Question

In: Economics

How is the Affordable Care Act of 2010 (also known as Obamacare) an example of federalism...

How is the Affordable Care Act of 2010 (also known as Obamacare) an example of federalism at work?

Will President Trump's repeal of the individual mandate (included the recent 2017 tax law) undermine or enhance the effectiveness of federalism with regards to the implementation of Obamacare? Obamacare's individual mandate requires that most Americans obtain and maintain health insurance each month or pay a tax penalty.

Solutions

Expert Solution

How does the Affordable Care Act (aka "Obamacare") reflect the paradox of federalism?

There are some very powerful interests for example conservatives in some of the states who are having an opposing view to thee Affordable Care Act is having the influence of preventing a less powerful group of individuals who have low income and make up a major segment of the US population form being benefited from of either Medicaid or subsidized health insurance. Thu sin place of protecting and promoting the interest of people, the federalism prevents the access of some of the members of the population to the health care for others.

Will President Trump's repeal of the individual mandate (included the recent 2017 tax law) undermine or enhance the effectiveness of federalism with regards to the implementation of Obamacare?

As the number of Americans enrolled in Medicaid and on ACA’s insurance marketplaces where federal assistance is provided, will decline. There is estimated that less than 150 million fewer Americans would be covered under healthcare plans in the next coming 10 years if the mandate were repealed.

There will also be an increase in premium for people who still buy insurance through ACA resulting from the repealing. This mandate is mainly focused to motivate the young and healthy individuals to go for coverage. In the absence of it, most of these individuals will leave the market making the remaining market older, sicker, and ultimately more expensive. As lesser people will be covered and premium will be high thus repeal of the individual mandate enhance the effectiveness of federalism


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