Making healthcare more accessible and affordable to as many Americans as possible is a goal that successive US governments have strived to accomplish. Different governments have achieved this goal with varying levels of success. As part of their efforts to enhance coverage and the quality of care, the governments have adopted various policies. While the policies affect different aspects of care, their impacts on consumer costs have been most profound. The effects on costs have been both positive and negative. An evaluation of these effects is critical as it allows the federal government to implement policies with positive influences on the costs that consumers shoulder. The Affordable Care Act (ACA) serves as an illustration that federal policies can have both positive and negative effects on consumer costs.
The ACA commonly referred to as Obamacare is among the policies that have had significant effects on consumer spending on healthcare. Among the positive effects of this policy is placing limits on the premiums that insurance providers can impose. Among the key provisions of the ACA is that the providers cannot charge individuals higher premiums based on their health history or condition (Aron-Dine, 2017). Basically, this act lowers consumer costs. Expanding the groups covered by insurance is another federal government policy that has had positive effects on consumer costs. Under the ACA, children could be covered under parents’ insurance until they reached the age of 26 (Aron-Dine, 2017). This means that children are shielded against the need to pay for their own insurance of settle medical bills out-of-pocket.
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When considering the question of consumer costs, it is necessary to go beyond merely measuring the direct costs that Americans incur when procuring medical services. It is also critical to examine such indirect costs as decreases in medical debt. It has been observed that since the implementation of the ACA, millions of poor Americans have witnessed significant declines in their medical debt (Sojourner & Golberstein, 2017). This observation suggests that federal policies can be used to relieve Americans of the burden of debt. Another impact of federal government policy on cost is that it can maximize the amount of value that Americans enjoy from the monies they pay for medical services. When it came into force, the ACA challenged providers to focus on quality (Larrat, Marcoux, & Vogenberg, 2012). As they comply, these providers offer Americans value for their money. Another observation regarding the ACA that has been made is that since its implementation, the amount of out-of-pocket payments that Americans make has reduced significantly (Mangan, 2018)
Whereas it is true that federal policies such as the ACA have had impacts that are mostly positive, it is worth recognizing that they can also have disastrous effects. An increase in the premium amounts that Americans pay for medical insurance is among the adverse effects of the ACA. In such states as Florida, insurance providers are charging as much as 8.8% higher as a result of the ACA (Ochoa, 2018). This should worry the American people as they will need to contend with higher deductibles. However, the people should find comfort in the fact that the higher premiums are necessary to improve the quality of care and to extend coverage to millions who would otherwise remain uninsured.
In conclusion, the federal government continues to play a central role in the delivery of healthcare services. Formulating policies that define insurance coverage is the main way through which the government influences healthcare in the country. As the outcomes of the ACA have made clear, the effects of federal policies can be both positive and negative. Since its implementation, the ACA has expanded coverage while promoting efficiency. However, this policy has led to increases in insurance premiums. The federal government should develop policies whose positive impacts outweigh the adverse effects.
References
Aron-Dine, A. (2017). Health care: issues impacting costs and coverage . Center on Budget and Policy Priorities. Retrieved February 3, 2019 from https://www.cbpp.org/health/health-care-issues-impacting-cost-and-coverage
Larrat, E. P., Marcoux, R. M., & Vogenberg, F. R. (2012). Impact of federal and state legal trends on health care services. Pharmacy & Therapeutics, 37 (4), 218-220.
Mangan, D. (2018). Out-of-pocket health spending dropped by nearly 12 percent — but premiums rose after Obamacare rolled out. CNBC. Retrieved February 3, 2019 from https://www.cnbc.com/2018/01/22/out-of-pocket-health-spending-dropped-after-obamacare-rolled-out.html
Ochoa, J. (2018). Obamacare rates expected to increase by 8.8 percent. WLRN. Retrieved February 3, 2019 from http://www.wlrn.org/post/obamacare-rates-expected-increase-88-percent
Sojourner, A., & Golberstein, E. (2017). Medicaid expansion reduced unpaid medical debt and increased financial satisfaction. HealthAffairs. DOI: 10.1377/hblog20170724.061160
