Question

Write a paragraph about the Affordable Care Act. Explain why it was created (e.g. the problems it is attempting to address), potential issues related to its implementation, and the effects it may have on the provision of health services.

4. Should the private insurance industry do more to support this legislation for the general welfare of the public? Justify your answer.

Use in-text citations as appropriate and include a References page at the end.

Answer 1

Solution –

The Affordable Care Act (ACA) was enacted in March 2010 to ensure the following -

1. Ensuring health care at affordable rates and ensuring higher coverage
2. Expanding the state medical programs and covering all adults with incomes below 138% of the federal poverty levels
3. Extend support to innovative health care delivery methods at lower costs so as to ensure affordable general health care.

The ACA is also known as Obamacare and works as a mechanism to ensure 100% coverage of individuals under health insurance or pay a tax instead. This has allowed for inclusion of more health people to be included in the health insurance system which do not currently put in insurance claims and hence this allows for reduction in insurance premium as insurance companies grow in profit. Second aspect of ACA is that state medical programs allow for treatment of chronic diseases before the individual requires higher medical aid. This preventive treatment allows for reduction in medical costs.

The insurance companies can also play a very active role in the ACA as more and more individuals enroll themselves for health insurance companies can pass on the benefits to the users by charging lower premium and also luring the uninsured to get covered under the umbrella. What the insurance companies must also ensure is to cover all individuals and do not turn any individual away because of age or current health. This will ensure the success of the plan and also ensure that insurance companies benefit in the cycle.

Reference - No quotations used. The answer is original and the below book was used only for research.

1. A New Era in US Health Care - Critical Next Steps Under ACA By Stephen M. Davidson