Healthcare Reform By Signing The Affordable Care Act ( Aca )

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In 2008, Obama accomplished the goal of healthcare reform by signing the Affordable Care Act (ACA). The ACA aims to control healthcare costs and give Americans accessibility to health insurance. One method to accomplish this is Title IX, Sec 9001 of the ACA, known officially as “Excise tax on high cost employer-sponsored health coverage”, which implements a tax on overly generous health plans. This part of the ACA remains one of many issues that has drawn ire from both Democrats and Republicans. The intent of this excise tax, nicknamed the “Cadillac tax”, is to target generous health plans that increase overall healthcare costs. While implementing this tax would raise revenue to subsidize other parts of the ACA and keep healthcare costs…show more content…
The World War 2 era of wage freezes eventually allowed tax-free fringe benefits such as health insurance. Thus, companies were encouraged through tax benefits to provide their employees with health insurance, resulting in many workers today receiving health insurance from their employers. However, economists believe this policy benefits the rich and drives up healthcare costs. By examining the healthcare system and its costs, economists observed that healthcare took up a larger chunk of the US economy than that of other developed nations. Consequently, the implementation of the Cadillac tax on overly generous health plans was meant to keep healthcare costs under control by discouraging nonessential care and encourage preventative care. While initially only meant to affect the rich, which is where the nickname “Cadillac tax” comes from, the Cadillac tax has profound implications for union workers as well. Because unions often negotiate in terms of healthcare benefits instead of wages are already witnessing the effect of this tax on current negotiations. According a survey conducted by Kaiser, 25% of employers expect to pay the tax by 2018 if they did not make any changes to their health plans currently. Since the Cadillac tax will affect the “gold-plated,” or generous health plans that many unions negotiate for their workers, union workers are a prime example of a group that is strongly
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