The Impact of the Affordable Care Act on the Health Care Industry

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Affordable Care Act's Impact On The Health Care Industry If you've lived in the United States, there is no way the topic of Affordable Care Act(ACA) could be evaded. Its on the news, its on the streets, its everywhere! For the general public the ACA stands for complete health coverage and cheaper insurance premiums. For the healthcare Industry however, whether Hospitals, Health care delivery models, Insurance Companies, Pharmaceutical and Biotech Industries, the ACA poises a huge reform in the delivery of services and products. The ACA or commonly known as Obamacare or the Patient Protection and Affordable Care Act(PPACA) hopes to improve accessibility and quality while reducing costs.

Value Based Purchasing The existing reimbursement
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The ACO's will be reimbursed based on keeping the population which comes under the Medicaid healthy. The success of the model will result in an extension of the model for other services such as medicare and insurance providers.
Medicaid Improving Coverage The medicaid hopes to expand its coverage to people under the poverty line with a 400% coverage. Under the new law, medicaid would cover a family who earns less than $29,700 annually. This means that medicaid could cover 21.3 million Americans by 2020 if the States opt to do so.

The Spiral Effect The reasons for the rising prices has been noted by health economists and the term 'Spiral Effect' was coined. Since uninsured and underinsured opt out of receiving timely care, the disease gets aggravated. Since first aid for emergency care is complimentary for everyone in the United States, people use this under the direst of circumstances. When emergency care is sought at this point, it becomes expensive and the hospital tends to write off this amount because the patients would be unable to pay. To make up for the lost money, the hospital increases the cost for the insurance company who in turn increases for the insurance buyers. The coverage for all policy by the ACA will be able to decrease the spiral effect of healthcare.
Stake Holder Analysis Healthcare Industry is complex. The

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