How the Obamacare affects demand health insurance
Before the introduction of the Obamacare, demand for health insurance was not based on the demand and supply law but rather on the need for one to be protected in emergency cases. After the introduction of the Affordable Care ACT, the demand for health still is based on the want to be protected in emergencies, but the costs applied affects the demand for the health insurance (Cutler, 2015). The cost assistance introduced by the Affordable Care ACT insinuates that more people can get coverage of the health insurance. The increase of out-of-cost and demand has resulted in problems in various states in the US.
The Affordable Care Act (Obamacare) was implemented to incorporate the low-income individuals (Cutler, 2015). Since the number of low-income earners is on the rise, this means that the demand for the health insurance is anticipated to increase and therefore affect its supply. This health act briefly gives the state-level evaluations of the expanded demand for health care services that is expected to result from the stretched out access to hospitals and the capability of the current supply of suppliers to suit the foreseen increment in demand. It is projected that the health care facilities will attract an average of 1.3% additional visits in one week. The 1.3% increase in individual visits to the healthcare centers will account for 3.7% increase in demand nationally.
Effects of Affordable Care Act (Obamacare) on the average price of health insurance
The subsidy introduced by the Obamacare will most likely result in greater demand while the supply of the services will remain constant. Consequently, the price of the health insurance will rise drastically (Hannley, 2014). The healthcare predicament involves how much is spent on the healthcare, and how much the health care services are utilized. Statistically, America over-utilizes the healthcare system.
The CDC estimates that a lot of money is invested in the health care sector. The cost of the health on the Health Insurance Exchange policy will depend on various factors. Most importantly, the income and the plan in which an individual chooses to purchases will be the prime factors. It is projected that the Obamacare exchanges will drastically lower the insurance premiums from 17% to 10%. A section of the Affordable Care Act is centered on ensuring that the healthcare provided is affordable. The availability of discounts for those individuals who pay more will aid them in paying for the health insurance premiums.
Effects of the Affordable Care Act (Obamacare) on supply for health insurance
The increases of 1.2 on average of the additional healthcare centers visits will necessitate sufficient supply to accommodate the demand. The insurance coverage will be expected to provide customers with state-to-state healthcare assistance. To meet the increased demand, the supply of health care centers and medical practitioners will need to be sufficient (Lanford, D., & Quadagno, 2015).
Technological advancements and recruitment of more medical professionals will improve the medical insurance sector. Though the demand for healthcare services will probably increase drastically, the supply of medical services will likely remain the same which will cause a shortage of services. Mal-distribution of the health services is apparent in many states in the US. Enactment of the Affordable Care Act (Obamacare) will radically increase the numbers of healthcare centers as well as health professionals in the marginalized and rural areas.
References
Cutler, D. M. (2015). From the Affordable Care Act to Affordable Care. Jama, 314(4), 337. doi:10.1001/jama.2015.7683
Hannley, P. P. (2014). AJM Ventures into ‘Obamacare’: Shopping the Affordable Care Act Marketplace. The American Journal of Medicine, 127(3), 169-171. doi:10.1016/j.amjmed.2013.12.016
Hall, M. A., & Lord, R. (2014). Obamacare: What the Affordable Care Act means for patients and physicians. Bmj, 349(Oct22 7). doi:10.1136/bmj.g5376
