Question

1.         What negative externalities arise when an individual does not have health insurance?

2.         Discuss the advantages and disadvantages of the Affordable Care Act (ACA).

Answer 1

1. The main externality of health care is the care given to others in many schemes. You benefit from being safe for others because it reduces the probability that you will catch their infection (assuming it is contagious). You benefit from others accessing health care having a positive externality. Others who choose to purchase health care also affect your health care costs. The well pay more than they receive in care to the insurance company, while the opposite is true for the poor. Insurance operates primarily by taking healthy people's money to pay for the procedures sick people require

Infectious disease: The fact that disease is infectious is one of the biggest reasons why health care is so critical. Untreated disease, due to increased exposure, will result in increased vulnerability of the population to this disease.
Environmental degradation: health care produces a lot of chemical waste, requires a lot of emissions (ambulances, etc.) and changes the bacteria's natural ecological environment.
Antibiotic resistance: The slowly growing resistance to antibiotics in bacteria is an important byproduct of the current approaches to medical dilemmas. Bacteria are significantly altering to thwart our approaches because of the way the healthcare industry has worked.

2. The implementation of subsidies makes it less costly for those who qualify to buy health insurance. Therefore, enforcing the 80/20 principle ensures that 80% of your premium dollars are spent on health care rather than administrative costs. Free preventive care All qualified health insurance plans, including free preventive and wellness visits, must provide 10 essential health benefits. There's no copay. There is no limit. No coinsurance. No cancelations of disappointment or pre-existing denials Insurance companies are unable to cancel the plan due to an application error. Insurance companies are also unable to deny insurance for a pre-existing condition (unless the policy is grandfathered). For many states that have opted to extend their coverage, Medicaid now covers disabled People below the poverty level of 138 million. You will continue to have your kids paid under your health plan until they are 26 years old.

Costs have not plummeted for everyone Those who are not eligible for subsidies can find health insurance plans purchased on the marketplace inexpensive. Customers may end up paying more for a plan that includes benefits that they may not need, such as maternity care. Loss of company-sponsored health plans Many employers can find it more cost-effective to pay the penalty and encourage their employees to buy their own marketplace insurance instead of offering employer-sponsored coverage. Tax penalties If you were not insured, you might face major tax penalties before 2019. There is no longer the national penalty, but some states are now issuing their own health insurance mandates.