Affordable Care Act Case Analysis Essay

905 Words4 Pages
As part of the Affordable Care Act, the federal government will require all states to review, and approve or deny, all premium rate changes implemented by health care insurance plans. The California legislature is currently drafting its rate review guidelines. These guidelines are expected to be similar to the baseline standards established by the United States Department of Health and Human Services (DHS). However, the DHS’s rate review standards do not take into consideration health care costs. This means that health insurance plans in California will be prohibited from modifying premiums based on how much it costs to cover enrollee care. Taking that into consideration, we should analyze if California’s health insurance industry will go insolvent if rate review standards overlook the impact of health care costs. Sixty-five percent of working families receive their health insurance through employer-sponsored plans. During the last decade, their premiums have increased by 104%. On the other hand, during that same time period, health care costs…show more content…
The average person in America now consumes $6,567 in health care every year, the highest in the world. The country next closest for health care consumption is Switzerland, which spends $4,311 per person, 34% less than the United States. Japan only spends $2,529 per person, and has the highest life expectancy in the world, while the U.S. is ranked 36th. One justification for this disparity is that health care in the U.S is more expensive. Another comes from the Centers for Medicare and Medicaid Services that recently determined that one-third of all health care consumed in the U.S. is unnecessary. That means that 33% of care covered by our insurance companies may not be medically necessary. It is no coincidence that over the last decade, hip replacements have increased by a third, knee replacements are up 70%, and MRI/CT/PET scans have

More about Affordable Care Act Case Analysis Essay

Open Document