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However, the so called reform will have far reaching adverse effect on the nation’s socio-economic features.
To begin with, Obama’s plan offers a public insurance firm in the form of a cooperative which will ensure affordable health insurance coverage for all, irrespective of age, sex or risk factors (The Obama Plan). Obviously, a subsidized coverage option will enhance public interest, which is expected to beat private insurance companies. Since The United States spends a higher proportion of its gross domestic products on healthcare services, Mr. Obama thinks that his plan would help people save considerable amount of their healthcare expense every year. Although it seems to be significant, the ultimate effect of premium deduction and subsidies inevitably result in tax hike. The President puts an estimate of $900 billion as ten year cost limit for the proposed package; whereas, experts believe that it would exceed $1 trillion (Pear R., Calmes J., 9 Sept., 2009)
Mr.Obama reiterates that the public insurance will only be an option; and people will have the freedom to choose private plan if they think it suits them. Although he says that the government will not administer the health care system, his plan has all features of single payer system. For instance, regarding the high risk pool he says “for those Americans who can’t get insurance today because they have pre-existing medical conditions, we will immediately offer low cost coverage that will protect you against financial ruin if you become seriously ill.” (Pear R., Calmes J., 9 Sept., 2009). Under this system people have almost complete medical coverage and free access to healthcare. This approach will plunge the public insurance firm into big loss.
In addition, this concept of ‘socialized medicine’ is against the social privileges of the U.S. citizens. Regardless of its high cost, the U.S. health care system is highly competent and people have the
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