Limitations Of Regulation Of Private Insurance Systems

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Limitations to Regulation Advocates of private insurance systems argue that flaws in the system can be remedied with regulation of the market or through government subsides to help the poor afford the insurance (NEED SOURCE). Even with the attempt at regulation of the private finance system in the US (the ACA and existing Medicaid program), patients still have limited coverage and accessibility (White, 2013; Garfield and Damico, 2015; Smith and Medalia; 2015). Regulation through expanding Medicaid has fallen short due to state autonomy upheld by the Supreme Court ruling; as of September 2015, 20 states refused to adopt the ACA expansion of their Medicaid programs (Garfield and Damico, 2015). Since ACA envisioned that the expansion of Medicaid would cover an increasing number of families and childless adults at a certain percentage of the poverty line, it does not provide financial assistance to people below poverty for other coverage options (ibid.). The result is a “coverage gap” where many adults do not qualify for Medicaid but are below the lower limit for marketplace premium tax credits (ibid.). Currently, it is estimated that more than 3 million adults fall into this gap indicating that patching a system of inequity and limited access still results a larger in problems for lower-income people to gain access to healthcare (ibid.). Though the ACA is still the early stages, it appears that even a “radical” change in private healthcare financing in the US is not enough to

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