Health Care Reform from an Economist Perspective
Today there are many Americans without health insurance. This is due to the lack of financial resources they have to pay for the insurance , perhaps due to the unemployment rate and also due to those (younger generation) who choose to opt out of paying for health insurance. Many Americans live day to day hoping they will not get sick. From the results of these rates, President Obama signed the US Health Care Reform into law. The health care reform law encases benefits such as affordability, accessibility, comfort and ease for low income families worrying about going broke if they get ...view middle of the document...
It will expand health coverage to all Americans which will make the health care system sustainable, stabilize family budgets, the federal budget, and it will help the economy. This paper will briefly give a history of the health care reform, discuss the Patient Protection and Affordable Care Act, how it will improve the economy, how it affects Medicare/Medicaid programs, and the employer provider health insurance system.
Patient Protection and Affordable Care Act (PPACA)
President Obama signed comprehensive health reform, The Patient Protection and Affordable Care Act (PPACA) into law in 2010 and takes effect in 2014. The affordable care act has 3 purposes to it which are (Gruber, 59): 1) Performs the way people get insured. Everyone is going to have the opportunity to get insurance and is not going to have to go bankrupt to get it; 2) You’re going to be required (mandated) to but insurance if affordable. If insurance cost less than 8% of your income, then you have to buy it and if you don’t, your will face tax penalties. If your insurance cost more than 8% of your income, you don’t have to buy it; 3) Financial Assistance will be available to those who can’t afford insurance on their own. Lowest income families will get free public insurance while lower and middle class will get tax credits to offset the high cost of private insurance.
It is been said to be a historic event because some past presidents and US citizens have fought to try to pass this bill but it was never accomplished until now. On March 23rd, 2010, this health care reform bill became a law in the United States of America. The following was taken from the website: (http://www.foxnews.com/us/2012/06/28/us-health-care-reform-efforts-through-history/#ixzz2DzYSDNmr) . They briefly describe the timeline of the history behind the reform.
1912: Former President Theodore Roosevelt champions national health insurance as he unsuccessfully tries to ride his progressive Bull Moose Party back to the White House.
1929: Baylor Hospital in Texas originates group health insurance. Dallas teachers pay 50 cents a month to cover up to 21 days of hospital care per year.
1935: President Franklin D. Roosevelt favors creating national health insurance amid the Great Depression but decides to push for Social Security first.
1942: Roosevelt establishes wage and price controls during World War II. Businesses can't attract workers with higher pay so they compete through added benefits, including health insurance, which grows into a workplace perk.
1945: President Harry Truman calls on Congress to create a national insurance program for those who pay voluntary fees. The American Medical Association denounces the idea as "socialized medicine" and it goes nowhere.
1960: John F. Kennedy makes health care a major campaign issue but as president can't get a plan for the elderly through Congress.
1965: President Lyndon B. Johnson's legendary arm-twisting and a Congress dominated by his fellow...