Obamacare, also known as the Affordable Care Act (ACA), is a complex law that has had an important impact on the United States’ healthcare industry since its enactment in 2010. In this article, we will look at the two major aspects of why it was carried out and how Obamacare came to be.
The ACA was implemented for these reasons—a complicated set of connected factors and concerning of the US healthcare system at the time. To begin, a large number of uninsured Americans, particularly low-income people and those with pre-existing conditions, lacked health insurance, resulting in limited access to healthcare and financial hardship. Consequently, increasing healthcare costs exceeded inflation, making it harder for people and their families to afford. Lastly, to improve quality and efficiency, the lack of preventive care and limited access to preventive care were identified as contributing to higher long-term costs due to preventable illnesses going untreated.
So, how exactly did Obamacare come about? One of the most important answers to this question is the start of an increase in demand. The United States has a long history of inaccessible health care and rising health-care costs. Many people were unable to afford or access health care for many reasons, including limited coverage for pre-existing conditions, the fact that insurance companies frequently decline coverage for those with pre-existing conditions, creating additional barriers to access, and the growing number of citizens without insurance, resulting in financial hardship and limited access to healthcare.
During the campaign, Barack Obama promised to address the healthcare crisis and assembled a diverse team. Obama put together a team of experts, including politicians, doctors, and policy analysts, to draft and negotiate the complex legislation. Initially, the ACA faced strong opposition, resulting in months of negotiations and amendments. The ACA was eventually divided into two parts: the Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act of 2010. Because the United States followed a gradual implementation strategy, the law’s provisions were phased in, with major components such as health insurance marketplaces going live in 2014. Finally, consider the ACA’s long-term impact. Coverage has increased. The ACA resulted in a significant reduction in the number of uninsured Americans, increasing coverage to millions. Pre-existing conditions are no longer an excuse for an insured company to refuse health insurance coverage, and it has been a significant benefit for many Americans. Nonetheless, there is ongoing debate about the ACA’s efficacy, affordability, and potential improvements.
Lastly, it is important to note that the ACA has been controversial since it was enacted, with many differing views on its effects. However, there is no denying that the law has had a significant impact on the healthcare system in the United States.
This article is a part of the class “751309 Macro Economic 2”supervised by Asst. Prof. Napon Hongsakulvasu
Faculty of Economics, Chiang Mai University
This article was written by Apichaya Poolpoka 651615063
References
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Assistant Secretary for Public Affairs (ASPA). (2022b, April 29). New reports show record 35 million people enrolled in coverage related to the Affordable Care Act, with historic 21 million people enrolled in Medicaid expansion coverage. HHS.gov. https://www.hhs.gov/about/news/2022/04/29/new-reports-show-record-35-million-people-enrolled-in-coverage-related-to-the-affordable-careact.html#:~:text=%22With%20a%20record%2Dbreaking%20total,Human%20Services%20Secretary%20Xavier%20Becerra.
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