More on Possible Outcomes of Obama-Care and the Supreme Court

In yesterday’s blog we discussed one possible scenario that could come out of the upcoming Supreme Court ruling on the Affordable Care Act (ACA), also known as “Obama-Care”. What we went over was the possibility that both some key reforms from the legislation as well as the mandate are invalidated.

Today we’ll go over another scenario: Most or all of the ACA is overturned.

This is the outcome that the Republicans and the 26 states that brought the lawsuit against the Administration are hoping for. If that happens we are back to square one. It could affect the outcome of the upcoming elections in different ways. The Democratic base could get reenergized and attempt to paint the Republicans as the evil people who are denying people affordable health care. The Republicans, on the other hand, could point to this as a victory against ineffective government programs and socialized medicine. Both sides would likely attempt to enact some form of health care reform legislation that fits their political views. Who succeeds would probably be determined by who wins the Presidency and controls Congress. We’ll find out more in June when the Supreme Court is expected to issue their decision and watch how this affects the upcoming elections.

Our view is that the entire health care insurance system needs to be reformed. Presently health care providers are rewarded (i.e. paid) for as much treatment and testing as they can possibly provide, but not rewarded for preventative care, thus the extremely high cost of health care and insurance rates. As we have yet to see an efficient, cost effective government program that cannot be more efficiently run by private enterprise (take a look at the Post Office for one big example), we think that reforms need to be mandated by Congress but carried out in the private sector.

We’ll discuss some more possible scenarios in upcoming Silkin Management Group blogs.


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