Name: The Unknowns
Course: Introduction to American Government
Institution: Professor Luma
Date: 24 March 2015
Prior to the onset of the Obamacare, the American healthcare system was characterized by increasing cost of healthcare. For instance in the 10 years before the implementation of the Obamacare, total expenditure increased at a constant rate. These rising rates of expenditure were unearthed to be caused by the new technology and medicines; this is according to the 2008 report by the Congressional Budget Office. Other related causes included the third party systems that many Americans relied on and shielded them from the true cost of healthcare; insurance mandates; the state –level regulation that before the Obamacare affected small group market policies; “community rating”; no purchase of insurance plans across different states among other reasons. In light of an average American household expenditure, health care took 5.1% in 1989, 5.3% in 1999 and 5.9% in 2008. According to Pipes (2010), “In 2009, the United States spent 17.3% of its gross domestic product on healthcare, the highest in the world” (p. 23). In view of the statistics on the deteriorating healthcare system in the United States, the Obamacare was enacted in 2010. As Marcovici (2013) presents it, “The Obamacare, officially known as the Patient Protection and Affordable Care Act , is a bill signed into law to reform the healthcare industry”(p. 2). The goal of the Obamacare is to provide the American people access to affordable quality health insurance and reduce the rise in healthcare spending.
Laws That Deal With Healthcare
The US law, the Obamacare, helps increase the affordability of healthcare and reduce the high standards of public and private insurance to cover the many Americans that are not insured. This it does by bringing forth subsidies, regulations, taxes and mandates to curb the increase of healthcare spending. The law has specific reforms it has done to the US healthcare system. These are as discussed below. The Obamacare has come with new protection and benefits for the American people. For example, the Obamacare forbids cancellation of insurance plans because of honest mistakes made in the application process. There is no charge made on conditions that are existent prior to the application. Such conditions may include the status of one’s illness, gender affiliation among others. Furthermore, one has a right to raise an appeal against insurance companies in regard to dissatisfactory terms placed in their insurance agreements. For instance a hike in the rate that is not justified in any manner can be appealed. In addition, individuals up to 26 years are permitted to stay on their parent’s healthcare plans. Health Insurance market places where created to enable Americans compare health care plans. This was meant to be beneficial to the middle and lower class Americans. Through the market places, they are able to obtain health insurance plans that cost less. The Obamacare has strived to expand the health industry services across America. This it has achieved through issuing a directive to large scale employers to provide coverage for their employees. On the other hand, small scale businesses that gave their employees medical cover are offered tax exemptions. Furthermore, Medicaid was expanded to serve those in the gap between those who qualified for Medicaid and those who sourced a favorable plan from the market place. Action Congress Is Taking To Better The Reform
According to Hamilton (2004), “The main work of the U.S Congress is passing the nation’s laws” (44). As Tulchnsky & Yaravikova put it (2014), “The Obamacare was passed by the U.S Congress and signed into law in the March of 2010” (568). Congress plays a huge part in the streamlining of the Obamacare. There have been about 17 changes to the Obamacare passed by Congress and signed by the President. Some of the changes are...
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Congress, 1. (2010, December 17). H.R.4853 - Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Retrieved March 13, 2015, from Congress.gov: https://www.congress.gov
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Howell, T. (2015, January 12). House votes to exempt volunteer firefighters from Obamacare mandate. Retrieved March 13, 2015, from The Washington Times: http://www.washingtontimes.com
Marcovici, M. (2013). The Obamacare Case: Where the new healthcare system will lead us. Minnesota: Books on Demand.
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