In March 23, 2010, the US Federal Government implemented the Patient Protection and Affordable Care Act (PPACA) also known as “Obamacare”. This law, signed by President Barack Obama overhauls the US healthcare system, which was formalized in 1965 through the establishment of Medicare and Medicaid. This law’s objectives are to decrease the number of Americans that do not have health insurance and reduce the health care costs, through a series of mandates, subsidies, tax credits and other mechanisms that will increase the number of insured Americans and make the delivery of healthcare more efficient thus reducing costs. This bold law is currently being criticised by detractors of the Obama Administration as regressive in that it fosters dependency on the National Government, it espouses larger budgetary requirements for healthcare and stifles the ability of the health care industry to be innovative and responsive. Late last year, the Associated Press (2012) reported that the law was being threatened to be repealed last November 2012 and that: “President Barack Obama’s health care law now appears in implementation in close to half the states, with others playing catch-up and the administration readying a fallback for states not wishing to participate. Friday was the original deadline for states to notify Washington if they would play a role in building new health insurance markets through which the uninsured can get coverage starting in 2014. Though the administration granted a month’s extension, most states have already made their intentions known” Associated Press, 2012).
The law as we know it today has not been repealed but almost three years after the Obamacare was passed into law the question of Americans receiving better healthcare is still debatable. Hawyward (2012) writes that “The election is behind us now, and President Obama won, but the state rebellion against ObamaCare has only grown stronger. Last Friday Wisconsin and Ohio both said that they would not create their exchanges. Most of the resisters and hold-outs have Republican governors, although in Missouri the Democrat governor, Jay Nixon, was obliged to pass on creating the exchange by referendum” (Hayward, 2012).
Undoubtedly, the US healthcare system needs to be reformed. According to Dewar (2010), “The concern over the future of health care revolves around three broad issues: cost, quality, and access. As private health insurance declines and the number of uninsured people steadily rise, emerging public consensus is that the system is in need of reform. Gaps in coverage, combined with the upward trend in medical care spending over the past several decades, add to the commonly-held belief that the U.S. healthcare system is in crisis. Many are concerned over access to care for the uninsured and the prospects for continued access for those currently with insurance.” In addition, Chris Connover of Forbes wrote that “the U.S. health system needed reform was never in doubt. However, that government-run health care was the answer was never in doubt only in the minds of progressives. And there is no doubt that Obamacare puts us firmly on the path towards government-run health care”(Connover, 2012). According to the Congressional Budget Office, the enactment of Obamacare will bring the cost of healthcare spending down for the federal government. In fact, it’s a very little known fact that private companies benefit from the law also. Under Obamacare, families with group income that fall between the 100% and 400% of the poverty line can avail of tax credits that they can utilize in paying for insurance premiums (Obamacare Facts, 2013). Such tax credit may be availed in advance or refunded. These families have no enough money to buy insurance but are considered to have more not to be qualified in the Medicaid. With Medicaid Expansion they can be covered. The federal government offers state government that will have Medicaid Expansion funding of 100% on the first three years and 90% on the succeeding years.
Almost three years after the Obamacare was passed into law, we ask ourselves, how better (or worse) off are we, healthcare wise? The average American will see a reduction in their insurance premiums as an estimated 30 to 44 million individuals will gain health coverage through Obamacare. This means that overall, the quality of health for the US will be better, because of the expanded coverage. In theory, the structural cost of healthcare will be decreased (for example the capital cost will be spread over a larger clientele base and should contribute to a decrease in healthcare delivery costs). Naturally, the direct health costs (medication, etc.) shall increase as the number or healthcare-recipients increases. Forbes’ article on the Obamacare law says that the law itself is doubly bad in that “in terms of policy, is that Obamacare spends trillions of dollars subsidizing the cost of insurance for the uninsured. And most people who are uninsured are young. In other words, Obamacare will more than double the cost of health insurance for many young people, and then the law will turn around and spend taxpayer dollars to subsidize the purchase of this newly costly insurance. Only in Washington does this make any sense” (Fox, 2012). In three years of the implementation of Obamacare, the US healthcare system is categorically better for some sectors of the population and worse off for a few others because Obamacare does reach out to more healthcare recipients than any other health care policy the US has purposely implemented. Obamacare’s actual success or ultimate failure will be seen after 2014, when the law is fully implemented and its phased-in programs are completed. Only then will we know.
References
- Associated Press. 2012. Legacy Assured: Obamacare Gaining Momentum As States Pledge Support. Retrieved from http://newsone.com/2083946/states-support-obamacare/
- Avik, R. 2012. Want to Reduce Federal Spending? Repeal Obamacare’s Steep Levies on Young People. Retrieved fromhttp://www.forbes.com/sites/aroy/2012/11/21/want-to-reduce-federal-spending-repeal-obamacares-steep-levies-on-young-people/
- Conover, C. 2012. Repealing Obamacare in the Voting Booth. Retrieved from http://www.forbes.com/sites/chrisconover/2012/11/06/repealing-obamacare-in-the-voting-booth/
- Dewar, D. M. (2010). Essentials of Health Economics. Massachusetts: Jones and Barlett Publishers.
- GPO.Gov. 2010. Patient Protection and Affordable Care Act. Retrieved from http://www.gpo.gov//BILLS/BILLS-111hr3590enr.pdf
- Fox, S. 2012. Obamacare’s Positive Effects Upon Healthcare Companies. Retrieved from http://beta.fool.com/lifeforcedance/2012/07/10/obamacare-advantages/6625/
- Hayward, J. 2012. States Rebel against Obamacare. Retrieved from http://www.humanevents.com/2012/11/16/states-rebel-against-obamacare/
- Healthcare.Gov. 2013. What’s Changing and When. Retrieved from http://www.healthcare.gov/law/timeline/
- Medicare.Gov. 2012. Closing the Coverage Gap – Medicare Prescription Drugs are Becoming More Affordable. Retrieved fromhttp://www.medicare.gov/Publications/Pubs/pdf/11493.pdf.
- Obamacarefacts.Com 2013. Obamacare Bill: Obama Health Care Bill. Retrieved from obamacarefacts.com/obamacarebill.php. Retrieved on 2013.
