President Elect Trump made waves shortly after his election when he stated that instead of repealing Obamacare, he may support simply amending Barack Obama’s signature piece of legislation.
Working Americans have paid the highest price for the Affordable Care Act. A law that has turned out not to be affordable for those who choose not to live off of the government.
Between 2013 and 2015, market medical costs have increased an incredible 69%.
Those increases in care quickly worked their way into the health insurance market where prices are expected to rise AGAIN, by at least 30% in several states in 2017.
There is little arguing that Obamacare is a complete disaster for most Americans and their families.
But, who has benefited?
Healthcare companies, their investors and some insurance companies.
With the highest level of coverage for Americans in history, business is a booming for healthcare providers and rates are only going up.
To add even more pain to the system, those newly subsidized Obamacare recipients are taking advantage of their low-cost coverage and lining up to see the doctor at any given opportunity – meaning prescription drug abuse is at an all time high – as is heroin addition with overdose rates hitting all-time highs year after year.
Addiction, as bad as it seems to society is great for healthcare as rehab is funded as are the constant visits for the problems associated with addiction.
A vicious cycle for sure . . . but great for business.
Just take a look at the Vanguard Health Care Index Fund. In 2013, when Obamacare rolled out, the fund was priced at $36.
By mid-2016, the fund had broken $70 per share. Far outperforming the market.
Over the weekend, Sen. Mitch McConnell began to beat the war drums to completely repeal Obamacare, before a replacement is considered.
Repeal, while great for American taxpayers, will hit the healthcare industry like a bullet train barreling into Trump Tower.
As it stands, the medical provider industry could not have it any better, and they have made a killing over the last three years.
Money like that doesn’t go away without a fight so expect the healthcare industry to get off of the fence and send in their best, brightest establishment lobbyists to maintain the status quo.