Effects and Impacts of the Affordable Care Act - Essay Example

Affordable Care Act Summary The content that is below is about the Affordable care act which is a broad area that touches on different things. It touches on the Economics Welfare, Economics of the Public Sector, the organization of the industry and the firm behavior. The essay reviews the impact of the Affordable Care Act on the health care workforce. The essay also touches on the projections that relate to the impacts of the Affordable Care Act. The essay dwells much on the impacts and the effects of the Affordable Care Act in America. The essay also lists what the work of the Affordable Care Act emphasizing on the reforms in the health care which range from quality health insurance. The article also briefly discusses the effects of the Affordable Care Act on the income inequality. There are also the effects of the labor in the labor market. Effects and Impacts of the Affordable Care Act The Affordable Care Act (ACA) was put up in place on 23rd March, 2010 by president Obama under the Affordable Care Act (ACA). This turned out to be a great reform in the medical system for 45 years. If the ACA promises is implemented fully the result might lead to a better health care for the people of the United States. The ACA is part of the legislation and has got a significant impact in the health care system. 17 percent of the Gross Domestic Product is used on the health care. The ACA is meant to help the non-employer insurance in the United States to make changes to the health insurance. It consists of the reforms to the non-group insurance. It is also required that that the individuals should buy an individual market. The third reform is when the government offers to give insurance to the families that earn lower income. The ACA provides finances to its subsidies through many sources. One of the sources is through the reimbursements to the private Medicare advantage programs to enable the state to offer Medicare program for the seniors. The other source is reducing the Medicare reimbursements by reducing the inflation adjustments in the hospitals for a year for their reimbursements in the Medicare program. The other source is by increasing the medical payroll and this would lead to the extension of the tax to the capital income. Other sources are the excise taxes and the Cadillac tax (Aaron 106). When it comes to the case of the rising costs the in the United States, the government tries so much to handle the problem in the best way possible. Starting with the Cadillac tax, it reduces the health insurance plans resulting to the market for the health care. The independent payment advisory also plays a major role in the fighting of this problem. This is achieved by the re-designing of the reimbursement of the providers through the Medicare to reduce the cost and to ensure that there is quality. Another way is through a new research institute which helps to study the effectiveness of the medical treatments. There are many programs that examine the organizations and the medical treatments to get to know which treatments are cost effective. The health insurance is estimated to cover 30 – 34 million people. The training of new staff such as the new physicians and health professionals takes many years and would go for even a decade (Nowak 56). The families and individuals are likely to face long wait times, difficulties in the accessing the providers, increased costs and shortened time with providers. This will be led by the lack of the graduates from the medical and nursing schools and also an increase in the innovation in roles and the responsibilities among the medical professionals and the nurses. The medical staff may be so much willing to help but the logistics of the expanded care delivery but the shortage of the personnel and the limited resources makes their good intentions of the national health law to get diminished. The transforming changes that have been brought up by the law are likely to negatively affect the health care workers and their way of providing their services. The changes that have come up with this law will increase the workloads and increase the regulatory burdens. It will also come with new penalties that will bring changes and reduction in the payments. The rules will also disregard the values and the preferences. All this will result to increased stress that will destabilize the health care industry. All these factors brought up together will be a threat to the access and the quality of the health care to the people of the United States of America. This will not be the contrary to the expectations of the congress and the president who passed these rules (Nowak 74). However, the good efforts of the medical professionals to increase the workforce and the shortages are zoomed to the health care profession. The workers fail to achieve the demand that is associated with the growth of the population and the aging population. The new demand for the medical services for the many people who are expected to be enrolled in the Medicaid and the federal and state insurance exchanges and the shortage of the workforce shortages could lead to a catastrophe. The affordable care act has got an impact on the economy. The negativities of the program are evident. The bill that was passed has received many provisions that prevent the growth and the employment. The bill also facilitates the employer mandate to the payment for the health insurance coverage. It also increases the contribution of the Medicare rate for the workers who earn high income and the taxes on the medical device companies, and also the health tanning salons and the insurance companies. These provisions will cause a significant impact to the economy and this will result to a big worry to the economists. Most of the negativities of the ACA were seen clearly when it was announced that the services would result to the increase of the part time labor that will avoid the payment of the requirements for a full-time workers. These provisions are under the Affordable Care Act. The other effects of the affordable care act and the president declared that the hours of work in the restaurant industry since the month of March in the year 2010. The Act has affected the employer and the employee. The workers are said to value the insurance and have strong faith in it. They believe that the mandate is there to benefit them. In Massachusetts the federal laws will change and bring about a different result in the Affordable Care Act. The affordable care act is good news to the American companies and the workers. The Act will also help so much in the building of the economy. This effect will mostly be felt when it comes to the cost of the cost of the Medical care. The medical care has been a problem to the small businesses in a long time and now that the Affordable Care Act has come in it will create a high impact to these since there is a reduction in the cost of these services. Before these people in such companies would complain that there were human resource problems, reduced competitiveness from other companies and increase in the total compensation due to the rising health cost (Eibner 98). The relationship between the employment and the health costs is that most of the industries that offer health care in the past had lower employment growth as compared to now when the health care has been improved with effect from the Affordable Care Act. The Act is aimed at resolving the health care problems that face the workers and cause a reduction in the spending increase. The Cadillac tax on the expensive health insurance has effected as a result of the Affordable Care Act. The payment transitions have also changed and the result has been noticed by the employers and the employee. The employer premium growth has slowed and the Affordable Care Act has caused this. As a result, the slowing cost growth there is the likelihood of the increase of the jobs in the next decade. In the public sector, the impact is not assessable (Aaron 42). The president by passing the Affordable Care act believes that the medical care cost will increase by 1.5 percent every year and the results of this would be gaining the gross domestic product of 2 percent by the year 2020 and an estimate of 8 percent by the year 2030. The Affordable Care Act makes it possible for the productive investment in the economy of the United States of America. The Affordable Care Act has also brought changes to the work force. It has led to the elimination of the distortions. The Affordable Care Act would bring in other changes such as the elimination of the costs that were being incurred if somebody were absent from work under common conditions such as persistent headaches, back ache and mental illness. The affordable care act will create an impact on the people of America that around is at 300 million. The American’s lifespan has gone high because of the help of the medical technology and the advanced care management. The result will be felt by the by the health care work force in the future because of the aging population which is much prone to the chronic diseases. The ACA has led to the reauthorization of the forgiveness and the repayment of the loans, increase in the Graduate Medical Education and increased funding for the public health service. The problem is that there will be shortages that will thereafter lead to increased mortality for the Americans in the rural setting (Eibner 143). The Affordable Care Act relies on the Patient Centered Medical Home model (PCMH) and the free preventive care in order to be effective. The ACA will also lead to a higher intensity when it comes to caring. Analysis The analysis shows that the gains that have been estimated and the losses and the gains are much affected by the household income. The measure that is mostly put in place is the census Bureau’s money income. In this case the health insurance is not counted as income. The ACA is said to have effects on the income. This applies even to the income distribution. In this case some of the people will experience slight increase or decline when it comes to the income. Americans who are in the bottom tenth of the distribution happen to gain very little income and this proves the effects of the income to the households. There is a strategy for the estimate that is implied by the consumer surpluses and these results to the coverage provisions in the ACA. The differential take up rates is based on status of health to give adverse selection and unraveling of the markets of insurance. The Patient Protection and Affordable Care Act are also referred to as “Obamacare”. It is named after the President Obama who was the founder. The ACA is able provide through the employer mandate and individual mandate to pay fines. The provisions will be effective in the year 2014. The impacts of the ACA will be much projected to the state exchanges, Medicaid expansion, payment reform and new models of care and costs and coverage. Conclusion The ACA improves the incomes of the Americas and their well-being. The goal of the ACA is to make health coverage be affordable through the reforms insurance arrangements and by cutting down the insurance purchases of the families that are not well up. With all these service offered by the ACA the United States will experience a good economy. This will be made possible by the working nation since the country will have many people working when they are healthy and not prone to diseases like before. This will be a great improvement to the economic status of the United States. Works Cited Aaron, Henry J, and Gary T. Burtless. Potential Effects of the Affordable Care Act on Income Inequality. N.p., 2014. Print. Eibner, Christine, Amado Cordova, Sarah A. Nowak, Carter C. Price, and Evan Saltzman. The Affordable Care Act and Health Insurance Markets: Simulating the Effects of Regulation. Santa Monica: RAND Corporation, 2013. Print. Landmark: The Inside Story of Americas New Health Care Law and What It Means for Us All. New York: Public Affairs, 2010. Print. Nowak, Sarah. Effects of the Affordable Care Act on Consumer Health Care Spending and Risk of Catastrophic Health Costs. N.p., 2013. Print. Patient Protection and Affordable Care Act: Irs Managing Implementation Risks, but Its Approach Could Be Refined: Report to Congressional Committees. Washington, D.C.: U.S. Govt. Accountability Office, 2012. Print. Read More