The Patient Protection And Affordable Care Act ( Aca )

1718 Words7 Pages
Thomas Meyer
ECON 316-50 Health Economics
Summer 2016

The purpose of this review is to investigate through journal sources, government data points, and published opinions and experiences aspects of the Patient Protection and Affordable Care Act (ACA) as it relates to arguments that the law should be repealed. I investigated the goals of the ACA, changes in care and insurance coverage, impacts on the labor market, and changes in insurance premium rates since the ACA was signed by President Barack Obama on March 23, 201 (Hong, Holcomb, Bhandari, & Larkin, 2016) 0.
The primary goal of the ACA was to increase access to affordable care for the US population (Congressional Digest, March). Since 2014 the ACA has mandated that most people in
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Subsidies were also established to increase affordability for people with incomes between 100 percent and 400 percent of the federal poverty level and Medicaid was expanded to cover non-elderly people with incomes up to 138 percent of the federal poverty level (Congressional Digest, March).
Commonly heard arguments for repealing the ACA were the original claims that the average family of four would see a reduction in their premium costs of $2,500 and that if you have a plan that you like you can keep it (Cornyn, 2016). There is validity to both arguments. Plans that did not meet the minimum requirements for coverage are no longer allowed under the ACA, and the price of those plans were lower than what is currently available under the Affordable Care Act (Fontenot, 2015). Historically, premiums have typically grown faster than average income, and from 2005 to 2014 premiums for employer provided plans have increased 48 percent for individual coverage and 55 percent for family coverage (Burns & Ellis, 2016). Going forward, the Congressional Budget Office (CBO) is predicting growth in premiums of 5 percent per year over the next 10 years (Burns & Ellis, 2016). A year over year 5 percent increase in premiums is not a cost savings, but an increase. Any reductions in premiums would have to be measured as a reduction of the rate of increase year over year for 2005-2014 of 5.3 percent average per year for individuals and 6.1
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