Question

"Even though the Obama administration and Congress built the ACA on the existing system of employer-sponsored insurance, it had significant ramifications for much of the healthcare system. Under the mandates of the ACA, (1) insurance companies were required to provide coverage for people with preexisting conditions, (2) payments to hospitals for accepting a higher number of economically disadvantaged patients were phased out, (3) doctors were required to adapt to new payment models, (4) reimbursements for hospitals and health plans were reduced, and (5) benchmarks were used to penalize hospitals for not performing up to certain standards. One part of the healthcare industry that favored the ACA and voluntarily contributed funds to help defray its cost was the pharmaceutical industry. Prices for prescription drugs continue to rise. Requirements for Medicare to use its negotiating power to reduce drug prices were scrapped from the legislation before it was drafted. The law did not include provisions to allow the re-importation of drugs from Canada, where prices for prescription medicines are much lower. For all practical purposes, the pharmaceutical industry continues to conduct business just as it did before the enactment of the ACA.

1. Why did other segments of the healthcare industry seemingly make greater sacrifice than prescription drug manufacturers?

2. Would it have been possible to alter the way drug companies do business as part of Affordable Care Act and still succeed in enacting the law?" Why or Why not?

Answer 1

1. Why did other segments of the healthcare industry seemingly make greater sacrifice than prescription drug manufacturers?

One of the reason is the influence the prescription drug manufacturers as they have very deep pockets due the the High Profit margin they operate, they are united form a sort of Cartel. Other reason can be the high cost of Research and development involved.

Where else the healthcare industry is mostly divided under Hospitals, Medical professionals,Insurance companies etc. there has been various acts and laws created to have a control over them.

2. Would it have been possible to alter the way drug companies do business as part of Affordable Care Act and still succeed in enacting the law?" Why or Why not?

Its possible, we have to take example of Canada or European countries where the drug cost is affordable. Administration should keep a max pricing sealing for the drugs which are used by Majority i.e. insulin and also for the ones used to save in life threatening i.e. cancer etc.

Government can help in research and development of drugs thru PPP(Public Private Partnership) so that high cost of R&D in pharma can be shared by govt. and pharma companies and the users have to pay less.