), his executive vice president ($2,220,000) or the head of his dental department ($1,798,000).
#14 Health insurance administration expenses account for 8 percent of all health care costs in the United States each year. In Finland, health insurance administration expenses account for just 2 percent of all health care costs each year.
#15 If you can believe it, the U.S. ambulance industry makes more money each year than the movie industry does.
#16 All over America, people are reporting huge health insurance premium increases thanks to Obamacare. The following example is from a recent article by Robert Wenzel…
A California small businessman tells me that he switched healthcare insurance carriers in 2012. The monthly premium for him and his wife was about $400, but when he received his first bill in January of this year it was for $1,200. He hasn’t been to a doctor in years, his wife has only gone for minor care.
Apparently there is some clause in the Affordable Healthcare Act that results in health insurance firms using a new method to calculate premiums. Those who have health insurance plans that have been in effect since at least 2010 are grandfathered under the old calculation method, but insurance carriers are using a new formula for new plans.
#17 Blue Shield of California has announced that it wants to raise health insurance premiums by up to 20 percent this year in an effort to keep up with rising health costs.
#18 Aetna’s CEO says that health insurance premiums for many Americans will double when the major provisions of Obamacare go into effect in 2014.
#19 Close to 10 percent of all U.S. employers plan to drop health coverage completely when the major provisions of Obamacare go into effect in 2014.
#20 According to a survey conducted by the Doctor Patient Medical Association, 83 percent of all doctors in the United States have considered leaving the profession because of Obamacare.
#21 Approximately 16,000 new IRS agents will be hired to help oversee the implementation of Obamacare, and the Obama administration has given the IRS 500 million extra dollars “outside the normal appropriations process” to help the IRS with their new duties.
#22 During 2013, Americans will spend more than 280 billion dollars on prescription drugs.
#23 Prescription drugs cost about 50% more in the United States than they do in other countries.
#24 In the United States today, prescription painkillers kill more Americans than heroin and cocaine combined.
#25 Nearly half of all Americans now use prescription drugs on a regular basis according to the CDC. Not only that, the CDC also says that approximately one-third of all Americans use two or more pharmaceutical drugs on a regular basis, and more than ten percent of all Americans use five or more pharmaceutical drugs on a regular basis.
#26 The percentage of women taking antidepressants in America is higher than in any other country in the world.
#27 In 2010, the average teen in the U.S. was taking 1.2 central nervous system drugs. Those are the kinds of drugs which treat conditions such as ADHD and depression.
#28 Children in the United States are three times more likely to be prescribed antidepressants as children in Europe are.
#29 There were more than two dozen pharmaceutical companies that made over a billion dollars in profits during 2008.
#30 According to the CDC, approximately three quarters of a million people a year are rushed to emergency rooms in the United States because of adverse reactions to pharmaceutical drugs.
#31 According to a report by Health Care for America Now, America’s five biggest for-profit health insurance companies ended 2009 with a combined profit of $12.2 billion.
#32 The top executives at the five largest for-profit health insurance companies in the United States combined to bring in nearly $200 million in total compensation for 2009.
#33 The chairman of Aetna, the third largest health insurance company in the United States, brought in a staggering $68.7 million during 2010. Ron Williams exercised stock options that were worth approximately $50.3 million and he raked in an additional $18.4 million in wages and other forms of compensation. The funny thing is that he left the company and didn’t even work the entire year.
#34 It turns out that the financial assistance that Barack Obama promised would be provided for those with “pre-existing conditions” under Obamacare is already being shut down because of a lack of funding…
Tens of thousands of Americans who cannot get health insurance because of preexisting medical problems will be blocked from a program designed to help them because funding is running low.
Obama administration officials said Friday that the state-based “high-risk pools” set up under the 2010 health-care law will be closed to new applicants as soon as Saturday and no later than March 2, depending on the state.
#35 In America today, you are 64 times more likely to be killed by a doctor than you are by a gun.
#36 People living in the United States are three times more likely to have diabetes than people living in the United Kingdom.
#37 Today, people living in Puerto Rico have a greater life expectancy than people living in the United States do.
#38 According to OECD statistics, Americans are twice as obese as Canadians are.
#39 Greece has twice as many hospital beds per person as the United States does.
#40 The state of California now ranks dead last out of all 50 states in the number of emergency rooms per million people.
#41 According to a doctor interviewed by Fox News, “a gunshot wound to the head, chest or abdomen” will cost $13,000 at his hospital the moment the victim comes in the door, and then there will be significant additional charges depending on how bad the wound is.
#42 It has been estimated that hospitals overcharge Americans by about 10 billion dollars every single year.
#43 One trained medical billing advocate says that over 90 percent of the medical bills that she has audited contain “gross overcharges“.
#44 It is not uncommon for insurance companies to get hospitals to knock their bills down by up to 95 percent, but if you are uninsured or you don’t know how the system works then you are out of luck.
#45 According to a study conducted by Deloitte Consulting, a whopping 875,000 Americans were “medical tourists” in 2010.
#46 Today, there are more than 56 million Americans on Medicaid, and it is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
#47 Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid.
#48 Today, there are more than 50 million Americans on Medicare, and that number is projected to grow to 73.2 million in 2025.
#49 When Medicare was first established by Congress, it was estimated that it would cost the federal government $12 billion a year by the time 1990 rolled around. Instead, it cost the federal government $110 billion in 1990, and it will cost the federal government close to $600 billion this year.
#50 Even if you do have health insurance, that is no guarantee that medical bills will not bankrupt you. Just check out what a recent Time Magazine article says happened to one unfortunate couple from Ohio that actually did have health insurance…
When Sean Recchi, a 42-year-old from Lancaster, Ohio, was told last March that he had non-Hodgkin’s lymphoma, his wife Stephanie knew she had to get him to MD Anderson Cancer Center in Houston. Stephanie’s father had been treated there 10 years earlier, and she and her family credited the doctors and nurses at MD Anderson with extending his life by at least eight years.
Because Stephanie and her husband had recently started their own small technology business, they were unable to buy comprehensive health insurance. For $469 a month, or about 20% of their income, they had been able to get only a policy that covered just $2,000 per day of any hospital costs. “We don’t take that kind of discount insurance,” said the woman at MD Anderson when Stephanie called to make an appointment for Sean.
Stephanie was then told by a billing clerk that the estimated cost of Sean’s visit — just to be examined for six days so a treatment plan could be devised — would be $48,900, due in advance.
By the way, that hospital down in Houston made a profit of 531 million dollars in one recent year.
So what can be done about all of this?
Well, the truth is that the status quo is a complete and total disaster, and every “solution” being promoted by politicians from both major political parties would only make things worse.
In the end, the U.S. health care system needs to be rebuilt from the ground up, but we all know that is not going to happen.
Instead, our politicians and the health care industry will just find additional ways to extract money from all of us, and the level of care that we all get will continue to decline.
If you don’t believe this, just check out what Paul Krugman of the New York Times had to say recently…
We’re going to need more revenue…Surely it will require some sort of middle class taxes as well.. We won’t be able to pay for the kind of government the society will want without some increase in taxes… on the middle class, maybe a value added tax…And we’re also going to have to make decisions about health care, doc pay for health care that has no demonstrated medical benefits . So the snarky version…which I shouldn’t even say because it will get me in trouble is death panels and sales taxes is how we do this.
Others are urging us to become more like Europe.
But do we really want what they have in the UK?…
Sick children are being discharged from NHS hospitals to die at home or in hospices on controversial ‘death pathways’.
Until now, end of life regime the Liverpool Care Pathway was thought to have involved only elderly and terminally-ill adults.
But the Mail can reveal the practice of withdrawing food and fluid by tube is being used on young patients as well as severely disabled newborn babies.
One doctor has admitted starving and dehydrating ten babies to death in the neonatal unit of one hospital alone.
Writing in a leading medical journal, the physician revealed the process can take an average of ten days during which a baby becomes ‘smaller and shrunken’.
In the end, my philosophy is just to avoid the U.S. health care system as much as possible. Most doctors are just trained to do two things – prescribe drugs and cut you open. In an emergency situation where you are about to die, those may be your best options, but otherwise I would just as soon avoid the gigantic money making scam that the U.S. health care industry has become.
But just don’t take my word for it. The following is some very sound advice from Dr. Robert S. Dotson…
Avoid contact with the existing health care system as far as possible. Yes, emergencies arise that require the help of physicians, but by and large one can learn to care for one’s own minor issues. Though it is flawed, the internet has been an information leveler for the masses and permits each person to be his or her own physician to a large degree. Take advantage of it! Educate yourself about your own body and learn to fuel and maintain it as you would an expensive auto or a pet poodle. One does not need a medical degree to:
1. avoid excessive use of tobacco or alcohol or, for that matter, caffeine;
2. avoid poisons like fluoride, aspartame, high fructose corn syrup, and addictive drugs (legal or illicit);
3. avoid unnecessary and potentially lethal imaging studies (TSA’s radiation pornbooths, excessive mammography, repetitive CT scans – exposure to all significantly increases cancer risk);
4. avoid excessive cell phone use and exposure to other forms of EMR pollution where possible (the NSA is recording everything you say and text anyway);
5. avoid daily fast food use and abuse (remember: pink slime and silicone) ;
6. avoid untested GM foods (do you really want to become “Roundup Ready?”):
7. avoid most vaccinations and pharmaceutical agents promoted by the establishment;
8. avoid risky behaviors (and, we do not need a bunch of Nanny State bureaucrats to define and police these);
9. exercise moderately;
10. get plenty of sleep;
11. drink plenty of good quality water (buy a decent water filter to remove fluoride, chloride, and heavy metals);
12. wear protective gear at work and play where appropriate (helmets, eye-shields, knee and elbow pads, etc.):
13. seek out locally-grown, whole, organic foods and support your local food producers;
14. take appropriate nutritional supplements (multi-vitamins, Vitamin C, Vitamin D3);
15. switch off the TV and the mainstream media it represents;
16. educate yourself while you can;
17. QUESTION AUTHORITY!
Doing these simple, common-sense things will add healthy years to a person’s life and help one avoid most medical encounters during his or her allotted time on earth.
So what do you think?
Do you believe that the U.S. health care system is a gigantic money making scam that is about to collapse?
Please feel free to post a comment with your thoughts below…
Did you know that median household income in the United States is lower today than it was when the last recession supposedly ended? If we are in the middle of an “economic recovery”, how can this possibly be happening? Stunning new statistics compiled by Sentier Research show that the U.S. economy is not nearly as healthy as we have been led to believe. According to the study that Sentier Research has just released, median household income in the United States was sitting at $55,470 back in January 2000. In December 2007, when the recession began, it was sitting at $54,916. In June 2009, when the recession supposedly ended, it was sitting at $53,508. Today, it is sitting at $50,964. This is a long-term trend that is definitely going in the wrong direction. The fact that median household income in the U.S. is now 4.8 percent lower than it was when the last recession ended is incredibly disturbing, especially since all of the things that we buy on a regular basis just keep going up in price. Food, gas, electricity, car insurance and health insurance all cost a whole lot more today than they did back in the year 2000, and yet median household income has dropped 8.1 percent since that time. So what does all of this mean? It means that American families ARE getting poorer.
Yes, the stock market has been soaring, corporate profits have set all-time records in recent years and the big Wall Street banks that were showered with bailout money are absolutely thriving.
But there has been no economic recovery on “Main Street”.
According to the Sentier Research report mentioned above, incomes have been declining in all geographic regions of the country and in all sectors of the economy….
-Median household income for the self-employed has fallen 9.4 percent since June 2009.
-Median household income for private sector employees has fallen 4.5 percent since June 2009.
-Median household income for government workers has fallen 3.5 percent since June 2009.
-Median household income for Americans living in the West has fallen 8.5 percent since June 2009.
-Median household income for Americans living in the Northeast has fallen 4.9 percent since June 2009.
-Median household income for Americans living in the South has also fallen 4.9 percent since June 2009.
-Median household income for Americans living in the Midwest has fallen 1.1 percent since June 2009.
Remember, the recession supposedly ended in June 2009.
Since that time we have supposedly been in a “recovery”.
So if it has seemed to you that American families have been getting poorer it has not just been your imagination.
In a previous article, I detailed 84 statistics that prove that the middle class in America is being systematically destroyed. If you have not read it yet, I encourage you to go check it out. At this point it is absolutely undeniable that the middle class in America is declining. The following are just a couple of the numbers from my recent article….
1. According to the Pew Research Center, 61 percent of all Americans were “middle income” back in 1971. Today, only 51 percent of all Americans are.
2. The Pew Research Center has also found that 85 percent of middle class Americans say that it is harder to maintain a middle class standard of living today compared with 10 years ago.
3. 62 percent of middle class Americans say that they have had to reduce household spending over the past year.
4. The average net worth of a middle class family in America was $129,582 in 2001. By 2010 that figure had dropped to $93,150.
5. According to the Federal Reserve, the median net worth of all families in the United States declined “from $126,400 in 2007 to $77,300 in 2010“.
You can find 79 more statistics just like this right here.
At the same time that our incomes are going down, the cost of living just continues to rise steadily.
Thanks Ben Bernanke.
American families are being increasingly stretched financially, and if major changes are not made this is going to get even worse in the years ahead.
Another thing that we aren’t being told on the nightly news is that the percentage of working age Americans that have jobs is lower today than when the last recession ended.
So let’s summarize….
-A smaller percentage of Americans have jobs today compared to June 2009.
-Median household income has declined by 4.8 percent since June 2009.
-American families are far less wealthy than they were just a few years ago.
Are we sure that we are in an economic recovery?
Just look at what is happening to our cities.
The rest of the world once looked at Detroit in awe.
Now it is a global joke.
You can see some incredible photographs of the devastation in Detroit right here.
This kind of thing is happening on the east coast as well. I have written many times about how horrible life has become in places such as Camden, New Jersey.
Well, now the entire Camden police force is being disbanded, and the policing of the city is going to be turned over to the county.
We are a mess, and it is time to admit that.
Sadly, most Americans simply have no idea how close our economic system really is to total system failure.
Only 24.6 percent of the jobs in this country are “good jobs” at this point, the velocity of money in our economy has plunged to a post-World War II low, unemployment is rampant, more than half of all Americans are at least partially financially dependent on the government and our national debt is crossing the 16 trillion dollar mark.
We don’t need someone to come in and “tweak” the economy.
We need radical reconstructive surgery.
But most Americans do not understand this.
Most Americans do not seem to grasp these things until economic hardship touches them personally.
After all, if you still have a good job and the mainstream media is telling you that everything is going to be okay it is really easy to pretend that we aren’t heading for an economic disaster of unimaginable proportions.
A massive problem that we are facing right now is something known as “normalcy bias”. This is how Wikipedia defines “normalcy bias”….
The normalcy bias, or normality bias, refers to a mental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster occurring and its possible effects. This often results in situations where people fail to adequately prepare for a disaster, and on a larger scale, the failure of governments to include the populace in its disaster preparations. The assumption that is made in the case of the normalcy bias is that since a disaster never has occurred then it never will occur. It also results in the inability of people to cope with a disaster once it occurs. People with a normalcy bias have difficulties reacting to something they have not experienced before. People also tend to interpret warnings in the most optimistic way possible, seizing on any ambiguities to infer a less serious situation.
Doesn’t that sound exactly like the vast majority of Americans right now?
Most Americans just assume that since we have always recovered from every other economic downturn in the past that we will always be able to easily handle whatever the future throws at us.
If only that was true.
We are heading into a time that will be unlike anything any of us have ever experienced before, and many people that have blind faith in the system are going to be absolutely devastated when this coming crisis blindsides them.
Our economy has been collapsing, it is continuing to collapse, and the collapse is going to accelerate dramatically in the coming years.
You can have blind faith in the system, or you can get prepared for what is coming.
The choice is up to you.
Once upon a time, anyone that was relatively competent and willing to work hard could go out and easily get a job that would enable that person to financially support a family. Unfortunately, that is simply no longer true anymore. Well paying “middle income jobs” are being rapidly replaced with “low income jobs” and part-time jobs. As the economy crumbles, it is becoming increasingly difficult for the typical American worker to survive from month to month. The number of companies that provide benefits such as health insurance has fallen steadily over the past ten years, and paychecks have not been keeping up with the rising prices of food and gas. Average American families are seeing their budgets squeezed like never before, and many of them are going into huge amounts of debt in order to make up the difference. Sadly, this is a problem that has developed over an extended period of time and that is not going to be reversed overnight. Over the past four decades, the ratio of wages and salaries to GDP in America has fallen dramatically. The typical American worker is not as valued as much as he or she used to be, and if current trends continue even more of us will be working part-time jobs or “low income jobs” in the years ahead.
In America today there is a great deal of focus on the unemployed, but there are also millions upon millions of Americans that are working part-time jobs because that is all that they can find.
It can be absolutely soul crushing to go all the way through school getting good grades, spend a ton of money on an education, and then work for 8 bucks an hour doing meaningless work for some predator corporation that simply does not care about how talented you are.
Today, an astounding 48 percent of all Americans are considered to be either “low income” or are living in poverty.
According to the New York Times, approximately 100 million Americans are either living in poverty or in “the fretful zone just above it”.
A lot of those people actually do have jobs. Unfortunately, a part-time job that pays 8 or 9 dollars an hour just will not get you anywhere close to getting over the poverty line.
This is not the way that the U.S. economy used to work. Back in the old days, good paying jobs that would allow you to live “the American Dream” were plentiful.
But now millions upon millions of Americans are scrambling for anything that they can get. According to a recent survey conducted by Gallup, the percentage of Americans that are working part-time jobs but that would like full-time jobs is now higher than it has been at any other time in the last two years.
In this economy, a good paying full-time job is incredibly precious. If you still have one, you should consider yourself to be very fortunate.
Check out the following chart. It is a chart that shows the level of wages and salaries as a percentage of GDP in the United States since the late 1940s. As you can see, the slice of the pie being taken home by American workers has been dropping like a rock since about 1970….
Is that a clear trend or what?
And it is going to continue year after year as long as we continue to pursue the same foolish economic policies.
As our politicians continue to allow millions of American jobs to be shipped overseas, competition for the jobs that remain inside this country is becoming extremely intense.
Back in 1967, 97 percent of all U.S. men with a high school degree between the ages of 30 and 50 had jobs. Today, that figure is down to 76 percent.
As you read this, there are hordes of hard working American workers sitting at home staring at their televisions as they wonder why nobody will hire them.
Right now, if you gathered together all of the unemployed people in the United States, they would constitute the 68th largest country in the world.
That is absolutely insane.
But even if you do have a job that does not mean that you are in good shape. The percentage of “low income jobs” just continues to climb. Back in 1980, less than 30% of all jobs in the United States were low income jobs. Today, more than 40% of all jobs in the United States are low income jobs.
Many Americans work as hard as they can and still find that they must turn to the government for financial assistance. According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.
And that number is just going to keep climbing unless we change what we are doing as a nation.
Perhaps you are working a “low income job” right now. Most of us have worked a job like that at least once in our lives. Hopefully you will find the following list amusing. Yes, I have exaggerated a few things slightly, but I think you will get the point.
The following are 20 signs you might be a typical American worker….
#1 If you are working three jobs and you still don’t have enough money at the end of the month, you might be a typical American worker.
#2 If your job involves asking the question “Would you like fries with that?”, you might be a typical American worker.
#3 If you shop at the dollar store because Wal-Mart is too expensive, you might be a typical American worker.
#4 If your job requires you to wear a smock, a brightly colored polo shirt or lots of “flair”, you might be a typical American worker.
#5 If people are constantly asking you where the restroom is while you are at work, you might be a typical American worker.
#6 If your employer hires extra part-time workers in order to avoid giving anyone full-time hours, you might be a typical American worker.
#7 If you are required to watch a mindless “training video” after being hired, you might be a typical American worker.
#8 If the company you work for is owned by someone on the other side of the world, you might be a typical American worker.
#9 If a trained seal could do your job and you feel like your expensive education is going to waste, you might be at typical American worker.
#10 If you don’t have any health insurance at all, you might be a typical American worker. Only about 25 percent of all part-time workers in the United States receive employee benefits such as health insurance or paid sick leave.
#11 If your car is older than your kids are, you might be a typical American worker.
#12 If you can’t afford to buy the things that you are selling to the public, you might be a typical American worker.
#13 If the balances on your credit cards are larger than your bank accounts are, you might be a typical American worker.
#14 If going to Burger King is your idea of “fine dining”, then you might be a typical American worker.
#15 If it costs more to fill up your car with gas than you will make at your job today, you might be a typical American worker. The price of gasoline has increased by 83 percent since Barack Obama first took office, and the average cost of a gallon of gas in the United States is now up to $3.52.
#16 If you eat your cereal with a fork so that you can save milk, you might be a typical American worker.
#17 If your electricity bill keeps going up but your paycheck never does, you might be a typical American worker.
#18 If it feels like you are losing an organ every time you pay for health insurance each month, you might be a typical American worker.
#19 If you feel like your employer is constantly tempted to replace you with someone younger and cheaper, then you might be a typical American worker.
#20 If you are so poor that you cannot even afford to pay attention, you might be a typical American worker.
Unfortunately, a lot more Americans are going to be forced into working these kinds of jobs if current trends continue.
Since the year 2000, we have lost 10% of our middle class jobs even though our population has increased by more than 30 million since then. In the year 2000 there were about 72 million middle class jobs in the United States, but today there are only about 65 million middle class jobs.
The lack of good jobs in America has some very real consequences. In particular, our young adults are really feeling the pain of not being able to find quality employment.
According to a recent poll conducted by Generation Opportunity, huge numbers of Americans in the 18 to 29 year old age bracket are delaying major life decisions due to the poor economy….
-44% are delaying buying a home
-28% are delaying saving for retirement
-27% are delaying paying off student loans or other debt
-27% are delaying going back to school or getting more education
-23% are delaying starting a family
-18% are delaying getting married
All of those things take a lot of money, and if you simply don’t have the money it makes things really tough.
Sadly, the economy is about to get even worse.
As I have written about previously, what is going on in Greece right now is a warning sign for the rest of the world, and we are on the precipice of another major global financial crisis.
There are an increasing number of voices in the financial world that believe that we are going to see a Greek default in March. So will this actually happen? I certainly don’t know. But what some folks are currently saying about the situation sure does make for interesting reading.
In the old days, you could graduate from college, get a good job, work for the same company for 30 years, save up for retirement and count on a comfortable life in your old age.
That paradigm is now totally shattered. The entire global economic system is in a state of chaos and things change faster today than they ever have before.
If you have a job today, it may be gone tomorrow.
The financial institution or insurance company that you are working with today may be out of business by next month.
We live in a world that is becoming increasingly unstable. That is why it is imperative to try to become more self-sufficient and less dependent on the system.
It is tough to plan in such an environment, but one thing is for sure – tough times are coming and things are not going to get any easier than they are now.