Last week I was meeting with a prospective client and we were discussing how to treat his medical expenses. As a small business owner this is pretty well spelled out, the basics include medical insurance is deductible on the front of his 1040; the out of pocket expenses are listed on Schedule A. He probably knew from his existing CPA how every thing is treated.
But in our back and forth discussions on where the future of health care lies was an interesting one. The prospective client believes that with the advent of “Obama Care” that we will be moving to a distinctive two tiered medical system.
The first will be the catch all of the masses with insurance bought through exchanges or minimal coverage purchased through the employers. With ever increasing costs the coverage will be spotty and rationed, with high out of pocket costs; especially for out of the ordinary procedures.
The second will be a throw back to the olden days when cash was paid for services rendered. The wealthy will be the ones buying the best medical care that is available, from the doctors that flee the exchange service plans due to the poor reimbursement rates and over whelming red tape required for standard procedures. Try to get a decent HMO doctor at this point in time. Just wait 5 years from now and see who is available.
I have to agree with the concerns raised. I believe that they are valid and that this may not be the intention of the current administration, but I can see it as a possible result.