Porter 's Five Forces Model Essay

1793 WordsOct 22, 20168 Pages
Porter’s Five Forces Model for the ACA helps explain how the system is currently being utilized in an unforeseen manner. (1) Competition in the industry is the private insurance, but in the unique world of healthcare, the competition does not infringe upon each other as conventional competition would. Private insurers have agreed to participate in the government’s exchange in return for more customers, but the premiums that new customers would pay are not conducive to profitability by the participating insurers. (2) The potential of new entrants into the ACA exchange is very slim due to the number of insurance companies that are currently pulling out of the exchange because of a lack of participation with paying consumers who would otherwise be the infrastructure for the plan to have a modicum of success in insuring the uninsured. However, new entrants of the newly insured into healthcare centers are negatively impacting the healthcare workforce. (3) The power of suppliers to make the exchange work is dependent upon the number of healthy, younger customers that can pay into the system without using the insurance, but the majority of unhealthy customers that utilize the most monies of the exchange are the majority of customers so the governmental exchange becomes unsustainable. This supports the argument that an influx of unhealthy Americans who need care is taxing the healthcare staffing shortage. Also, the supply of private insurance companies that have an exchange as part

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