Question

The Affordable Health Care Act of 2010 provides an interesting dichotomy concerning the role of the Federal Government in our personal lives relative to social health insurance, versus its' interest in assuring fair and equitable markets in the Healthcare Industry. Discuss the merits of the role of the Federal Government in this context.

Answer 1

Introduction to Patient Protection & Affordable Health Care Act 2010

Its an act passed by President Barak Obama in 2010 to mandates the citizen of USA that everyone must have insurance (health) or should pay a tax. This act supported middle class families of USA. It changed the scenario of health insurance in America. It helped low income people by providing expanded health care in terms of dollars. However, purchasing insurance was not totally free of cost but it made employers to pay 60% of the insurance premiums of their employees. In short this act had something for everyone. It enacted in March 2010, is also known as Obamacare.

Role(Merits) of Federal Government

1. Increased Tax: However it was a con for common citizens but this act increased the income of Federal Government by increasing the tax and ultimately increasing government's income. This point is relevant for those citizens who didn't buy the policy.

2. Increased Income of Common People: This act benefited those citizens who bought it. It gave them tax benefits and the result was their increased income.

3. Increased Demand in the Economy: This happened when people bought the insurance and enjoyed tax benefits. With tax benefits, they had extra income in their pockets which boosted demands of goods which results in more production and growth of the economy.

4. Cutting Costs of Health Care Products: This act cut the costs of healthcare products of private sector companies too. It reduced the growth of costs of healthcare products.

5. Increase in Jobs/Employment: According to a study, this act reduced the amount of insurance premiums paid by the employers which also cut the cost of adding an additional employee. So, they could hire more employees in their company. Which ultimately resulted increase in jobs in the country.

Conclusion

This act has gone through a very critical phase of analysis by the people of the country. According to a report, after 3 years of this act, more than 50% Americans rejected/opposed this act because it had a primary condition that "Either pay Tax or buy Insurance". The result was, higher Tax rates. But its merits were greater than its demerits because it covered 10 medical health conditions (even Pre Health conditions too) and cut down the healthcare insurance's costs. This act helped those who bought the policy(increased earnings) as well as indirectly also who did not(increased jobs) which is the biggest advantage for the Federal Government.