Question

Research and identify TWO potential “unintended consequences” of the Affordable Care Act (ACA) as related to

private health insurance market reforms. (This means that issues related to Medicare and Medicaid are NOT

relevant for this assignment!)

Describe each unintended consequence and report on the current status. Is there evidence to document the

unintended consequence? How is the unintended consequence being assessed, evaluated or quantified? Who

is impacted?

Answer 1

The biggest unintended consequences of ACA is consolidation in hospital industry where the numbe rof nergeer6and acquisitions have risen from 12 to 26 post ACa implementation.

Secondly the other biggest unintended consequences are increased taxes to fund newer investments because if the impairments charges government takes due to ACA.

These reforms are now modified as Trumpcare where hospital monopoly and high prices due to excessive mergers are scrutinized at every stages. The merger acquisition activity now has drastically reduced and hence prices have stabilised across majority hospitals.

To fund newer expenses government looks to borrrow from US Fed as well as set of International banks. Infact taxation has been reduced in Trump administration to widen tax paui g base and as results earn higher revenues which hasbeen witnessed as an increase of 3% in revenue due to lower taxation .

The citizens have largely benefited from lower prices and lower taxes and so has government into increased compliance and wider tax base.