Question

Explain two features of the Affordable Care Act that are likely to cause an increase in health spending.

Answer 1

ANSWER:

GIVEN THAT:

  President Obama signed the Affordable Care Act on March 23, 2010 that puts in place comprehensive health insurance reforms.

Following are two main features which can increase in health spending.

1.APPEALING INSURANCE COMPANY DECISIONS:

If there is no way or no third party where consumer can file an appeal against dissatisfaction in coverage of claim , he will not be confident to seek insurance.

However ,law prestablishes an external review process that provides consumer   with a way to appeal coverage determinations if they are not satisfied or claims to their insurance companies .

2.EXPANDING COVERAGE FOR EARLY RETIREES:

Because of high rates in market ,Americans retiring without employer-sponsored insurance and before their eligibility for Medicare often see their life savings disappear.

This new law has provided employment based plans to those who retire between 55 and 65 as well as their spouses and dependent’s to provide them needed financial help .