Amber Bell

Economics 1010
Macroeconomics Paper

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As a health care professional, I hear about the Affordable Health Care Act quite often.
Between copayments changing and preferred medications being dropped from formularies,
people are complaining about the new health care laws more often than not. It makes me wonder
how many people have taken time out of their busy lifestyles to educate themselves a bit. I admit
that Ive had to research the pros and cons myself, but I have yet to come across any truly
negative effects. For those of you who dont know what the Affordable Care Act is, this paper
should enlighten you a bit and perhaps even sway any negative thoughts.
The Affordable Care Act (ACA) was signed into law by President Barack Obama on
March 23, 2010. By June 28, 2012, the Supreme Court delivered a final decision to uphold the
new health care law. This act allows people, as well as small businesses, to be in control of their
own health care. Many people will argue that since it is now a law to have insurance coverage,
there is not an actual choice about their health care, but in reality they have just as much of a
choice as anyone else. An argument that I hear often refers to the cost of health care plans,
however the Affordable Care Act has reduced the premium costs for millions of working families
and small businesses by simply providing billions of dollars in tax relief. Its actually the largest
tax cut for health care in history for the middle class. Small businesses can now choose which
coverage plan will benefit them most, while also receiving a tax credit to help balance any extra
costs for covering their employees. Ive personally worked with insurance companies for eight
years and prescription costs seemed to have only gone up in price for quite awhile. Nonetheless,
in the last couple of years, prescription costs have went down overall and more medications are
being approved by insurances daily. Another aspect to consider is the fact that Medicare patients
are receiving refunds from their plans due to Medicare overcharging patients for their medical
supplies and medications. The Affordable Care Act controls fraud, waste, and abuse by imposing

Amber Bell
Economics 1010
Macroeconomics Paper

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tough, new regulations as part of the current disclosures. Patients often complain about the new
requirements, but do not realize the new act is simply trying to preserve Medicare as a
commitment to Americas seniors (www.hhs.gov). Many Medicare patients do not notice the
discontinued coverage gaps, otherwise known as donut holes or even their waived copayments.
While the Affordable Care Act prevents health care providers who have been penalized in
one state from setting up in another, it also fights against the shortage of nurses and other health
care professionals. It focuses on educational opportunities, funds scholarships, and aides in the
expansion and operation of community health centers, too (www.useconomy.com). It also offers
a new option for Americans to finance long-term services and care in the event of a disability.
This option is a self-funded and voluntary long-term care insurance choice for anyone who wants
to participate. The patient is responsible for paying premiums in order to receive a daily cash
benefit if the said patient develops any disability. Who would have thought that a goal of health
insurance being available for everyone would cause such chaos in our country? Many attempts
have been made to achieve this complicated goal, but the last time our country made progress
towards it was around the middle of the twentieth century. After World War II, private health
insurance became very popular rather quickly. By the 1960s, seventy-five percent of the United
States had private insurance. Medicare and Medicaid were soon created, with active coverage
beginning in 1965 and the inclusion of individuals with disabilities following shortly in 1972.
The expansions helped drive progress until the early 1970s, but later slowed in the mid 1970s.
The number of insured people began to rise again in the 1980s. At that point, roughly seventeen
million people were without insurance coverage at some point in their lives for about twenty
years. The Affordable Care Act addressed the problem of uninsured people in two ways.This new
option goes hand in hand with the ban of insurance companies denying insurance coverage due

Amber Bell
Economics 1010
Macroeconomics Paper

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to any preexisting conditions as well. To make it even better, the Affordable Care Act gives the
consumer the power to appeal any insurance decisions that deny doctor ordered treatments.
According to Jason Furman, the central goal of the Affordable Care Act is to ensure all
Americans have access to high quality, affordable health insurance (www.whitehouse.gov).
During the debate over the new health care laws and the years that followed, there was a
steady stream of predictions that the law would cause economic catastrophe, which still hasnt
happened (Furman, www.whitehouse.gov). One major claim has been that the law would result
in loss of many jobs and basically ruin the job market. Contrarily, businesses have created twelve
million new jobs and more than sixty months of continuous job growth since the first month of
the Affordable Care Act took effect. Between April 2014 and April 2015, there were over thirtytwo million private sector careers generated, resulting in the strongest twelve month period of
private sector growth since 1998. The overall rate of unemployment has decreased by 1.2
percent, which makes it the largest annual decline since 1984.
Many people claimed the law would result in a part-time economy. They basically
meant the majority of our population would be offered part time work only and the rate of fulltime employment would shift. More people would have job opportunities, so the employment
demand would eventually become too high, resulting in pay rate decreases and a cut in hours
available to each employee. Fortunately, these theories have yet to happen and our career
opportunities have proven the exact opposite. Full-time employment may have dropped, but
overall employment rates have steadily increased.