Pros And Cons Of Obamacare

Opposition of Medicaid

The Affordable Care Act or Obamacare was meant to lower the cost of health insurance for low-income Americans making health care more affordable. The idea of this act caught everyone’s attention and seemed to be too good to be true, after hearing the promises made in the act by the Federal Government. States had a choice to accept it or reject it, the government would pay one-hundred percent the first three years and eventually be responsible for only ten percent of the cost by the year 2020. Many states rejected Medicaid expansion causing a coverage gap 3.1 million people uninsured poor adults. Enacting this law took a huge toll on the insurers, enforcing rules that will change the way they spend their funds and either

The 80-20 Rule states that insurers have to pay eighty percent from the money they receive from premiums on actual healthcare, which means the customers receive a rebate. Also, the law requires companies to justify rate increases of over ten percent and cannot oppose limits on benefits. The insurers will lose the power to deny or recede coverage because of pre-existing health history. Taking away this power from insurance companies will ensure that more American citizens will be able to get and keep coverage. Most of the spending from the expansion of Medicaid was supposed to reduce the cost for providers who usually suffer from providing care for low-income uninsured Americans who are treated at expensive hospitals. Yet, this has not been the case in most situations. A controlled study proved that “Medicaid coverage generated no significant improvements in measured physical health outcomes in the first 2 years, but it did increase use of health care services, raise rates of diabetes detection and management, lower rates of depression, and reduce financial strain.” (The Oregon Experiment,