Impacts of National Healthcare Reform

Healthcare in the United States has become one of the biggest, most debated issues in today’s society and people express concerns over quality, accessibility, choice, cost and dozens of other factors. Politicians on both sides of the aisle have tried to use healthcare issues to their advantage, Democrats talking about the right that all Americans should have to quality healthcare while Republicans hammer on the tremendous cost and its impact on the government’s deficit and on business. With the passage of the Patient Protection and Affordable Care Act (PPACA) on March 23, 2010, the debate has intensified. The Centers for Medicare and Medicaid Services, the US governmental agency that administers Medicare and Medicaid, found that the legislation would do little to stem the rise in healthcare expenditures which are expected to increase to more than twenty percent of gross domestic product in the next decade. However, at the same time, President Obama stated that “The Health Care Reform Bill we passed last year will slow these rising costs, which is part of the reason that nonpartisan economists have said that repealing the health care law would add a quarter of a trillion dollars to our deficit. My Administration projects significant savings from the health care reform.” This paper will not attempt to tackle the issue of whether the overall impact of the bill will be more positive or negative to the US economy. The goal of this paper is to outline why addressing healthcare is so important economically and then to explore some specific aspects of the PPACA legislation, such as the mandate for coverage, the elimination of pre-existing conditions and coverage rescissions, allowing dependent coverage until age 26, and the additio...

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...s provisions does not guarantee any degree of understanding of the overall impact this legislation will have. However it is possible to look at various aspects of the legislation and forecast the implications of those changes. Certain protections that the bill provides, like expansion of dependent coverage, elimination of pre-existing conditions and prohibition of rescissions of coverage, will positively impact some people but will generally cause higher health care costs. Other aspects of the bill, like the medical loss ratio requirements and the coverage mandates, will impact businesses differentially. I believe in its totality, smaller employers will get some benefit out of the legislation while larger employers are likely harmed. However, it will be years after this law is enacted, and likely modified, that the true impacts of the legislation are known.