Summary
The inception of the Affordable Care Act (ACA) has given birth to significant changes in the regulation and delivery of healthcare in the country. The ACA was created in 2010 to improve healthcare accessibility by improving healthcare insurance in the country. The subsequent re-election of former President Barack Obama helped in the implementation of the policy to cover many Americans. The ACA has continued to impact Americans in different forms. The main groups of stakeholders that have been affected in one way or the other by the law include the consumers, employers, states, and healthcare providers (Dobson et al., 2017). The impact that the ACA has had on the stakeholders can be classified as financial, benefits, and drawbacks that have affected each group in a unique way.
Consumers
The consumers include the people of the United States of America. Health insurance is received through two primary ways including the employer which accounts for about 55% and the government program which accounts for 32%. McKenna et al. (2018) state, “Since the ACA was enacted, studies have demonstrated that insurance coverage and health care access and utilization have improved across the country.” It, therefore, means that the financial impact that the ACA has had on consumer has been positive. The much that the ACA costs an individual depends on factors such as income, age, location, and family size, among others. What an individual pays in the ACA also depends on the plan they are enrolled.
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ACA’s biggest benefit is its ability to limit healthcare costs in the country. Other than ensuring that preventive care is free, it has provided insurance for millions of Americans. It provides that insurance plans should cover several fundamental health benefits including addiction, mental health, and chronic diseases, among others (Dobson et al., 2017). Insurance companies are also prevented from denying a person medical treatment based on a preexisting condition. Children can depend on the parent’s plan up to the age of 26.
As regards the downsides, the emergence of the ACA led to an overall increase in healthcare costs over a short period. Amadeo (2016) asserts that between three and five million Americans lost employment-based health insurance as a result. The author goes on by asserting that the ACA has since taxed even those who have not purchased the insurance policy.
States
The financial impact of the ACA on the states can be said to be positive. A good example of a case study in this regard is the state of Arkansas. Price and Saltzman (2013) say, “The Affordable Care Act (ACA) includes two provisions that will push billions of dollars into state economies.” It will do so by employing two strategies, including the expansion of Medicaid and through the subsidies. The state will have an annual net federal payment of about $430 million with a gross domestic product increase of $550 million (Price & Saltzman, 2013).
The states will primarily benefit from the expansion of Medicaid. In this dispensation, the marginalized people including the people with disability, low-income individuals, and the seniors, will be in a position to get covered. As such, this will reduce the amount of money that the states have to spend on healthcare. States that have expanded their Medicaid also receive billions of dollars which they use in improving their care facilities. The ACA has also spurred economic growth and most importantly, played a role in the creation of more jobs (Dobson et al., 2017). The states enjoy an improved sense of flexibility as regards how best to cover their Medicaid population.
On the downsides, states have been compelled to tax people more than usual in order to fund the ACA. Some states have also lost private insurance providers who also played a critical role in covering citizens (Dobson et al., 2017). The companies also had an important role to play in the revenue of the state. With the onset of the ACA, states have lost their autonomy in matters of health.
Employers
As previously noted, about 55% of people in the US have a health insurance plan thanks to their employer. Under the shared responsibility program, employers are required to make contributions to the ACA by covering the workers. Employers who do not comply with these demands are eligible to fines that have been stipulated by the federal government. Therefore, the financial implications of the employer can be divided into two. First, they are required to provide coverage to at least 50 full-time employees. If not, they have to pay the penalty for failing to do so (“Employer Responsibility,” 2019).
Advantages of ACA to the employers include the fact that it offers them an affordable way of covering their employees. Secondly, such a move ensures that employers avoid legal ramifications (“Employer Responsibility,” 2019). Thirdly, employers have increased control over the health needs of their workers. However, it also comes with several disadvantages.
For companies with many employees, coverage under the ACA can be a costly affair. Similarly, the fines associated with failing to comply with the coverage demands means that the employers risk suffering financially. Some employers revert to strategies in a bid to combat the requirements that come with their responsibility (Dobson et al., 2017). First, they limit the number of full-time employees they hire. Another tactic that has commonly been used by employers includes regulating the number of hours that employers work. In the end, this bears economic implications both on the employer and the employee.
References
Amadeo, K. (2016). 10 Obamacare Pros and Cons. The Balance. Retrieved from https://www.thebalance.com/obamacare-pros-and-cons-3306059
Dobson, A., DaVanzo, J. E., Haught, R., & Phap-Hoa, L. (2017). Comparing the Affordable Care Act's Financial Impact on Safety-Net Hospitals in States That Expanded Medicaid and Those That Did Not. Issue brief (Commonwealth Fund), 2017, 1-10.
Employer Responsibility Under the Affordable Care Act [Web log post]. (2019, Jul 02). Retrieved from https://www.kff.org/infographic/employer-responsibility-under-the-affordable-care-act/
McKenna, R. M., Langellier, B. A., Alcalá, H. E., Roby, D. H., Grande, D. T., & Ortega, A. N. (2018). The Affordable Care Act attenuates financial strain according to poverty level. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 55, 0046958018790164.
Price, C. C., & Saltzman, E. (2013). The economic impact of the Affordable Care Act on Arkansas. Rand Health Quarterly, 3(1).
