Negative Economic Impact of the Ppaca
PPD 513: Health Law
December 10, 2012
Final Research Paper
Negative Economic Impact of the Patient Protection and Accountable Care Act
The Patient Protection and Affordable Care Act (PPACA) also referred to as ObamaCare, federal healthcare law, Affordable Care Act, or ACA, is a United States federal Statute signed into law on March 23, 2010, by President Barack Obama. In combination with the Healthcare and Education Reconciliation Act, it represents the most significant regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 (Patient Protection and Affordable Care Act). The PPACA is intended to increase the number of health insured Americans and reduce the overall costs of healthcare. The PPACA will revamp the current health insurance system by extending health insurance coverage to nearly 32 million currently uninsured Americans; 18 million through Medicaid expansion to individuals with incomes under the 133 percent federal poverty line (FPL), and 18 million through government exchange subsidies to individuals with incomes up to 400 percent of the FPL. Citizens and legal residents in families with income between 100 and 400 percent of poverty who purchase coverage through a health insurance exchange are eligible for a tax credit to reduce the cost of coverage. To subsidize the additional 32 million individuals covered, the new law introduces 18 new taxes and penalties on individuals, employers, and businesses (Campbell). Though the PPACAs intent is to lower healthcare costs, it will increase the federal deficit, increase state deficits, hinder employment, job creation and innovation, increase health insurance costs, and delay economic growth. These negative economic issues are far-reaching and long lasting.
Increase the Federal Deficit
One of the goals for the PPACA was to reduce the federal deficit by a small amount in the first ten years and by trillions of dollars thereafter. Contrary to this key
December 10, 2012
Final Research Paper
Negative Economic Impact of the Patient Protection and Accountable Care Act
The Patient Protection and Affordable Care Act (PPACA) also referred to as ObamaCare, federal healthcare law, Affordable Care Act, or ACA, is a United States federal Statute signed into law on March 23, 2010, by President Barack Obama. In combination with the Healthcare and Education Reconciliation Act, it represents the most significant regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 (Patient Protection and Affordable Care Act). The PPACA is intended to increase the number of health insured Americans and reduce the overall costs of healthcare. The PPACA will revamp the current health insurance system by extending health insurance coverage to nearly 32 million currently uninsured Americans; 18 million through Medicaid expansion to individuals with incomes under the 133 percent federal poverty line (FPL), and 18 million through government exchange subsidies to individuals with incomes up to 400 percent of the FPL. Citizens and legal residents in families with income between 100 and 400 percent of poverty who purchase coverage through a health insurance exchange are eligible for a tax credit to reduce the cost of coverage. To subsidize the additional 32 million individuals covered, the new law introduces 18 new taxes and penalties on individuals, employers, and businesses (Campbell). Though the PPACAs intent is to lower healthcare costs, it will increase the federal deficit, increase state deficits, hinder employment, job creation and innovation, increase health insurance costs, and delay economic growth. These negative economic issues are far-reaching and long lasting.
Increase the Federal Deficit
One of the goals for the PPACA was to reduce the federal deficit by a small amount in the first ten years and by trillions of dollars thereafter. Contrary to this key
Cited: Graham, John R. "Obamacare 's Medical-Device Tax Kills Patients, Not Just Jobs."Forbes. Forbes Magazine, 06 June 2012. Web. 03 Dec. 2012. <http://www.forbes.com/sites/aroy/2012/06/06/obamacares-medical-device-tax-kills-patients-not-just-jobs/>. Murphy, Patricia. " 'Cadillac Tax ' in Health Plan Would Hit Middle Class Hard." Politics Daily. The Capitolist, n.d. Web. 30 Nov. 2012. <http://www.politicsdaily.com/2009/12/17/cadillac-tax-in-health-plan-would-hit-middle-class-hard/>. "Patient Protection and Affordable Care Act." Wikipedia. Wikimedia Foundation, 30 Nov. 2012. Web. 30 Nov. 2012. <http://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_Care_Act>. Pipes, Sally Prante, Gerald, and Robert Carroll. "Long-run Macroeconomic Impact of Increasing Tax Rates on High-income Taxpayers in 2013." Ernst & Young LLP, July 2012. Web. 5 Dec. 2012. Radnofsky, Louise. "Cliff Wranglers Weigh Medicare Age." Wall Street Journal. Wall Street Journal, 27 Nov. 2012. Web. 27 Nov. 2012. <http://online.wsj.com/article/SB1000142412788732442.html?mod=djemHL_t>. Siegel, Marc "Tax Burden." Healthcare Coalition. American Healthcare Education Coalition, 2011. Web. 7 Nov. 2012. <American Healthcare Education Coalition>. "Top US Exports." Top US Exports Willhite, James. "Companies Slow Health Cost Growth on Obamacare Concerns." The CFO Report RSS. Wall Street Journal, 14 Nov. 2012. Web. 30 Nov. 2012. <http://blogs.wsj.com/cfo/2012/11/14/companies-slow-health-cost-growth-on-obamacare-concerns/>.