Christopher Chestnut
Instructor Mike Dale
Macroeconomics 210
1/10/2014
Obamacare The Patient Protection and Affordable Act, better as “Obamacare,” is a federal law providing for a fundamental reform of the U.S. health and health insurance system, signed by President Barack Obama in 2010. The effectiveness of Obamacare has been a central topic of debate amongst politicians from both sides, as well as economics. We shall take a deeper look into the positives and negatives of the Patient Protection and Affordable Act and how it will affect our economy. At first glance, is seems the average American will benefit greatly from Obamacare. With the expansion of Medicaid, tougher restrictions on insurance company denials, and the lengthening of age a child can remain on a parents insurance; it is estimated over ten million Americans, who were previously uninsured, will now have access to not only quality insurance but one that is affordable. Not only that, but up to 50% of these uninsured Americans, will be eligible to receive low cost or even sometimes even free health insurance through their state. Obamacare is not only benefiting the individual citizens but also some employers, as small business are now eligible for tax credits up to half of their employees premium costs. These tax credits will allow these small businesses to operate at a lower cost, increasing aggregate supply, and in turn allow them to create more jobs. Furthermore, insurance companies will no longer be able to drop you from your coverage or deny your cover claim because you are sick. Gender discrimination, meaning higher cost for women, will also no longer be allowed. It is hard to argue that the Patient Protection and Affordable Act is not beneficial to the American citizens, isn’t it? While all of these new benefits are exciting and no doubt exhilarating, there is one simple question we must ask, how do we pay for these 10 million newly insured insurance carriers at an affordable and sometimes free rate? Who pays for this increase in quality and lowering of claim denials? The answer in most cases is quite simple, higher taxes, mainly on those with higher earnings. The tax issues that will hit close to home with the average worker most are the individual mandate and the employer mandate. The individual mandate requires that all employees have health insurance or pay a fee. Not only are they forcing citizens to purchase health insurance, but since they are requiring …show more content…
This law focuses on the number of people that have health insurance coverage and not on how much this will cost the individual, the employer, or the country as a whole in the long run. With the economy the way it is, we should be focusing on tax breaks for our large companies and not more tax restrictions. Simple economics shows less taxes, equals more money for employers, equals more jobs for citizens. With all the other tax restrictions we have already in place, this law seems to just be piling on. Furthermore, I do not believe we should force any American to have health insurance. Burdening an employee with another expense that they may not want is not the way to do things. In closing, The Patient Protection and Affordable Care Act, better known as Obamacare, would be a great idea, in a booming economy. Unfortunately, America is a long way from that at this
Instructor Mike Dale
Macroeconomics 210
1/10/2014
Obamacare The Patient Protection and Affordable Act, better as “Obamacare,” is a federal law providing for a fundamental reform of the U.S. health and health insurance system, signed by President Barack Obama in 2010. The effectiveness of Obamacare has been a central topic of debate amongst politicians from both sides, as well as economics. We shall take a deeper look into the positives and negatives of the Patient Protection and Affordable Act and how it will affect our economy. At first glance, is seems the average American will benefit greatly from Obamacare. With the expansion of Medicaid, tougher restrictions on insurance company denials, and the lengthening of age a child can remain on a parents insurance; it is estimated over ten million Americans, who were previously uninsured, will now have access to not only quality insurance but one that is affordable. Not only that, but up to 50% of these uninsured Americans, will be eligible to receive low cost or even sometimes even free health insurance through their state. Obamacare is not only benefiting the individual citizens but also some employers, as small business are now eligible for tax credits up to half of their employees premium costs. These tax credits will allow these small businesses to operate at a lower cost, increasing aggregate supply, and in turn allow them to create more jobs. Furthermore, insurance companies will no longer be able to drop you from your coverage or deny your cover claim because you are sick. Gender discrimination, meaning higher cost for women, will also no longer be allowed. It is hard to argue that the Patient Protection and Affordable Act is not beneficial to the American citizens, isn’t it? While all of these new benefits are exciting and no doubt exhilarating, there is one simple question we must ask, how do we pay for these 10 million newly insured insurance carriers at an affordable and sometimes free rate? Who pays for this increase in quality and lowering of claim denials? The answer in most cases is quite simple, higher taxes, mainly on those with higher earnings. The tax issues that will hit close to home with the average worker most are the individual mandate and the employer mandate. The individual mandate requires that all employees have health insurance or pay a fee. Not only are they forcing citizens to purchase health insurance, but since they are requiring …show more content…
This law focuses on the number of people that have health insurance coverage and not on how much this will cost the individual, the employer, or the country as a whole in the long run. With the economy the way it is, we should be focusing on tax breaks for our large companies and not more tax restrictions. Simple economics shows less taxes, equals more money for employers, equals more jobs for citizens. With all the other tax restrictions we have already in place, this law seems to just be piling on. Furthermore, I do not believe we should force any American to have health insurance. Burdening an employee with another expense that they may not want is not the way to do things. In closing, The Patient Protection and Affordable Care Act, better known as Obamacare, would be a great idea, in a booming economy. Unfortunately, America is a long way from that at this