Week 2 – The Health Reform Legislation H.R. 3590
James R. Freehahn
HSM 315 The American Healthcare System
Instructor Dr. Cheryl Chance, PhD.
March 6, 2015
The Patient Protection and Affordability Act H.R. 3590
There has been much debate regarding the impact of the Patient Protection and Affordability Act on health care since passed in to law. In this paper, I will describe the key components, and the advantages and disadvantages to the legislation. The legislation constitutes the largest change to America’s healthcare system since the creation of Medicare and Medicaid. The Summary of Key Components
The legislation expanded health care insurance coverage to an estimated 32 million people, builds on the employer-based insurance system, set in motion future payment and delivery system reforms, and increases the focus on wellness and prevention. Three important areas of the new law will affect healthcare organizations, providers, and employers, which include healthcare delivery system, quality and safety, and regulatory oversight and program integrity. The Patient Protection and Affordable Care Act (PPACA) put the consumer back in control of their health care. Under the law, the new Patient Bill of Rights gives the American people the stability and flexibility to make informed choices about their health care. The key features of the PPACA result in Coverage, Cost and Care. The PPACA ends pre-existing conditions exclusions, keeps young adults covered, and ends arbitrary withdrawal of health insurance coverage. The PPACA ends lifetime limits on coverage, reviews premium rate increases, and helps control administrative cost associated with premiums. The PPACA also covers preventative care at no cost to the individual, protects the consumer’s choice of doctors, and removes insurance company barriers to emergency care services.
The Advantages and Disadvantages of H.R. 3590
Medical care and its benefits are distributed on the basis of people’s willingness and ability to pay (Santerre & Neun, 1996, p. 7). In contrast, social justice emphasizes the well-being of the community over that of the individual; thus, the inability to obtain medical services because of a lack of financial resources would be considered unjust. The number of Americans who do not have insurance has grown fast over the years. The high price of insurance premiums is one major reason for the problem. The economic recession of 2008 that put many Americans out of work was a secondary factor, losing employer-based insurance benefits. The legislation promises healthcare coverage to an estimated 18 percent of the United States population, who do not have present healthcare coverage. Another advantage is that insurance companies are not able to deny healthcare coverage for a person who has pre-existing health conditions and who has lost a job. “Among the population targeted by the health insurance Marketplaces (defined as adults with family incomes above 138 percent of the federal poverty level either with non-group coverage or uninsured), 39.9 percent were confident of their understanding of all nine terms. Notable differentials in health insurance literacy were found among the Marketplace target population by age, which likely reflects younger adults' lack of experience with insurance” (Long, S. 2014). Although there are advantages to the healthcare legislation, there are also some disadvantages. The main issue is the high costs associated to the legislation. The government will need to raise funds to provide modern facilities to people. Some experts believe this will lead to increased taxes on businesses and high-income families. Those who filed taxes in 2014 and did not have healthcare insurance through an employer-based program, or a healthcare exchange were faced with a tax-penalty. Some agreed the penalty cost less than the monthly premiums they would have paid. Still, this has not solved the...
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