Obama Care: Pros and Cons - Report Example

Obama Care Pros and Cons Numerous US citizens have been uninsured and underinsured throughout history. As a result, President Obama established two bills to help support affordable healthcare among US citizens. The Patient Protection and Affordable Care Act also known as PPACA and the Affordable Care Act also known as ACA were both designed to support healthcare availability and affordability. This healthcare initiative (PPACA) is also known as “Obama care”. It is unofficial name of the Patient Protection and Affordable Care Act, which was passed into law on March 23, 2010. The name was created by critics of President Obama’s efforts to reform health care as they, critics, did not believe in Obama’s though regarding health affairs (Pipes & Sally 29). The president believed that by doing this, people will think that he cares about patient’s welfare, hence his strong campaign on this. This bill provides health care coverage at affordable rate to those who afford it or was denied coverage for a preexisting health condition which may have affected the patient for a considerable period of time. Under the bill, insurance companies were given guidelines on how to cover expenses of insured citizens (Pipes & Sally 32). As a result of the bill, all US citizens are required to receive benefits. This act supports affordable patient protection and medical care. By bringing up this act, the president was after various things that he thought would highly benefit US citizens including setting up a health insurance market place where US citizens could buy a health insurance that had been subsidized and fairly regulated by the federal states (Abrams, et al 45). Various controversies have been experienced after its enactment and its real benefits are yet to be felt by the entire American population. The Obama health care bill was developed to help establish financial support and greater health care availability to uninsured and underinsured US citizens. There has been a pronounced controversial debate over the establishment of this new law as many believe that this law is devastation to individuals and families alike causing a severe financial burden and invasion of individual healthcare rights and availability to the citizens. Others believe that this new law will benefit the health and welfare of the people by providing affordable health care to those who otherwise would not manage such benefits Abrams, et al 67). Before the act was turned into law, people had problems accessing medical services. There was discrimination in those departments and mainly women suffer as a result as they could not access medical services as it should be. Patients could be denied to continue with treatment simply because they made a simple mistake during application for medication care. Filing a case in a court of law against insurance firm could not yield positive results also. This is the major reason why the president fought for this bill to be introduced, their rights are respected and they are well protected by their federal governments Pipes & Sally 37). These reforms are against the rising cost of medical attention; hence medical care has become more affordable. Before this act was passed into law, about 16% of Americans including working families did not have a health insurance. There are others who simply cannot afford one, therefore, Obama Care through expanding the Medicaid eligibility and setting up health insurance market places helped these people access quality medical care. According to Obama Care, it is expected that by 2014, all families residing in the US will have health insurance, or should be able to pay a monthly fee on their year-end federal income taxes which will cater for every month they go without coverage. This will ensure health insurance is subsidized (0-9.5%) of their modified gross adjusted income (Davis & John 39). The Patient Protection and Affordable Care Act signed by the president had its roots back then in 1989 in the Massachusetts state when governor Mitt Romney was still in rule. Obama care was modeled from the “Romney care” which was very successful. This idea had been considered for a very long time by experts in US (Obama care facts). According to prestone, the Obama law will be controversial, even though it is democratic, it was not aproved by the two leading parties in the state. He argued that Obama care has damaging policies, which most Americans do not like and would rather not support it Davis & John 38). Even though Mitt Romney was successful to run such policies in Massachusetts, the same thing might fail if it is enacted in other American states. It is also believed that at the enactment of this law, many Americans will depend on the government. Does this mean that Obama is solidifying his Democrat vote since most of its beneficiaries are from the democrat party? A huge number of Americans were against this law even though it was eventually passed and the opposing party saw it as Obamas strategy to gain more popularity. (Culp-Ressler and Igor) argues that by expanding the Medicaid to more low income Americans has encouraged them to go for ER more often. Medic aid was a technique used by Obama government as a cost saving venture by providing more people with health insurance cover which enable them to cut down on medical expenditure during ER (Davis & John 46). This has been seen as false according to some critics who are against the Obama care. The critics also claim that currently, more low income Americans regularly access health care unlike before and they claim this as a waste. It is not true because initially low income Americans could not access medical facilities as they could not afford it. By providing the Medic aid services, they have been encouraged to do so to keep improving the life of an average American (Eisenla & Kristofer 68). Obama care requires everyone to have health insurance in 2014 or pay a tax for not getting coverage. The total amount expected from tax to help support health insurance in America in 2014 will add up to $8 million, which is expected to increase up to 14.3 billion dollars by the year 2018. In the next ten years, the health insurance might exceed 100 billion dollars. These medical insurance plans include Medical care, Medical aid, Tri-care, veterans’ health program, a medical health program offered by employers, individual health insurance plan, a grandfathered health plan, government sponsored health program and a state health benefits risks pool plan (Eisenla & Kristofer 70). More citizens are likely to face a tax hike especially those who will not have purchased a health insurance and did not qualify to get a Medical aid by March 2014. This tax is likely to increase up to 2% in 2015 and 2.5 percent in 2016. In fact, about 1.2% of the American population will rather pay taxes than buy a health insurance and this is likely to cost these citizens more than $54 billion (Eisenla & Kristofer 57). Taxes have continued to increase ever since 2013 as individuals on incomes exceeding $200,000 and on couples whose income exceeded $250,000 jointly. Their taxes were increased from 1.45% to 2.35% as Medicare taxes on incomes above threshold. These people also pay an additional tax of 3.8%. Other taxed properties included dividends, capital gains, rent and royalties which were above threshold. In 2013, all manufacturers and the importers of medical devices had to pay an exercise tax of up to 2.3%. In door training facilities also started to pay a tax of up to 10%. This has highly discouraged them to hire more employees and creates a negative impact on job creation opportunities. From 2013, many families deduct about 10% of their income which they use as medical expenditure. This is in contrary with years before the Obama care Act where they only deducted at least 7.5% of their income (Summer & Laura 7). Insurance company changes plans to ensure that they meet the Obama care requirements. Many companies have canceled plans that dont meet the minimum requirements. This is an online platform where all US citizens can easily access, compare health insurance prices and shop for a quality healthcare they can easily afford. Through these markets, the citizens can receive cost assistance by being offered lower premiums, reduced costs or they can be approved for a Medicaid. The market places are found in each federal state. If an individual makes fewer than 400% of the federal states’ poverty level, the individual is immediately given cost assistance through the same market place in the individual’s state they applied from (Summer & Laura 43) Medicaid will be made available to those who cant afford insurance. It will to allow many citizens be extended in many states through the support from the federal governments subsidies. It will be extended to those who earn up to 133% of the federal poverty level. Thats $15,281 for an individual or $31,321.50 for a family of four in 2013. The poverty level usually increases each year as inflation takes its effects. States are expected to expand Medicaid programs However, not all states have elected to expand Medicaid, even though the Federal government will subsidize it. If you live in a state where you are eligible for Medicaid, but the state wont give you coverage, you wont have to pay the tax if you cant get insurance (Singahl & Shubham 17). Employers will also be considered and be given tax credits, and tax breaks in case they have less than 25 fulltime equivalent employees this will ensure that their employees have health insurance. This care also protects the consumer in that no one can be dropped when sick, or denied treatment whatsoever. It makes sure that everyone can access treatment even those with life time pre-existing conditions. Citizens are now in a better position to fight insurance companies. Uninsured citizens who cannot afford it due to low income will get insured through the expanded Medicaid. This law will cut out waste, reallocate government funding, make sure that all systems in the health industry are working, and make sure that Americans have quality health care services (Singahl & Shubham 20). This strategy was laid down by President Obama to get many people get insurance. This will bring in more premiums to aid in paying claims. It is a risk management strategy since the US government maintains that everyone should be entitled to a health insurance even if they have pre-existing conditions. The only affordable way to achieve this is through the Affordable Care Act (Preston). There is population that will be exempted from the dictated Obama care penalty. This includes all those who are part of a religion that opposes the benefits gained from insurance companies or is not a documented immigrant. Other considerations will be given to incarcerated people, members of Native American tribes, and families with lower income. The law has various aspects that are very important in each of the US citizens’ lives. This law will ensure that the quality of medical care received by all Americans is of good quality since it aims at preventing sicknesses and promoting the welfare of US citizens. It also raises the standards of basic health care insurance. Before the Obama Care, there were various conditions one had to meet so as to have quality medical access including the issue of gender. All these conditions have amicably been dealt with in this law. Millions of US citizens who earn a low income or from the middle class will be able to access quality health care through discounts which will be easily accessed in the health insurance market places. This law will make sure that that all legal US citizens can easily access medical care (Pipes & Sally 40). Individuals can access medical care freely and not through the hands of medical companies as it was before. All employers are entitled to pay a health insurance for their employees who meet Obama’s standards; otherwise, they will be faced with a penalty. This penalty will take care of purchasing insurances for employees who do not have a health insurance through a public health insurance exchange instead of using Emergency services which are rather expensive. According to (AZModerate Rants), over 30.1 million US citizens have already purchased their health insurance from private organizations and these insurances have been cancelled mainly because they do not cater for all the Obama care principles. The cost of replacing these insurances is high costs like maternity care should be included though they do not need such services. About three to five million people might lose company sponsored health plans already in place. If coverage is increased, costs will definitely go higher in a very short period. This is because the most offered health services will be preventive and testing. Other complicated services like screening and cancer treatments will lead to the public spending more which the Obama medical bill address them fully. Pharmaceutical companies have also had their share of increased costs whereby by they have to pay a fee of $84.8 billion, which is expected for the rest of the next ten years so that it can help to close the gap being experienced in the Medicare. If these companies pass this expenditure to their customers, then it means that customers will purchase drugs at a higher cost compared to previous years. This Act also states that by 2018, insurance companies will have to pay an exercise tax of about 40% which will help realization of the Cadillac health plan. The Cadillac health plan will cater for people who are at a higher risk like older employed people and those who do dangerous jobs (Singahl & Shubham 25). Obama care has huge impact in the American lives. Apart from affecting the upper class in America, it will highly affect the middle class since they are the ordinary American citizens. It is has been unquestionable that this Act was mainly developed with an intention of utilizing policies that will tax businesses to improve their employees’ welfare. Most middleclass Americans have not had their income increased and worse still, some of them have their income being sliced especially during the great recession period, which affected the American economy. With the new Obama care strategy, high insurance costs, and new taxes mean more expenditure and thus, the middle class will have to struggle to make it through (Singahl & Shubham 29). Even though this act was designed to decrease the number of uninsured Americans, and reduce costs during medical care, experts predict that it might have an exact opposite effect. Many might lose their jobs, and it might be more challenging for these people to get new jobs since job creation opportunities will be limited, and as a result a crushed American middleclass. This act might also prompt many American employers to stop paying health insurance for their employees and many middle class Americans might find it expensive to pay for substance coverage yet they have not even touched a drink or a drug (Singahl & Shubham 25). Obama care was also designed to support employees to gain additional employer sponsored insurance. Business Owners are now required to provide insurance for their employees effective January 1, 2016 if they have 50-99 employees. According to (Howard & Paul 15), it is important for the government to formulate policies that will enhance the well-being of its citizens through affordable health care. By carelessly enacting this law, the Obama bill can cause serious repercussions in business sector. For instance, a huge number of employees can change jobs without the fear of losing their medical insurance. The huge burden that employers will carry will limit their capacity to grow their businesses and even reduce the amount of pay employees take home at the end of the month. More businesses especially the small employers might have no option but to drop coverage as insurance will become more expensive and this might lead to more people being uninsured. The expanded Medicare and Medicaid might also swamp state and federal budgets and this might threaten the economy increase taxes and cut federal government spending. (Howard & Poul 12) argues that the affordable medical act will only make things worse for American citizens. In fact, it has added problems to what they already have. It has added cost pressures, which will only drag the American economy behind and make job creation a hard to crack venture. According to (Singahl & Shubham 29), the ACA might have tremendous changes of how employers will sponsor their employees’ health plans. About 30% of employers will stop offering employer sponsored insurance to their employees come the year 2014. Others will have to find alternatives to curb up this expense like offering higher salaries for their employees while at the same time dropping their insurance plans. Because of the Obama care Act, Patient Protection and Affordable Care Act, health care for women have been improved. According to (HHS.gov/HealthCare), a research was done on women’s preventive health care services after the enactment of Obama care law and results reported as follows. There has been immense improvement on women’s health using the plans put in place by the Obama care policy. Over 20.4 billion American women can now easily access expanded preventive services with no cost sharing after the acquisition health insurance. They can easily access services like cervical cancer screenings, prenatal care, flu and pneumonia shots and their babies’ welfare have been enhanced. By august 2014, many women will be able to receive increased preventive services like domestic violence screening and contraceptive services (Preston & Bryan 23). They will also have maternity and many private insurance companies will deduct insurance rates especially for women since they used to be higher prior to the Affordable Care Act. Women now enjoy more Medicaid opportunities than men and this has helped them to gain personal assistance and long-term care. After being enrolled in Medicaid plans, over 2 million women were able to save up to 1.2 billion dollars. In addition to this, community health teams have recorded that there is improved management of chronic diseases, which attack women more often than men (Singahl & Shubham 32). Due to increased number of people having access to affordable medical care, hospitals and health care facilities have raised an alarm on increased demand for services since the Patient Protection and Affordable Care Act bill was signed by President Obama. This increase has vividly been noticed in public health facilities. Health providers in these facilities not only coop up with this increased demand of medical services, they have also raised an alarm regarding the diminishing resources which might not be enough for the US citizens. It is now up to the federal state and the government to make sure they control Medicaid spending. As noted by (Abrams & Melinda 67), the US has highly neglected primary care for a long time. The Patient Protection and Affordable Care Act will make sure that this sector comes alive again. It is expected that this sector will highly improve the health of its citizens, and the welfare of health givers and payers of this service. By reviving the primary care in US, provisions for temporarily increasing Medicare and Medicaid payments to care providers will be enhanced, innovations will help in improving the delivery of medical care, and there will be expectation of improved health outcomes (Culp-Ressler et al 19). The government will also offer assistance and support to primary health providers and will largely invest in the growth and development of primary health care system. If the primary health care in United States will be improved, then its citizens will enjoy a superior quality of medical care, better medical care for its population and easy access to health care (Preston & Bryan 19). (The Heritage Foundation, 2013) argues that many Americans might lose their current health plan especially about 49% of Americans who benefit from their employers. Many insurance design plans have been tampered with. For instance, the grandfathered health plan is expected to meet other new benefit mandates. After the ACA law had been enacted, further regulations were given by Obama administration, which makes it even more challenging for individuals with insurance to maintain the type of insurance they have since they do not meet these regulations (Cannon & Michael 13). Most people’s health insurance plans which they had purchased do not meet the Obama care requirements and they were likely to be refused. Many US citizens had purchased a health plan they were sure to maintain since they were not receiving any assistance from their employers or the government. Now they will have to get a new one, which caters for services rarely, needed like maternity, habilitative and pediatric vision care (Eisenla & Kristofer 34). These plans should cover about 60% of expected medical expenditure and many insurance companies had to restructure their designs to meet this requirement. This means that about 85% of Americans will have to cancel their pre-existing health insurance plans and adapt new ones as dictated by PPACA. Over 69% of small businesses insurance plans covering over 41 million Americans will also be canceled mainly because they do not meet Obama care requirements. This care dictates that a single person employed by a small business must be deducted about 2000 dollars to cater for health insurance. Not many small businesses meet this requirement and this means that they might lose their health plan or face higher cost for losing their insurance (Eisenla, Kristofer 37). In conclusion, Obama’s Affordable Care Act, is an excellent idea as it emphasizes on quality medical welfare for all US citizens. Will the available resources be enough to realize this dream? Many Americans will continue to view this development as an added responsibility since it affects most of their lives including the most sensitive part “tax” which has continued to go up affecting most crucial parts like employment, economic development, company growth due to decreased capital creation, therefore affecting the capacity of these firms coming up with job opportunities as inflow of capital is minimal (Davis & John 40). Currently, the ACA can be viewed as an additional task to the US citizens which must be accomplished using the already limited funds. Employees face a risk of payment reductions after they pay large amounts needed by the insurance to cover for medical insurance as indicated by the government (Summer & Laura 44). Even though, this policy will make sure that the once assumed primary health care will be revived in United States and this means that more people will have an easy access to medical care that is quality and affordable. Care providers could also reap massive benefits. This will improve Americans living standards and its economy also boosted as a result. It may not be right to only believe that the American lives will be improved as a result of the Obama Medicare bill. This may have strained the government as it requires them to pump resources to it throughout, gaining less or nothing from it since it is a service program. These are resources that could be used for other development projects which yields much returns. This cannot be done as human life is more basic than anything else. Works Cited Abrams, Melinda, et al. Realizing Health Reform’s Potential. USA: The Common Wealth Fund, 2011.Print AZModerate Rants.com. 4 March 2013. web. 22 March 2014. Cannon, Michael. "US HealthCare:what Hath Obama Wrought." Diplomatic Magazine (2013): 36-37.Print Culp-Ressler, Tara and Volsky Igor. The latest Obamacare controversy doesnt Actually mean health reform is faliing Apart. 3 January 2014. web. 19 March 2014. Eisenla, Kristofer. The Affordable Care Act in Brief.Washington DC: NASE, 2013.Print HHS.gov/HealthCare. 13 April 2013. web. 21 March 2014. Howard, Paul. The Impact of the affordable care act on the economy, employees and the workforce. Manhattan: Manhattan Institute for Policy research, 2010.Print Obama care facts.com. 2013. web. 21 March 2014. "Obamacare:A nonpartisan review of what it is and what it is not." Pro-con.org magazine (2013): 2-160.print Preston, Bryan. The top 10 reasons why Obamacare will always be controversial. 16 October 2013. web. 19 March 2014. Singahl, Shubham. How US Health care reform will affect employee benefits. June 2011. Web. 22 March 2014. Summer, Laura. The Impact of the Affordable care act on the safety net. Washington DC: Academy Health, 2011.Print The Heritage Foundation. 15 November 2013. web. 29 March 2014. The Patient protection and affodable care Act. Washington DC: The US Government, 2010.Print Pipes, Sally. The Truth About Obamacare. Washington, DC: Regnery Pub, 2010. Print. Davis, John. The Barack Obama Presidency: A Two Year Assessment. New York: Palgrave Macmillan, 2012. Internet resource. Read More