Affordable Care Act - Essay

Topics: Health care, Health economics, Health insurance Pages: 4 (1500 words) Published: October 29, 2012
The Affordable Care Act
The Affordable Care Act (ACA) is considered to be one of the most radical health care moves in legislation after Medicare. The reason being that it will provide universal health coverage to everyone regardless of circumstance. An evaluation of ACA’s influence on health care will be evaluated in this paper. The Cost of Health Care

As the new healthcare law takes effect insurance premiums are expected to rise. On average for the last six years insurances premiums have gone up six percent per year. The average annual cost that employers pay to cover their employees is around $10,000 for each employee. Usually employees are responsible for 20 percent that total or $2000. At this time the new law has done nothing to reduce the cost employers pay for coverage, so the average individual should expect their cost to rise by $140 in 2013. According to the nonpartisan Congressional Budget Office, the new law will cost the government $938 billion over ten years and is estimated to reduce the federal deficit by $138 billion in that same time frame (NY Times, 2012). Seniors so far have seemed to benefit most for the new law, as each one has received a check for $250 to cover the so called “donut hole” in their coverage, which is the difference between what Medicare covers and the out of pocket expense seniors incur. According to analysis from the Urban Institute some companies will see their cost increase by ten percent. Mid-sized to large business that have between 101 and 1000 employees are expect to see this cost increase mainly due to the fact they will have to expand coverage to more employees. Companies with more than 1000 employees are expected the see their cost rise by about 4 percent. Small companies with less than 100 employees that offer insurance to their employees may benefit from the new law, as tax credits and purchasing efficiencies will help reduce cost. With the law not taking full effect until 2014, when the mandates...

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