Essay on Medical Savings Accounts

A newest way to finance health care now days is the health care reform which it is also called Obama Care. The Affordable Care Act was signed into law in 2010. The main objective behind the Affordable Care Act was to ensure that affordable health care insurance was available to every U.S citizen. This law is an extensive document that contains many regulations and laws that relate not only to health care but also to the regulation of insurance companies. One of the best known regulations is that group health plans can no longer put limitations or deny benefits to individuals under the age of 19 due to pre-existing conditions and individuals under the age of 26, are now eligible to be covered under their parents’

After the Affordable Care Act (ACA) was enacted in 2010, much of the uninsured population in the United States were finally given the access to health insurance (Shi & Singh, 2015). Prior to the passing of the Act, those who did not have insurance still managed to seek medical attention, whether paying for medical care out of their own pockets or seeking the assistance of government programs. As reported by the U.S. Census Bureau, in 2013, 13.4% of the population in the U.S. were uninsured during the entire year (Smith & Medalia, 2014). Still, a great number of uninsured who sought medical care were unable to pay for those services, this is referred as uncompensated care. In 2013 the cost incurred from

Romneycare requires everyone to get health insurance through the state market place. Both this law, and the Affordable Care Act require businesses to cover all full-time employees. Also, both laws make dropping an individual due of preexisting conditions illegal. Since 2006 almost 90% of Massachusites are insured, and since 2006 Massachusetts has had surpluses in its budget (Kolesnikova). With this extra money, public service projects were preformed such as restoring the I93 tunnel and the Leonard P. Zakim Bunker Hill Memorial Bridge. On a personal level, the law helps individuals and families who are struggling with money. Mary Flynn who has asthma normally paid $60 a month for her inhaler, after her insurance dropped her because of the asthma, she went to apply for RomneyCare. “I felt like they threw me a lifeline,” she said, adding that her inhaler now costs her just $3.50 a month. “It’s the best insurance I’ve ever had” (Kolesnikova). This state law, if properly administered on a federal level, would have similar positive affects nationally.

Price recommends that individuals currently covered by a government provided health program should contribute to their insurance plans through health savings accounts. Proponents of this policy argue that it will hold consumers to be more responsible when seeking healthcare services. Opponents argue that while it might decrease the growth of health care costs, it will worsen health care outcomes.

Monthly payments into health savings accounts, based on their average six-month usage cost, are required by all beneficiaries. Individuals that fall between the 100%-138% FPL are required to make an additional contribution totaling 2% of their income, although, payments can be reduced by following specified healthy behaviors. Regardless of payment status, beneficiaries cannot lose their eligibility or be denied services (“Medicaid Expansion in Michigan”,

it requires consumers to open a Health Saving account and the State will select an administrator in accordance with the account. The consumer finances a self-funded high deductible health benefit coverage including preventive health care to a plan enrollee in the State.

On the whole, the Affordable Care Act reduces healthcare costs while providing better quality services for citzens accross the US. Farley says that the ACA’s reforms to Medicare saved “17 billion in fiscal year 2013” thanks to reductions in payments to private health insurance companies cover their customers through Medicare Advantage as well as adjustments to the annual updates to Medicare provider rates (Farley, 2014). This protects consumers from excessive charges by their insurance providers, by limiting how much insurance providers spend on their own services. And even though the cost of health care, per capita, is gradually increasing, the rate of that growth has decreased over time, thanks to the stipulations, as well as method of implementations, of the ACA. ++++++++++++++++++++++++++=

The Patient Protection and Affordable Care Act of 2010 (ACA of 2010) was the first time the U.S. government had addressed the issue of providing insurance to all Americans in a significant way (Shi & Singh, 2013). President Barack Obama signed the ACA of 2010 into law on March 23, 2010. Since then the comprehensive reforms that the law provides, has been rolled out in stages throughout the years following. Some of these changes included, in 2010 a new Patient’s Bill of Rights went into effect, 2011 brought free preventative care services, 2012 introduced a Value-Based Purchasing program to hospitals, in 2013 open enrollment began for the health insurance market place, and 2014 will be the first tax year that individual that choose not to get health insurance will pay tax penalties for doing so. These changes and the many others detailed in the ACA of 2010 aim to provide more access to health care, bring new consumer protections, improve quality and lower health care costs (U.S. Department of Health and Human Services, n.d.).

With 50 million uninsured Americans in 2010, the Affordable Care Act (ACA) aimed to insure nearly everyone with “minimum essential” health insurance coverage. The ACA provides that all Americans and individuals lawfully present in the United States be provided health insurance regardless of their health or financial situation. It strengthens existing forms of health insurance coverage, while building a new health insurance market for individuals and families who do not have employer coverage or another form of “minimum essential coverage” such as Medicare or Medicaid. In addition, the ACA imposes fees or assessments on health insurance providers. The fees meant to be absorbed by insurance providers will impact premiums for all individuals covered under fully insured or self-funded plans and policies.

Public policy, such as subsidies in the form of tax credits for the purchase of health plans through the exchanges, have been in existence since the inception of the ACA, but one could contend that this falls short on many fronts. Subsidy thresholds and amounts are simply too low and premium costs too high for many middle-income earners to make ends meet. In some cases people would rather risk going without insurance and pay the penalty, than pay for a plan they can’t afford to use anyway (Bernard,

The Affordable Care Act (ACA) is a complex federal law that affects health system of the United States in every aspect. ACA goals is to improve quality of healthcare; increase access, and to stabilize and possibly reduce the cost of the healthcare services. ACA provisions include, but not limited to, expansion of Medicaid to all individuals less than 65 years of age whose income is 133% of the Federal Poverty Line (FPL) or below; created Consumer Operated and Oriented Plan a nonprofit, member-run health insurance companies in all 50 states; prohibits existing health insurers to deny coverage due to preexisting conditions; allows states to create a Basic Health Plan for individuals without health insurance and income range of 133-200% FPL; improves prevention services by requiring health plans to include basic preventive coverage without cost-sharing; improve access to health care by providing additional funds for community based health centers and other community based organizations(Knickman, Kover, 2015. Pp344-361). Every provision of ACA will bring significant change to every area of the healthcare and, as a result, changes in access, quality, and cost. These 3 components of the healthcare system are intertwined and change in one will cause the change in the others.

The affordable care act offers United States’ citizens' access to health insurance, protects them from companies' irrational actions and reduce costs overall. Specifically, in Michigan, countless amount of residents benefit from the actions of the ACA and has created a comfortable living environment. Not only that, the ACA has helped many of those in poverty who are not able to support themselves with their specific illness or disability. Although, numerous people agree that there are minimal issues existing and more improvements should be done. A great deal of people consider the fact that certain costs may be inexpensive for the poverty class, but prices are rising for those in the middle class. Facing the issues of the ACA and adding

The Affordable Care Act has benefitted many patients. It has changed their lives, and their children’s lives for the better. There are a multitude of benefits offered now because of the ACA. For example, it has lowered costs by offering free preventive care, prescription discounts for seniors, protection against healthcare fraud, and small business credits (5-NP). Consumers are saving

The state of Massachusetts had a tax set up to help pay for the expenses of the uninsured emergency room visits. The tax was known as Uncompensated Care Pool, and nicknamed free care pool. It also covered uninsured hospital admissions and community health centers. The free pool care was always underfunded and was raised annually. An MIT professor determined that the amount of money in the free pool care would be enough to fund reform legislation without needing to raise any more taxes or have additional funding.

Build an emergency fund. It can make all the difference. Low-income families with at least $500 in an emergency fund are better off financially than moderate-income families with less saved up. Learn more about emergency funds here.