Health Insurance Association - Coursework Example

Introduction Insurance can be defined as an agreement where a person commits to making a regular payment to a given company with a promise of reimbursement in case the covered event occurs. Alternatively Health insurance association defines health insurances as the coverage that provides payments benefits as a result of sickness or injury. The US federal government has laid down the process of ensuring that every citizen in the Unite Stated has signed up for health insurance policy. Why is the federal government not extending or delaying the requirement that everyone has health insurance? The health care reform law which was a major component of president Barrack Obama presidency has come out in a significant way to and strongly to encourage employers to maintain or expand health coverage. The movement has been enhanced by the requirement in the US that every employee who has more than 50 employees should seek health insurance cover for his/her employees. It is estimated that half Americans that is an approximate 170 million people are covered by employer-sponsored health insurance which was as per thee census data taken. The Obama administration is not willing to make any delay on the implementation of the Obamacare’s employer mandate where it has established that all firms should cover their employees offer health coverage or pay fines until 2015.Connectively, having prepared the rolling out of the private health insurance, ObamaCare, and the overall federal state economy. According to researchers, the delay of the mandate will have more people to enroll in the Obamacare’s subsidized insurance exchanges due to shared responsibility payments (Getzen, 2010). Additionally, if the rolling out is delayed the drive may raise the cost of labor, therefore, increasing unemployment. The employers are willing to be spared the mandate for one more year. Politically the democratic are not willing to have the promise they made to the citizen be not fulfilled before their time on office comes to end. Additionally it is also argued that health that the US health- care system is mostly the tax codes that have people covered through their employers instead of shopping for their own cover. Nevertheless economist has stressed that it is better for a collective buy which could be easy done by the employer that individuals since it is much cheaper and easy to manage through their salaries. The plan estimates that about 96 of employers will be subjected to the responsibility of covering their employees (Getzen, 2010). How would an economist explain the reasons for this requirement and why it should not be delayed? Since enough time has been allowed for the companies to consider simpler ways that they are expected to do their reporting as consistent to the law secondly time allowed making health coverage affordable and also easily accessible for their employees. The need for all employers to move to the market in one peace which will make the government be able to lay down a working plan for budgeting for its gross domestic product GDP on health allocation for its citizens, additionally the equal coverage rules which state that the tax officials should enforce the provision for the allocated period. The initiative to change and convert the insurance cover from individual based to group or employer based policy will see that even those who were not willing to purchases the cover will have no option since it shall not be their choice to make as concerning the purchase of the policy, significantly,, this will boost the number of people who will be under the coverage hence a high percentage of Americans shall be covered. Insurance covers that are employee managed would ease the government’s spending on health and medical care provisions since they would be taken over by private owned insurance companies who would also pay taxes to the federal government (Macdonald, 2014). How would an economist who opposes this legislation (political position) explain the economic reasons why it should or should not be delayed or reversed (economic reasons)? Connectively, they will be far more stretched than usual this will in turn make them formulate a way to balance their returns with spending that will call for laying off some employees. Unemployment will be on the rise due to effective of the legislation. Alternatively, growing companies will be in fear to fail to meet the required obligation of covering its permanent employees due to a limitedness of funds. For those who had already bought the cover they are no allowed to have an advantage plan but all shall have one option. Additionally, the premiums are reasonable, however, the deductibles are enormous which makes the affordable care act to be more costly than what it should be. The house majority leader, Mr. Cantor, noted that that the business mandate is bad for middle class families who intend to be part of the cover which will in turn pose a threat and harm to the economic growth since there will be few taxes collected (Kelly, 2014). According to the congress budget office, if the move to delay the rolling out of the mandate, the Obama administration will course a $12billion in lost tax revenue which is not inclusive to other additional costs. The government cannot afford to lose the funds hence have to push for the effecting of the said mandate. Since the act requires that all full time employees to be covered with their employers some communities are expected to reduce or report a low number of full time employees that will make them not to qualify for the subscription of the same act. Never the less, if the sometime to the deadline will be extended, it will give time for health insurance to allow customers more shopping day which will make more people sign in for the plan hence increase in funds that will lead to effective cost and responsibility sharing. The move to have every citizen in the United States is one of the most thought off mandate since it shall ensure that the health problems are catered for hence having a health nation and also economically the government spending on health care shall be cut down and in turn receives returns in form ox increased taxes from insurance companies (Getzen, 2010). Reference Getzen T.E 2010 Health Economics And Financing 4th edition Wiley, J & Sons Kelly, K. 2014 The Obama Administration First Delayed The Employer Mandate Last Year retrieved from< http://www.usatoday.com/story/news/nation/2014/02/10/aca-no-longer-applies-to-50-employees-and-under-in-2015/5370055/> on 15th April 2014 Macdonald E 2014 28delays and counting to health reform retrieved from< http://www.foxbusiness.com/economy-policy/2014/02/12/28-delays-and-counting-to-health-reform/> on 15th April 2014 Read More