Affordable Care Act Essay (1209 words)

Outline

1. Introduction
2. Body
3. Background information
4. Pros and Cons of the AffordableCare Act
5. Conclusion

Introduction

Informally known as “Obamacare”, the Patient Protection and Affordable Care Act was signed in by former president Barack Obama in March 2010. The aim of this act was to ensure health insurance coverage for more people in the U.S. by lowering costs for those who can not afford them. Since Obama signed the act into law, more than a dozen attorneys general has brought lawsuits against it. It has been one of the most debated topics in the last few years.  Many American consumers and owners of small businesses have also criticized the law, regardless of the pre-existing condition. The consumers complain that health insurance premiums have increased because of the law, and they have lost their insurance coverage. The current administration is trying to repeal and replace this law, and there are some issues surrounding the Supreme Court decision. There are arguments for and against the Affordable Care Act. In this free argumentative essay, we will try to explain those arguments.

Background

The U.S. Congress passed Obamacare on March 23, 2010. For years, the health care system in the U.S. had been plagued by numerous systemic problems. This act was a response to this situation. The main aim of the act was to ensure hospital insurance coverage for all and make health care facilities affordable. Because many people in the U.S. are unable to bear their health care costs. For example, many drug addicts cannot get out of the habit because they can not afford the cost of treatment. Whatever the pre-existing condition is, they were in need of this act. The act has 900 pages, 10 separate titles and many provisions. After a few lawsuits have been settled, the act was upheld by the Supreme Court on June 28, 2012. And on January 1, 2014, the major provisions of the act became effective.

The act has not been repealed yet because of the lack of sufficient bipartisan support. But it is expected that substantive changes will take place in the foreseeable future because the new administration is committed to doing so. Many small businesses support the view of the new government.  During his campaign, president Trump declared that the act should be repealed. To thoroughly understand the act, we must consider the pros and cons of the original act.

The Pros and Cons of the Affordable Care Act

Pros

Affordable Care Act has a number of benefits and advantages, and they must be considered seriously before making changes. Most American healthcare consumers support the act because they are enjoying some of the benefits. For the implementation of the law, the role of the Supreme Court was important. Many Americans are enjoying reasonably prices health insurance. Here are some good points about the Act:

• Many American healthcare consumers do not have insurance, and more than 50% of them can now obtain health insurance for free, or at a very low cost.
• The Affordable Care Act has introduced subsidies that make health insurance less costly. According to the 80/20 rule, a person spends 80% of his premium dollars on healthcare.
• The act gives healthcare consumers the right to appeal rapidly. No pre-existing conditions apply.
• Up to the age 26, children can stay on the health insurance of their parents. Many uninsured young people were added. Because of this, insurance companies saw increased profits.
• Annual and lifetime coverage limits have been eliminated regardless of the pre-existing Every year, $1 million was contained by health insurance companies.
• According to The Affordable Care Act, 10 essential health benefits must be covered by all health insurance plans. These benefits include treatment for chronic diseases, addiction and mental health. These services have benefited many Americans who were unable to afford hospital This is one of the strongest topics raised by the supporters of the act.
• More private coverage options are available now, and minimum essential coverage is provided by major medical coverage options.
• According to the Congressional Budget Office, by 2022, the act will lower the budget deficit by $143 billion. It will do so by raising taxes on some businesses, reducing the government’s healthcare costs, and shifting cost burdens to pharmaceutical companies and healthcare providers.
• Your policy can no longer be canceled by health insurance companies just because there is a mistake on the application. There are numerous examples of such cancellations. You will not have to deal with pre-existing conditions or surprise cancellations.
• This act allows consumers to easily compare and purchase regulated and cost-assisted health plans. They can access these options through online health insurance marketplaces.
• Americans who are uninsured and under 138% of the poverty level are now covered by Medicaid.

Cons

Although millions of Americans have benefited from the Affordable Care Act, the act has some disadvantages. Here are some of the challenges and issues that the act faces:

• The first disadvantage of the Affordable Care Act is that it has not been able to decrease the cost for everyone. Because of not complying with Obamacare, many private plans have been canceled. Some people had to shop for new health insurances and pay more.
• About five million people had employment-based health insurance, and they have lost the insurance. Many small businesses are dissatisfied because their employees can no longer buy health insurance plans on the exchanges. For some small businesses, state-run exchanges are better.
• Millions of people used to rely on private health insurance and did not have company plans. The Affordable Care Act’s 10 essential benefits were not covered by many health insurance company’s policies, and they had to cancel their plans. Many companies lost cut-rate plans, and they could not be replaced because of the high cost.
• 4 million people did not want to pay for coverage; they chose to pay the tax. They paid $54 billion, according to estimates by the Congressional Budget Office.
• Many people did not purchase insurance, but the Affordable Care Act taxed those people. And many of those people used exemptions and avoided the tax.
• Since 2013, 2.3% excise tax was paid by the manufacturers and importers of the medical 10% excise tax was paid by indoor tanning services. Those businesses showed less interest in hiring new employees because they were discouraged.
• Overall healthcare costs in fact increased for some time, because of the increased coverage. The main reason for the rise is that illnesses ignored for decades were expensive to treat.
• People who are against the healthcare policy are also scrutinizing the cost of premiums, which is increasing rapidly. The main reason for the rise is the lack of competition in the marketplace. Critics also think that the costs are not being distributed fairly because there is an imbalance between the number of ill people covered by the insurance and those in good health.

Conclusion

In the last several years, the U.S. healthcare industry has been affected by the Patient Protection and Affordable Care Act. Many state attorneys-general have challenged it. On January 1, 2014, in line with the pre-existing condition, the major provisions went into effect. But prior to that date, some changes were implemented. Analysts think that in the foreseeable future, more changes will be needed. But most probably it will remain the law of the land because the Republicans do not seem to be focusing on developing a superior and viable alternative.