NEW ROUTES THROUGH CAPITALISM
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t can be difficult, if not impos- “serve as a non-partisan source of facts, in- tax on high-cost insurance.” sible, to understand what Obam- formation, and analysis for policymakers, The Commonwealth Fund, which acare actually means, let alone to predict what the effects will be on consumers, businesses, and the healthcare industry as a whole. This confusion lingers even though the bill was signed in March 2010, when the President listed three clear goals for the legislation: expanding access to people without coverage, decreasing costs for those who already have insurance, and slowing the media, the health care community, aims to “promote a high performing the increase in healthcare costs without and the public,” offers its Summary of healthcare system that achieves better adding to the federal deficit. Partisan Coverage Provisions in the Patient Pro- access, improved quality, and greater efthink-tanks shout harsh criticism or lav- tection and Affordable Care Act. The ficiency, particularly for society’s most ish praise from the sidelines on the same documents interpret the Act as doing vulnerable, including low-income peoplan, whose official name, the Patient the following: requiring individuals to ple, the uninsured, minority Americans, Protection and Affordable Care Act, have healthcare insurance as of 2014; young children, and elderly adults,” ofnicely symbolizes the length and politi- creating a Health Insurance Exchange fers its presentation of the contents of cal nature of the 2,409 page bill (approxi- with cost-sharing credits for people with- the bill chronologically in its Health mately the same length as the combined out employer-based coverage as well as a Resource Reform Center. This tool collection of Nobel Prize winning novels separate exchange for small businesses; highlights the small business tax credit, from 2003-2009). While Vice President penalizing employers, with some excep- which provides businesses with fewer Biden showed photos of people newly tions for small businesses, for employees than 25 employees whose average salaries covered due to Obamacare, some have who use tax credits for health insurance are less than $50,000 a year 35% credit argued that the Supreme Court should bought on the Exchange; regulating (rising to 50% in 2014) on premium costs declare the bill unconstitutional. Every health plans to prevent denials of cov- if the businesses pay at least 50% of the Republican nominee for President has erage or increased premiums due to rea- premium. Beginning in 2011, rebates to promised to repeal the bill, with Mitt sons such as health status; and expand- consumers will be offered by insureres Romney even stating that on day one of ing Medicaid to 133% of the poverty which spend less than 85% of premiums his presidency he would direct his “Sec- level. The only factors that healthcare on medical care in the large-group marretary of Health and Human Services to companies may employ in varying rates ket, and less than 80% for small-group put an executive order granting a waiver are age, geographic area, tobacco use, and and individual markets. from Obamacare to all 50 states.” number of family members—without beProjections for the impact on busiPerhaps the nature of healthcare ing able to impose lifetime limits on care. nesses seem to correspond with the contributes to the complexity of the leg- More specific changes include reviews political ideology of the group making islation associated with it—healthcare of increases on premiums as well as the the predictions. John Ligon of the conpolicy represents a cornerstone of how a extension of the date to which children servative Heritage Foundation argues society wishes to value productivity and may stay on their parent’s plans to age 26. that Obamacare, with its combination economic efficiency against health out- It is important to note that, in the con- of regulations, taxes, and other indirect comes. In other words, it forces society, text of the individual mandate, patients costs, “will dramatically affect compaon some level, to put a value on human who arrive in need of emergency care still nies’ per-employee costs, firm-level allolife. Yet many cringe at the notion of receive it, at the expense of the taxpayer. cation of labor, desire to take on health looking at something as fundamental to This system has led to a reduction in the coverage and motivation to grow both in human life as a business—whether due number of emergency rooms, making terms of income and employment.” He to moral opinions about the importance pre-existing ones more packed and busy. specifically cites the mandates to provide of wealth as opposed to health or more The report also cites the estimate by the health insurance as raising costs in the concrete economic perspectives such as Congressional Budget Office (CBO) that industry, a claim based on the economic the asymmetry of information between the legislation will reduce the number of belief that more demand without an inpatients and doctors. Further analyzing uninsured by 32 million in 2019 at a cost herent increase in supply will raise costs the connection between the economy of $938 billion over the next 10 years as (although with insurance some would and health can add even more layers of well as resulting in a deficit reduction of argue that a bigger pool decreases costs). issues, such as the necessity of healthy $214 billion. The savings from the plan These higher costs, according to Ligon, workers for a productive economy. will come from “a combination of sav- will result in reduced hiring and lower The Henry J. Kaiser Foundation, a ings from Medicaid and Medicare and wages. Other areas of concern include non-profit private foundation aiming to new taxes and fees, including an excise an ineffective small business tax credit,
The official name, the Patient Protection and Affordable Care Act, nicely symbolizes the length and political nature of the 2,409 page bill.
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