Question

The Patient Protection and Affordable Care Act of 2010 otherwise known as Obama Care has been the center of debate among the government, policymakers, politicians, and health care providers over the past decade. For much of the last 4 years, the government has tried to repeal and replace Obama Care; however, they were unsuccessful in their attempts. There are currently modifications made to the initial Act. As a middle manager in the Health Care Industry, what type of attitude is most essential during this volatile period of change? Discuss your reasons?

Answer 1

The Patient Protection and Affordable Care Act of 2010 otherwise known as Obama Care is a double-edged sword for the Health care industry. It simultaneously provides many advantages for the health sector but at the same time it takes away many of the benefits enjoyed by the health care industry. During these times as a middle manager in the Health Care Industry,where numerous debates and repeals are still going around, even after a decade of the initial act , it's very crucial to enjoy the favors awarded by the law and raise your protest against the unfavorable aspects of ACA.

if we look at the pros

• More Americans have health insurance

More than 16 million Americans obtained health insurance coverage within the first five years of the ACA. Young adults make up a large percentage of these newly insured people.

• Health insurance is more affordable for many people

Insurance companies must now spend at least 80 percent of insurance premiums on medical care and improvements. The ACA also aims to prevent insurers from making unreasonable rate increases.

Insurance coverage isn’t free by any means, but people now have a wider range of coverage options.

• People with preexisting health conditions can no longer be denied coverage

A preexisting condition, such as cancer, made it difficult for many people to get health insurance before the ACA. Most insurance companies wouldn’t cover treatment for these conditions. They said this was because the illness or injury occurred before you were covered by their plans.

• No time limits exist on care

Before the ACA, some people with chronic health problems ran out of insurance coverage. Insurance companies set limits on the amount of money they would spend on an individual consumer.

Insurance companies can no longer maintain a preset dollar limit on the coverage they provide their customers.

• More screenings are covered

The ACA covers many screenings and preventive services. These usually have low copays or deductibles. The hope is that if you’re proactive in your healthcare, you can avoid or delay major health problems later.

Healthier consumers will lead to lower costs over time. For example, diabetes screening and early treatment may help prevent costly and debilitating treatment later.

• Prescription drugs cost less

The ACA promised to make prescription drugs more affordable. Many people, particularly senior citizens, are unable to afford all their medications. The number of prescription and generic drugs covered by the ACA is growing every year.

According to a Centers for Medicare and Medicaid Services press release from 2017, Medicare beneficiaries have saved over $26.8 billion on prescription drugs under Obamacare.

All these are pros which is beneficial for both the public and the health care as such. When the number of persons seeking treatment increases that's going to produce more revenue to the health sector.

• Children can stay on their parents’ health insurance plans up to age 26.As of 2012, more than 3 million previously uninsured young people were added This increased profit for insurance companies. They receive more premiums from these healthy individuals.

cons of ACA

• Taxes are going up as a result of the ACA

Several new taxes were passed into law to help pay for the ACA, including taxes on medical device and pharmaceutical sales. Taxes were also increased for people with high incomes. Funding also comes from savings in Medicare payments.

• Starting in 2013, medical device manufacturers and importers paid a 2.3% excise tax.(Note: This tax was suspended for 2016-2018.) Indoor tanning services paid a 10% excise tax.This might discourage those businesses from hiring new employees
• Businesses are cutting employee hours to avoid covering employees

The number of full-time jobs has gone up in recent years, but there are still reports of businesses cutting hours from employee schedules.

Businesses with 50 or more full-time employees must offer insurance or make payments to cover healthcare expenses for employees. By reducing hours, businesses can get by the 30-hour-per-week definition of a full-time employee.This creates unnecessary friction between the employee and the employer

• The cost has not decreased for everyone

Those who do not qualify for subsidies may find marketplace health insurance plans unaffordable. Customers may end up paying more for a plan that includes benefits, such as maternity care, that they may not need.

Shrinking networks

Many insurance companies made their provider networks smaller to cut costs while implementing ACA requirements. This left customers with fewer providers that are “in network.”This going to create a financial crisis in the entire economy.While the marketplace appears to be stabilizing, many counties still have only one insurance option because of insurance cancellations, decreasing competition, and increasing costs.

The ACA is subject to changes every year. The legislation can be amended, and budget decisions can affect how it’s implemented. Changes in the healthcare field, along with changes to the political makeup of future presidential administrations and Congress, make it likely that the ACA will continue to change for years to come.Hence we have to be patient but on the other hand continue to run the organizations profitably with the momentum gathered.