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In: Operations Management

Analyze at least two (2) new provisions to the Affordable Care Act. Interpret the implications of...

Analyze at least two (2) new provisions to the Affordable Care Act. Interpret the implications of these new provisions for access to care for families. Provide specific examples of such implications to support your rationale. Appraise the inherent impact of at least (2) Affordable Care Act quality initiatives on quality of care for both the consumer and the healthcare provider. Support your response with specific examples of the effects on both aforementioned groups.

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Solutions

Expert Solution

The following are among the latest provisions to the Affordable Care Act.

> A 40% excise tax on high cost ("Cadillac") insurance plans is introduced which is effective from 1st Jan'2018.The tax is on insurance premiums in excess of $27,500 (family plans) and $10,200 (individual plans), and it is increased to $30,950 (family) and $11,850 (individual) for retirees and employees in high risk professions. The dollar thresholds are indexed with inflation; employers with higher costs on account of the age or gender demographics of their employees may value their coverage using the age and gender demographics of a national risk pool.

This makes insurance plans even costlier. Employers would have to bear the cost or transfer the some of the extra cost to its employees. If cost is transferred to the employees, it is an extra financial burden for the consumer.

>States are permitted to form health care choice compacts and allows insurers to sell policies in any state participating in the compact from 1st January'2016. This increases the flexibility and insurers have more reach. Consumers also have more choices as they can buy insurances from other states too.


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