Question

One of the goals of the Affordable Care Act (ACA) was to increase insurance coverage through a variety of policies. The ACA was largely successful in reducing the number of uninsured in the US. How would this affect the demand for medical care? Would healthcare consumption increase or decrease? Would we expect this to increase or decrease the price of care? Explain why, theoretically, it is ambiguous that increased insurance coverage could increase or decrease health.

Answer 1

Affordable Care Act (ACA) is the comprehensive healthcare plan intended to include millions of uninsured Americans in health-insurance coverage. It increased the number of people with health insurance. This increased demand for greater health care services. It has following advantages

• Improved patient safety
• Improve the quality of healthcare
• Coverage made more secure
• Extend affordable coverage to uninsured
• Reduction in healthcare costs
• Promoting effective care.

The Affordable Care Act prevented discrimination based on pre-existing health conditions and give improved access to health coverage to all Americans. This increased the demand for healthcare increases. With the coming of ACA Out-of-pocket spending will decrease. Total spending depends on the income level of people and reduced risk of catastrophic medical cost. An increased demand for medical services—results in higher prices.

Health insurance protects people from high medical costs, such that there will be more appropriate use of health care services and results in better health outcomes. There is a positive relation between health insurances and health care. Insurances can help prevent racial and ethical disparity in receiving treatment and screening services. Insured people get diagnosis at an early stage as compared o uninsured people. Uninsured patients will begin dialysis or treatment for cancer at a later stage of disease. Insured people avail more health care facility than uninsured people.