Affordable Care Act Essay

558 WordsDec 2, 20133 Pages
Affordable Care Act Paper Despite the strong opposition and a sense of instability towards a new health care reform, Obamacare, officially known as the Affordable Care Act, was passed on October of 2010 by President Barack Obama. Many of Obamacare’s provisions are already in effect and will continue to roll out until 2022. While the average American will benefit from this new rights and protections, they will also notice the negative financial effects as well. One of the advantages of this Affordable Care Act is an introduction of new taxes and programs will help to pay for the new health care. For example, income tax is raised on those over the $200k mark and the excise tax on medical manufacturers is increased. These increases will boost the Medicare trust fund, which would expand the Medicare and its coverage to millions of low-income individuals and seniors. Moreover, the program such as the Healthcare Insurance Marketplace, which is regulated by the government, will provide and various health insurance premiums. People who are uninsured can go to the Market and buy the premiums from private insurers. Because the Market is strictly controlled and fairly regulated, many uninsured citizens will receive subsidized benefits as well as the cost assistance to their insurance premiums. One of the disadvantages is that it may produce devastating effects on the economy as a whole. Small businesses had been and will be the backbone of our economy and its contribution had been vital. However, the bill requires employers with the equivalent of over 50 full-time employees to purchase health insurance for their workers or pay a huge amount of penalty. The bill forces significant number of employers to cut working hours of their employees in order to avoid to purchasing of insurance. Thus, this may discourage workers and lead to massive layoffs in the small

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