The Healthcare Reform Act in Texas

Topics: Health insurance, Health care, Healthcare reform Pages: 5 (1966 words) Published: September 24, 2012
The consequence of The Patient Protection and Affordable Healthcare Act in Texas

On June 28, 2012, The Supreme Court ruled the Federal Government does not have the constitutional right to sanction an individual to buy health insurance, but declared that the states do have the right to place a tax on citizens that do not carry insurance. This ruling is in response to President Obama’s Patient Protection and Healthcare Act of 2010. Passed on March 23, 2010, President Obama’s Reform Act mandates Texas, as well as the nation, to provide Medicaid funding to all individuals that are uninsured by 2014. As well as expanding Medicaid, it will provide exchanges, which are pools of insurance companies a previously uninsured person can pick from. The government will subsidize this expansion program by paying 100 percent of the cost of newly-eligible adults up to 133 percent of the federal poverty level. In 2017, the matching rate will be 95 percent; in 2018, it will be 94 percent; in 2019, it will be 93 percent; and in 2020 and future years, it will be 90 percent (The Henry J. Kaiser Family Foundation, 2010). The United States Supreme Court did add an addendum to its ruling; in the case of, National Federation of Independent Business Et Al. v. Sebelius, Secretary of Health and Human Services, Et Al, the states can opt out of providing Medicaid expansion without being threatened of the loss of matching Medicaid dollars. Also, if a state chooses not to provide exchanges to its constituents, it falls back on the federal government to provide a system (National Federation of Independent Business Et Al. v. Sebelius, Secretary of Health and Human Servies, Et Al., 2011). Rick Perry, Governor from the state of Texas, declared his opposition to this viewpoint in a letter to U.S. Health and Human Services Secretary Kathleen Sibelius: Through its proposed expansion of Medicaid, the PPACA would simply enlarge a broken system that is already financially unsustainable. Medicaid is a system of inflexible mandates, one-size fits-all requirements, and wasteful, bureaucratic inefficiencies. Expanding it as the PPACA provides would only exacerbate the failure of the current system, and would threaten even Texas with financial ruin. I look forward to implementing health care solutions that are right for the people of Texas. I urge you to support me in that effort. In the meantime, the PPACA's unsound encroachments will find no foothold here (Office of the Governor Rick Perry, 2012).

This research will review if The Patient Protection and Affordable Healthcare Act in Texas will be a burden to the taxpayers of Texas or an asset.

How will the Healthcare Reform Act affect the people of Texas? As of July 9th, 2012 Governor Rick Perry has optioned out of participating in the expansion of Medicare and setting up insurance exchange pools. By not participating in the Medicare expansion, the state will be losing and estimated $100 billion dollars in federal money from 2012-2022, this is money that will go to other states to benefit from; also without the expansion and estimated 2 million Texans will go uninsured (Handcock, 2012). If the state of Texas refuses to comply with setting up an insurance exchange program, the citizens will have to wait to see what program the federal government chooses. By 2014 according to the new Health Care Reform Act, an insurance company cannot deny coverage for a preexisting condition or coverage once a person gets sick. Parents are now able to insure their grown children up to the age of 26. This is a benefit to the consumer because it gives the insurance companies more money from higher premiums without the cost of treating healthier adults. The way Texan’s small business run will change. Businesses with 50 people and up are required to provide insurance to their employees, this will be implemented through the insurance exchange program; if they fail to obtain coverage they will be fined $2,000 per employee, not...

Bibliography: National Federation of Independent Business Et Al. v. Sebelius, Secretary of Health and Human Servies, Et Al., 11-393 (Supreme Court of the United States of America October Term 2011).
Amadeo, K. (2012, 07 14). Obamacare Summarry. Retrieved from
Associated Press. (2012, July 22). Texas Latinos and Working Poor at Center of Medicaid Expansion Debate. Retrieved from Fox News Latino.
Handcock, J. (2012, 07 18). Businesses Will Push Perry to Rethink Medicaid Expansion. Retrieved from Kaiser Health News.
Luhby, T. (2012, July 30). Who covers health care for Texas ' uninsured? Taxpayers. Retrieved from
Luthra, S. (2012, 7 12). State Medicaid Chief Weighs In on Health Reform. Retrieved from The Texas Tribune:
News, F. (2012, July 9). Gov. Rick Perry responds to ObamaCare ruling. (F. News, Interviewer)
Office of the Governor Rick Perry. (2012, July 9). Gov. Perry: Texas Will Not Expand Medicaid or Implement Health Benefit Exchange. Sends letter to Secretary Sebelius outlining reasons for rejecting Obamacare. Austin, Texas, USA: Offices of the Governor Rick Perry.
Texas Health and Human Services Commission. (2012). Final Count — Medicaid Enrollment by Month. Austin: Texas Health and Human Services Commission.
The Henry J. Kaiser Family Foundation. (2010, May). Financing new Medicaid under Health Reform. The Role of The Federal Government and States.
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