Assignment: Under the Affordable Care Act (\"ACA\" or \"Obamacare\") employers w

Question

Assignment:

Under the Affordable Care Act ("ACA" or "Obamacare") employers with more than 50 FTEs (full-time equivalents, e.g. 25 full-time workers, and 50 part-time workers) must provide health coverage to employees that meets the minimum essential coverage and affordability based on the income of the employees. What is the overall economic impact of the ACA both for individual businesses, individual purchasers, and the US economy as a whole? Is there a net benefit to the economy based on the removal of the problems known as "free riders" that outweighs some of the negative cost and administrative aspects of implementation, specifically for small businesses? What are the key aspects of the ACA and do you agree with the individual provisions, the Act as a whole, and which do you disagree with and why?

Please use at least 3 primary or secondary sources to support your research and the basis for your opinions.

Keep the following in mind when drafting your essay:

1) Proper APA format MUST be used.

2) Write the essay in a manner where it is clear you understand the concept. Repeating concepts from the text does not illustrate to me that you understand the material. The best essays will include an example or illustration of the concept discussed.

Explanation / Answer

Economic impact of the ACA for individual businesses, individual purchasers and the US economy as a whole

The health is wealth. It means that the real wealth is not money, shares, assets but your own body mentally as well as physically. A satisfied employee who got an insurance will work with lot more concentration and achieve better results.

Individual purchasers- Before the ACA, the only source of secure health insurance coverage was through their jobs for many people. And purchasing coverage on their own was often unaffordable or even impossible since insurance companies could simply refuse to provide coverage for people with pre-existing medical conditions. It leads to the fear that their insurer would raise their premiums without warning or even cancel their policy altogether if they go and buy on their own. This could have the effect of locking workers into jobs. Now under ACA, no one can no longer be denied a health insurance for pre-existing conditions or have your insurance canceled. This means full coverage to people who formerly didn’t qualify for coverage or had to pay more.

Individual Businesses- A healthy labour will contribte lot more. The ACA is improving health both for people who would otherwise not have had health insurance and for people who are already insured. All these efforts will if implemented proves to be a step taken in right direction.

On US Economy- If no medical insurance given, then more and more businesses will drop coverage as insurance becomes costly and unaffordable. It will then leads to more and more uninsured people. And this means that the Entitlement spending for Medicare and Medicaid will grasp the state and federal budgets immensely. Thus it will threaten economically crippling tax increases or devastating spending cuts.

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