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ACA In Healthcare

Decent Essays

1. Definition and Introduction
The affordable Care Act was signed into law in March 2010 by the President Barack Obama (affordablecareact, 2016). The objective of this Act is to improve the American health care system by expanding the health coverage through insurances. This essay would like to discuss the impacts of ACA on Health Care Providers from an economic view. Generally speaking, there are mainly three parts in this essay: firstly the author would discuss whether the ACA can help the problem of adverse selection, and then the author would like to show the difference between ACA and Single-payer Plan - especially the financial part. In the end the author would summarize the discussion and provide personal views towards ACA.

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In this case the economics of scale for health provider would more likely reach. Economic of Scale refers to the cost advantages that the company can enjoy when the scale of operation or size has reached to an extent that the marginal returns exceed the marginal cost (Froeb et al, 2013). This is because in the financial system, the fixed cost can be covered with the increasing usages. With the increasing of needs of health & care, the health provider might operate more smoothly and the financial statement would like to be more profitable. Besides, ACA covers lots of health & care service (hospitalization benefits, emergency room care, outpatient care and etc), this would like to increase some needs of some services, and then the health provider might enjoy the economics of scale more easily. In the past which the single payer plan exists, the funds of health & care was not utilized much effectively which means the less number customers of health providers, and the economics of scale might difficultly to …show more content…

However, the ACA allow them they to consider the prevention of some illness in other ways. Instead of taking treatment for illness, they might try some preventative medicine and treatment in advance. On one hand, this can keep their continuous health; on the other hand, this can help them to consume their rights of health & care. In single pay plan, the preventative medicine would decreased as in usual people would go to hospital until they do not feel well or get sick. The preventative medicine was needed in some times – usually the early treatment was most effective. The increasing preventative medicine might increase the cost in total, but it would decrease the future costs which still could be regarded as

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