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The quantitative analysis of Affordable Care Act - Essay Example

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Most supporters of this policy commend it for considering the low-income earners within the society as the policy enables them to access the…
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The quantitative analysis of Affordable Care Act
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The quantitative analysis of Affordable Care Act

Download file to see previous pages... The policy denies the rich their rightful earnings from the work that they do through the high taxes levied against them, and as such discouraging them from working hard. They earn less when they work for more hours, whilst the low-income earners earn more when they work for less hours. This creates an economic state of reservation, whereby people feel reluctant, especially the low-income earners, from working hard and improving their social setting for fear of upgrading into a higher taxation level (Akosa, Asako and Kosali 45).
Nevertheless, it is imperative to note that the Health care policy brought about the much-needed reforms into the heath care policy. The ObamaCare Act dubbed after president Obama, or the Patient protection and Affordable Care Act (PPACA) promotes social justice and equality by ensuring the low incomes earners who cannot afford insurance policies have the capacity to access them, and as such have access to a higher quality health insurance. The act provides regulations that govern the insurance market, thereby mandating the purchase of insurance. This creates a state of social equality in the health insurance market. Unlike before where these insurance firms preferred the rich and healthy as their most viable and valuable customers, and as such, shunned the low income earners and those with a sickness history, the act compels them to sell their insurance to the low-income earners as well, which promotes social care and affordability of health insurance (Dye 82).
The best theory to use in analyzing this Affordable Care Act is the Theory of Marginal Utility, which is the additional increment to utility obtained through the consumption of an additional unit of good, or service. The marginal utility of the two income brackets in the United States subjected to this policy is very different. For instance, the Marginal Utility for the rich people is much lower than ...Download file to see next pagesRead More
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