Economic Impact of Affordable Care Act Essay

1004 WordsMay 12, 20135 Pages
“Economic Impact of the Affordable Care Act” The current healthcare system over burdens the economy and is far too costly in comparison to the health benefits it delivers. The United States spends about 50 percent more on healthcare than any other developed country (as a fraction of our total national economy) and we get less for it on what matters. The human capital required to obtain these services leaves many Americans doing without or not receiving the medical treatment required. The Affordable Care Act may be the most controversial legislation in the modern era. It is marketed as healthcare expansion to about thirty million more Americans. The ACA is also designed to do away with some of the unfair elements of the current…show more content…
(Yoo) These added costs could result in companies losing the money needed to grow their businesses and hire new workers. It is feared that small business, usually the nation's most robust job creators, will be hit hardest and many say the requirement would wipe out their profits. It is alleged that the “slow down” in hiring has already begin in anticipation of the ACA. The total cost for healthcare in the US is around 16 percent of Gross Domestic Product, known as GDP. What we pay to doctors and insurance companies directly are included in this, as well as what we pay indirectly to Medicare and other programs. 16 cents of every dollar spent on groceries or clothes that will go to healthcare. This is very high in comparison to most other developed countries that pay between 9-12 percent of GDP. The difference in GDP is almost 5 percent, which works out to be more than half the annual federal deficit. The biggest fear associated to the Affordable Care Act is likely about the financing and “job-killing taxes”. There are three primary sources that the law applies new taxes to. The first is on parts of the health care industry like medical devices, pharmaceuticals, and insurance. (Turner) These areas that are receiving a new tax are being asked to “kick back” some of the newly created revenue resulted from an increase in paying customers provided by the law. These sectors should benefit on net in a large way. The second is an
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