The affordable care act presented the United States with the most extensive overhaul since the passage of Medicare and Medicaid in the 1960’s. The act was a response to staggering statistics on the price of healthcare and the resulting uninsured rate within the United States. The affordable care act uses Individual Mandate and Health Insurance Exchanges to combat major factors causing high insurance cost and low insured rates.
As with most reform, the public has not been one hundred percent unified on the potential effectiveness of the Affordable Care Act. Based on 2006 Massachusetts reform and signed into law in 2010 the bill attempted to learn from problems contained within other state reforms but has drawn as much negative criticism as
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While the individual mandate combats adverse selection and attempts to play on the core of human decision making, the exchanges employ old fashioned competition and market forces to penetrate an insurance market not exactly teeming with deals. Both provisions attempt to effect market conditions and in a greater attempt move toward a solution to our nations under insured and over-priced healthcare …show more content…
From an uninformed, simple perspective, one would understandably summarize the logic of the provision by assuming the act aims to influence people to spend the money on health insurance to avoid the tax penalty. Or, purchase the insurance since potential customers are going to pay and get nothing for their money if the fee is chosen. The individual mandate does indeed attempt to influence American’s behavior but is also chopping at a larger characteristic of the insurance markets. The provision attempts to reduce what is called “Adverse Selection.” To describe the force adverse selection exerts on the insurance market imagine the following situation regarding the loosely similar automobile insurance market. Imagine there is no requirement to purchase auto insurance to drive a car on our roads, not that auto insurance does not exist, but there is no regulation on when or even if it needs to be carried. In this situation it seems likely that many would not choose to purchase insurance until they need it, likely after an accident. Insurance companies then would reasonably assume that all, or most of those that looked to purchase the insurance were those who are in need of it, those with broken cars. Now translate that into the healthcare market, if healthcare is
The Affordable health care act, popularly known as Obamacare, it’s a law that makes affordable health care available to more Americans since there are million of uninsured Americans and it will be cutting the rising cost of health insurance. Because of this law that grants coverage to everyone, it is increasing the rate of demand and consumer expending, making a great impact in the economy especially to GDP and economic growth. Also, not only there’s an increase in spending but also the labor market has been growing, since the employment rate has been increasing in the health care sector. While providing insurance to every American, it is generating major benefits to the newly insured like improving health, enhancing families security, increasing
The accessibility to health care due to the Affordable Care Act has saved so many lives, more than we can count. Furthermore, every beneficial concept has cons attached to it. The Affordable Care Act was also the cause of many workers losing their employment-based
The Affordable Health Care Act, also known as “Obamacare”, is basically just Obama trying to make sure that the whole nation has insurance and if they do not have it by January 1, 2014, they will be penalized with a fine. To make insurance more affordable, many Americans are able to qualify for a subsidy that lowers the cost depending on age and income. Also, “Obamacare” made it impossible for insurers’ to discriminate, or charge higher rates, for anyone who has pre-existing conditions or for a certain gender. Medicare will also be easier to obtain due to requirement of insurance. This law was passed in the U.S. on March 23, 2010 by Congress and President Barack Obama.
you can't always shop for health care.” One of those reasons is that “...health care's emotional component is not economically unique.” People may shop base on “an emotional basis”. Along with it, it is definitely unworkable for a person to get a healthcare plan if they are senseless, like McCardle has said “No, you can't shop for health care when you're unconscious, or when you're in acute or emergent situations.” Those argumentations led to a solution which both the federal plans and the free market.
The affordable care act is a United States statue signed into law by President Obama in March of 2010. It represents the most significant improvement to the U.S. healthcare system since 1965 with the addition of Medicare and Medicaid. Also known and commonly referred to as Obamacare, it was enacted to increase the affordability and quality of health insurance, diminish the rate of the uninsured by expanding public and private insurance coverage while reducing the cost of healthcare for individuals and the government. This law will require Hospitals and doctors to reconstruct financial practices along side with technologically and clinically to advance better outcomes, reduce cost and improve methods of accessibility.
The Affordable Care Act was a health care act that was established by the federal government to expand and improves access to care and curb spending through regulations and taxes. Each state could decide to participate or not. The act was adopted as law by US Fisher02 President Barrack Obama in March 2010. The goal of this act was to reform the current health care in the United States.
The Affordable Care Act consists of the ten sections including Quality, Affordable Health Care for all Americans, Role of Public Programs, Improving the Quality and Efficiency of Health Care, Prevention of Chronic Disease and Improving Public Health, Health Care Workforce, Transparency and Program Integrity, Improving Access to Innovative Medical Therapies, CLASS Act, Revenue Provisions, and Strengthening Quality, Affordable Health Care for all Americans (Fontenot, 2013). The Affordable Care Act aims to reduced the number of uninsured Americans by mandating all citizens have health insurance either through private insurance coverage or increasing access to public insurance coverage. The reduction of uninsured in theory should reduce the cost of healthcare. Prior to The Affordable Care Act, the burden of cost associated with the uninsured was shifted to the physicians, hospitals, and consumers. HHCAPS or value-based reimbursement should improve the quality and efficiency of healthcare.
People that are at the poverty line can’t afford to pay such high monthly premiums and as a result decline coverage as a choice. We also see the economic concept of self-interest within the article. Often times an imbalance in the health market is created when the younger generation who is usually health doesn’t feel the need to have health coverage. For young folks it is in their self-interest to pay out of pocket only a few times if needed rather than pay monthly premiums. In the end they’ll pay less than they would for having health insurance.
(Chaikind, Copeland, Redhead, & Staman). Supporters of the act contest that the requirement to purchase health insurance is economic in nature because it regulates how an individual participates in the health care market, through insurance or otherwise. The inverse is stated by opponents that Congress cannot have the power to require a private citizen to have insurance and because there is a tax penalty attached to it it is unconstitutional. (Chaikind, Copeland, Redhead, &
The United States no longer posses the ability to effectively drive down premium costs through the means of insuring healthy people. For example there is a town with ten houses, and, on average, one house a year burns down. If no one in the town pays for insurance they have a 10% chance of their house burning down each year. If everyone in the town pays insurance they spread the risk because no matter whose house burns down no one will have to pay anything as the insurance company will cover the cost of the house that burns down each year and make a slight profit. This is the same logic applied to the whole medical insurance market.
All these new restrictions, requirements, and red tape come with a price. Healthcare plans that have provided American families with coverage are being dropped all over the country by insurance companies since they don’t meet the minimum guidelines of the expansive new plans that are recommended by the Affordable Care Act. As a result of the implication of ObamaCare, millions of Americans have lost their healthcare plans, which directly goes against the main goal of the program and Obamas promise to America. ObamaCare has conflicted with the market for citizens who buy coverage on their own by having new coverage and benefit mandates, therefore causing a reported 4.7 million health insurance cancelations in 32 states (ObamaCareFacts.com).
Another goal for this law was so that more U.S. citizens, or Americans, could have access to affordable health insurance of good quality and to also reduce, or decrease, the growth of healthcare spending in the United States of America. This act/law expands the availability, quality, and the affordability of public, as well as private, health insurance through regulations,
Before the Affordable Care Act was put into work, over 45 million Americans were uninsured. The Affordable Care Act, also known as Obamacare, was then made to help those who were uninsured. It allowed people with financial struggles with the same opportunity as everyone else to have a healthcare plan. Even though the law was passed in 2010, it took a full year of back and forth to get it passed in the Senate. Obamacare may help you get coverage, but charge you an annual fee if you don’t have one.
46.8 million Americans were reported as uninsured in 2013, which equivocates to one sixth of the population. Those without insurance have revealed that they risk “more problems getting care, are diagnosed at later disease stages, and get less therapeutic care” (National Health Care Disparities Report) and those insured risk losing their insurance. Inadequately covered citizens are often working-class individuals who simply cannot receive insurance due to uncontrollable inconveniences and therefore jeopardize having medical coverage. In these instances, Americans have a chance of being diagnosed with diseases that they had no opportunity to prevent or could not diagnose them at an early stage of the illness. Patients have suffered unnecessarily due to lack of health care, and “18,000 Americans die every year because they don't have health insurance” (PNHP).
Market forces want to provide health care, but to me the main purpose is more profit based If market forces are running insurances they are likely to put their money first and then provide health care. Affordable health care for those may not really be affordable and if the insurance is affordable its coverage may not be