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
In 2010, the United States created The Affordable Care Act (ACA). The objective was to share the responsibility of costs between the government, individuals, and employers to provide affordable access to quality health insurance. “However, health coverage remains fragmented, with numerous private and public sources, as well as wide gaps in insured rates across the U.S. population.” (“United States: International Health Care System Profiles,” n.d.). Each individual state within the US, generally has control over private insurance.
Obamacare or the Affordable Care Act, implemented by President Barack Obama is the one of the major healthcare reform in America after Medicare’s implementation. Also it is one of the most debatable issues in the present times. Many are doubtful about its long term effects while many more are happy that they would finally be insured. It is of no doubt that the Obama Administration has brought in ACA with a very noble and optimistic intention of providing insurance and healthcare coverage to each and every citizen of America. However from a public administrative point of view it is essential to think about both the potential benefits and harms of this act on the healthcare economy. The reviewed articles discuss about why and how the ACA was implemented, how the architects are ACA are expecting it to benefit the society and what would be the effects of its implementation. The articles from healthcare journals discuss about the effects of ACA on the quality of healthcare.
The Affordable Care Act (ACA) has been a topic of dispute since its introduction and continues to be discussed by politicians in the U.S. and throughout the world even after its passage. The Act has many opponents and is the cause of much controversy nationwide, primarily because it introduces higher healthcare costs for the richest citizens. Nevertheless, the ACA is an important stage in the American healthcare development process as it not only allows more people to receive healthcare services, but will also reduce the deficit. However, not everyone agrees. The policy is controversial in terms of cost vs. benefits, but the benefits ultimately outweigh the costs.
The Affordable Care Act (ACA) is considered to be one of the most radical health care moves in legislation after Medicare. The reason being that it will provide universal health coverage to everyone regardless of circumstance. An evaluation of ACA’s influence on health care will be evaluated in this paper.
In this plausible solution should be such that one party should not win at the expense of others. In this more cooperation, coordination and support for all parties are required to make ACA effective. The plausible solution in this regard is to encourage both the public and private hospitals/health care/ organization to work and participate together with cooperation. This contribution will reduce the government burden that is it will reduce the cost to the government and will not create economic tension. From the supporters side, the health cess charged to all the tax payers
The Affordable Care Act (ACA), also known as Obamacare, was officially signed into legislation in March 2010. The ACA was a major step in achieving a system of universal healthcare, which essentially means all citizens are provided with healthcare and financial protection. In the 1960’s America introduced the Medicare and Medicaid programs, which helped guarantee some type of medical insurance cover for the very poor (Medicaid) and elderly (Medicare). Even though programs like these assisted in covering the most vulnerable groups of people, many Americans still did not have healthcare insurance. The goal of the ACA reform is to ensure that all Americans are covered by some form of health insurance. The ACA promises healthcare access to
Affordable Care Act (ACA), often known as Obamacare, was signed by President Obama in 2010. The goal of the Act is to increase the number of individuals with health insurance to the point where all Americans are insured by providing quality healthcare at an affordable price. Despite its good intent, the ACA is not as perfect as it may appear. In this paper, I will list the main features of the Act, its pros and cons, and how it affects you as an individual and discuss the King vs. Burwell lawsuit.
The Affordable Care Act (ACA) has definitely had a tremendous impact on the economics of health care within the United States. However, is this actually the impact that was intended? There are many political controversies over the ACA, which leaves unanswered questions about the true financial projection of the new healthcare reform. The pricing of new health care coverage has forced cost-shifting but more so price discrimination. The main intent of Obamacare was to eliminate the high volume of uninsured individuals; unfortunately the impact has taken a different approach and perhaps has had a negative effect on the economy.
The Affordable Care Act (ACA) was enacted in 2010 and was designed to insure millions of people, who did not have health insurance, reduce out-of-pocket expenses for families and reduce costs for small businesses. In essences, when enrollment opens in 2013, the ACA law will target the 42 million Americans that according to a Census Bureau Survey are uninsured (Klein). Indeed, Obama Care from a utilitarian point of view is a huge improvement in medical services to a larger proportion of the population, that prior to this law did not have insurance available to them, including improved availability of health care services and reigning in out of control insurance companies.
One of the primary goals of the Affordable Care Act (ACA) was to provide affordable health care coverage and increase access to affordable health care to the community. Unfortunately, since the passage of the ACA, while there has been an increase in the number of people with health care coverage, those same people do not necessarily have access to affordable health care. Currently, the public views the Emergency Department (ED) as a safety net by the community it serves; as demonstrated by the increasing number of people who continue to seek treatment in the ED for non-urgent problems. Utilization of the ED for non-urgent care contributes to the rising costs of healthcare as treatment in this setting can be upwards of three times the cost
The ACA provides various benefits to Medicaid enrollees by expanding coverage to include mental health, prescription drugs, family planning services, hospice care for children, tobacco cessation, preventive and obesity related services. The main provision of the act is to reduce cost while improve the quality of care and the way it is delivered. The law prohibits insurance companies from dropping coverage for any reason, provide insurance even if there is a pre-existing condition. Provide coverage for preventive services and immunizations. Dependant coverage is extended up to age 26. The law established a cap on insurance company’s spending on non-medical costs and administrative expenditures. Insurance companies cannot charge more money based on an individual’s health status, gender or salary. The ACA reforms Medicare by closing the coverage gap also known as the “donut hole” by continuing coverage for prescription drugs.
The Affordable Care Act (ACA) is the most significant health care legislation reform in the United States since the passing of Medicare and Medicaid (Russell Sage Foundation, n.d.). Changes in healthcare delivery affect consumers, insurance companies, healthcare providers, and policy makers. Several factors provoked this monumental change in health care. Social, political, and economic forces drive change in the United States healthcare system. Within these categories, scarcity, a changing demography, and interests groups have a profound influence on how we view health care and which policies are enacted.
More people are enrolling and taking advantage of government subsidies and Medicaid expansion as costs in healthcare rises. At the beginning of March 2015, the projection of ACA cost was at $1.201 trillion spread over 2016 to 2025 (about a decade). This is a drop from what was predicted in January 2015 at $1.35 trillion giving a 7% decrease from April of 2014. All in all, the net amounts include the Marketplace coverage provision, Medicaid growth, tax credits from employers, and Children’s Health Insurance Program. Revenue is also generated from money paid from penalty, and tax elimination. ACA will just get better because of decrease in healthcare costs due to Medicare transformation as Medicare expenses are calculated distinctly in the budget predictions, whereas it contains a greater part of ACA ITSELF. This is good news because the health care costs is the lowest it has been in the last 50 years.
Some the ten were most covered by existing plans, but not all ten. Under the ACA preventive care, maternity and newborn care, mental and behavioral health treatment, services and devices to help people with injuries, disabilities, or chronic conditions, pediatric care that includes vision and dental care are included within all insurance plans. Hospitalization was not a part of all insurance plans, but it is now covered in all plans. (Amadeo, 2015)All of these aspects of the medical field promote illness prevention and reduces expensive emergency room visits. Moving millions of Americans to the preventive side of medicine instead of the reactive side provides a healthier American public. This decreases days away from work and increases employees’ wages. The ACA does not allow insurance companies to deny applicants due to preexisting conditions or raise premiums once they seek medical attention. This helps many Americans that have had health issues in the past and were unable to obtain health insurance due to these
The implementation of the Affordable Care Act (ACA), popularly known as “Obamacare”, has drastically altered healthcare in America. The goal of this act was to give Americans access to affordable, high quality insurance while simultaneously decreasing overall healthcare spending. The ACA had intended to maximize health care coverage throughout the United States, but this lofty ambition resulted in staggeringly huge financial and human costs.