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Finance Allah shmoop What is Obama care Well the technical

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term Yeah it's the Patient Protection and Affordable Care Act

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Obama care is well just the affectionate nickname like Bubba

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or Sparky or monkey buns Anyway the goal of this

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act was to provide all Americans with health care insurance

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and the intent a noble one Lots of people don't

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have health insurance because they have like literally no money

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or nobody will ensure them because they're oh so sick

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or because well they're just daredevil arrogant thrill seekers who

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never think that gravity will fight them So how did

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our then president expect to be able to get this

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done well enormous financial expense with an extremely high degree

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of difficulty to pull off on a national scale Essentially

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the plan was to meaningfully expand Medicaid which is the

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insurance for the poor and the disabled Well instead of

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covering most people for a relatively modest tax to the

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poor it would offer Medicaid which while still not offered

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to all people was expanded in many states well paid

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for by a variety of taxes including higher taxes for

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individuals in some corporations such as medical device manufacturers and

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taxes on insurance plans It originally forced everyone to either

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buy insurance individually have it provided by an employer or

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else pay a penalty Now if you were a normal

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hardworking healthy ish taxpayer it meant that your tax bill

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instead of being eleven thousand two hundred fourteen dollars would

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now be eleven thousand eight hundred fourteen dollars And a

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lot of Americans were upset at having to take the

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six hundred dollars that they had earmarked toe by Johnny

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clothing and a new swing set next year and now

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give it to the sick and or disabled masses Well

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Obama care essentially change the rules for what is expected

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from a health care insurance plan Doctors are not required

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to treat you but your insurance was required to provide

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a broad basket of benefit like any previous illness you

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had or certain procedures you'd had done had to be

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included in your health plan People had to purchase plans

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that offered this package whether or not they needed the

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full amount of insurance Fair not farewell Let's think about

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this concept because a lot of people were and continue

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to be really angry about Obama care and they're not

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all idiots not like these people On the one hand

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it makes sense that you should get care if you're

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sick right This is in India This is in a

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poor African country where the warlords drive Ferraris as their

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population starves This isn't even an article where the rulers

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barely give a fish to the ruled So the idea

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of covering everyone and anyone who is ill is really

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not a terrible thought The truth is that the added

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cost of covering everyone was managed through subsidies by requiring

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everyone have insurance or pay a fee and requiring broader

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forms of insurance The generally healthy and young subsidized the

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old and sick In addition subsidies for care or offered

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for the indigent Obama care also created incentives for people

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to just pay the penalty and avoid insurance altogether and

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or not really care for themselves or worry about their

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own health management because the government now mandated that coverage

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regardless of an individual's health or lifestyle So let's have

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that fourth Dona Who cares If obese people are ten

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times more likely to get very expensive to treat diabetes

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The government will cover the cost O And how do

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you feel about that at Cole who's always riding his

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motorcycle eighty miles an hour between cars on the freeway

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with no helmet Yeah he crashes Doesn't die He costs

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a million dollars of insurance or government money depending on

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the type of coverage as to live in the hospital

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for you know five months Taxpayers will have to spend

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their money on that guy instead of offering computer science

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courses to their entire district under the federal matching funds

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for education that we're supposed to be there Well the

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truth is our budgets are finite and expanding Medicaid wasn't

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free We are a hugely indebted country with most of

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our states in analogous ly bad financial shape So money

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isn't free And when we pay for things they come

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out of other things And Obama care basically made the

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decision that the motorcycle guy can get coverage at similar

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rates to the rest of us regardless of how much

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risk he takes And yes he's the extreme case and

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a lot of other less extreme and way more positive

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cases were covered as well But if it was your

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kid's computer science courses that were canceled to reallocate tax

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dollars to that motorcycle ball Well you'd give pause right

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Did Obama care really encourage people to care less than

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they already did about their health Probably not But it

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did create a kind of adverse selection in that the

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worst health managers or least healthy people who were likely

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the most expensive to treat would be encouraged to opt

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in to Obama care and just keep on keeping on

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with Joe Camel and the gang and not worry Be

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happy As Obama care was rolled out it expanded coverage

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dramatically so that it wasn't just for cataclysmic things like

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lung cancer and diabetes And under ten broad categories healthcare

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costs were codified and reapportioned So you had emergency services

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like ambulances And then he had drugs covered basically an

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expansion of Part D of Medicare mapped onto Medicaid Add

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to this coverage maternity leave Then it also added in

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the castle for allowing kids to stay on there parentsplans

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until they were age twenty six Then an added premium

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costs for old people that were essentially rent control That

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is those costs Toe old people could not be more

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than three times the cost for the same service to

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young people and remember that market forces would dictate that

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young people on a relative basis almost never get sick

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when compared tto old people So the real market costs

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were away more than three times like the rent control

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was really inefficient And again these extra costs beyond what

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the market would naturally dictate they should be came out

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of the pockets of the hardworking money earning taxpayers through

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Medicaid expansion or subsidies for providing insurance And plus while

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it raised is the cost of insurance for healthy people

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who have always had coverage because they had to subsidize

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the care of the sick And then there was the

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smoker provisioned Yeah remember Obama smoked So uh this lit

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a fire under his opponent's part of Obamacare also capped

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the cost to smokers who used to pay higher rates

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for their insurance It capped cost two smokers such that

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they couldn't be charged more than one point five times

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the normal rates of non smokers even if they were

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ten times more Likely is a group tohave very expensive

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to treat health care problems And this whole program was

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structured as mandatory meaning that Obama care required that every

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single person in the country have health insurance Not a

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terrible idea but it required employers toe pay for it

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if the company was of a certain size or required

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individuals to purchase it If employers didn't pay and individuals

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didn't purchase Yes they originally faced that penalty that big

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or else thing we were talking about like a motorcycle

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guy Yeah he must pay for insurance Well he's too

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stupid to wear a helmet than you Khun Fairly ask

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Why would he be smart enough to at least Carrie

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basic insurance Well the government then has to essentially force

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him to brush his teeth while he still has a

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few left So Obamacare forced you to carry insurance or

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you pay the fine or penalty if you didn't and

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Trump's tax reform package promptly removed that penalty putting the

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burden back on the individual or set another way If

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that person wants to risk life and limb they should

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be able to just not on the taxpayers nickel Well

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the broader goal financially revolved around the notion that if

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you had a large enough pool of money to cover

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the sick then the healthy who need little to no

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maintenance would essentially foot all the bills So who would

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you guess would then not want this coverage and obese

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diabetic old flower shop worker or a healthy young person

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who could run a sub forty five minutes and K

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Yeah the young people just opted out for better or

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worse Wiser stupid They just didn't sign up for Obama

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care And that was where the beginning of a financial

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wakeup call began Governments or simply bad at predicting consumer

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behavior And if all of this wasn't controversial enough given

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that this country's health issues are regional ahs well a

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cz national meaning that a night stay in the car

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cost way more in Manhattan than it does in Tuscaloosa

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Obama care tried to push down to the state level

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is much admin as it could in the process It

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created state exchanges And that's about geographic states not states

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of consciousness and of course with government workers trying to

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build complex websites while the backend technology and the rollout

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completely failed embarrassingly And for some this was actually surprising

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shocking Even Like when you think of America's best and

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brightest technology people you probably don't think of the D

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m V or the T s A Or the technologies

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that either of those places proffer Anyway the policies gave

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states the right to go it alone and try to

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manage their own Obama care policies are basically just give

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back the money to Medicaid and let the federal government

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deal with things the way they had been So that's

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obamacare In a nutshell Lots of nuts And plenty more 00:09:02.92 --> [endTime] to be Sheldon They passed the donut Yeah

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