The Affordable Care Act
Since the Affordable Care Act became the law of the land, there has been much written concerning its ongoing economic impact on our nation's economy. There have also been many sound reports that few of the benchmarks set for it have ever been reached. Both good and bad has been reported concerning this massive legislation. Now that we have had a long history with the "ACA" we have started to see its impact first hand. The heated debate regarding what to do next with it has been ongoing and recently overshadowed by the COVID-19 pandemic. Politicians are not economists, and are not always known for making sound financial choices. Some have argued that the government neglected to listen to its own economists, the Congressional Budget Office when it passed this bill into law.
Instructions
Using the economic principles which you have learned throughout the semester, write an amendment to, or a replacement for the Affordable Care Act. The changes you create will need to accomplish the original stated goals of the Affordable Care Act.
For those of you who cannot remember what they were, here is a quick recap:
Bring down the overall cost of health care as it related to GDP
Provide health care services for the entire population
Provide a full prescription drug benefit for the elderly
Expand the entire scope of health care services
As an economist it is your choice what to do next. You may replace or repair the system at will, but will need to explain why and how. This is not an attack on the President personally, and as such please keep the political rhetoric out of your paper. Also keep faith out of it. The argument that "this will work" if we get everyone to believe in it, is both foolish and dangerous.
Sample Solution
Section 1. The following is added as a new section to the Affordable Care Act:
Sec. 1332. State Innovation Waivers.
(a) In general.—The Secretary shall establish a process for States to apply for a waiver of specified provisions of this Act, if the State demonstrates that the waiver would achieve the objectives of this Act (including improving access to affordable health insurance coverage, reducing the growth in health care costs, and improving the quality of care) in a more effective and efficient manner than the application of such provisions.
Full Answer Section
(b) Requirements.—A State may not be granted a waiver under subsection (a) unless the State meets the following requirements: (1) The State must establish a system of health insurance exchanges that meets the requirements of section 1311. (2) The State must provide subsidies to individuals and small businesses to help them afford health insurance coverage. (3) The State must ensure that all individuals have access to affordable health insurance coverage. (4) The State must take measures to reduce the growth in health care costs. (5) The State must improve the quality of care. This amendment would allow States to experiment with different ways to achieve the goals of the Affordable Care Act. This could include expanding Medicaid, creating public health insurance options, or regulating the prices of prescription drugs. By allowing States to innovate, we can find better ways to improve access to affordable health care coverage and reduce the growth in health care costs. Here are some of the specific changes that I would make to the Affordable Care Act:- Expand Medicaid. I would expand Medicaid to cover all low-income adults. This would provide health insurance coverage to millions of Americans who are currently uninsured.
- Create a public option. I would create a public health insurance option that would compete with private health insurance plans. This would give consumers more choices and help to lower costs.
- Regulate the prices of prescription drugs. I would regulate the prices of prescription drugs to make them more affordable for consumers. This would help to reduce the out-of-pocket costs of prescription drugs.
- Reform the health insurance market. I would reform the health insurance market to make it more competitive and efficient. This would help to lower costs and improve quality.