¶ … Obamacare health care premiums depends on location by Maureen Groppe (2013) narrates the story of how insurance premiums vary by different locations in the U.S. While many forms of price discrimination are disallowed under the Affordable Care Act, discrimination by zip code is still allowed. Insurance companies therefore discriminate based on differences in local health rates, and in services rendered in that community by health care providers. This information has just recently been made public through the information exchanges set up as the result of the ACA. There are other different facts presented, gleaned from the exchanges, for example average plan rates depending on the level of competition. Lack of competition was cited as a major contributor for the higher cost of rural plans. Competition is known to have a significant impact on pricing strategy, and the exchanges are actually designed to increase competition (Griffin, 2013). There are a lot of different business principles that come into play...
The main subject of the article is the information and insurance exchanges set up under the ACA. These are intended to foster competition in the insurance industry. The article was written because for the first time, people can easily compare different insurance plans in their area. This increased buyer information gives buyers greater purchasing power. The article notes that for many people, increases in health premiums are the result of the law, which mandates plans have certain characteristics. The floor quality level of plans rules out many plans that people had before. However, the insurance exchanges will, over time, foster competition. Insurance companies will be forced to win business by offering better value in terms of prices and rates. In a perfectly competitive market, where buyers have strong information, there are no profits possible. So, over time, insurance rates will drop and features will improve, unless there is collusion (which is illegal) among industry players. For business, the creation of such a marketplace is bound to reduce margins, especially on the low-end plans where consumers are likely going to be the most price-sensitive. The article also notes that there are regions where one insurance carrier has a dominant market share, allowing it to negotiate better prices from suppliers and at the same time have better bargaining power with buyers. The insurance exchange is supposed to change that by introducing market principles to the health care market.
Affordable Care Act (ACA) On March 2010, the U.S. Congress passed the Patient Affordable Care Act (ACA), a portion of legislation intended to redesign the nation's healthcare framework and amplify health protection to a huge number of uninsured Americans. The law incorporates various provisions that endeavor to achieve this objective. It creates access to healthcare insurance coverage through shifting premiums to be based on an individual's health condition and barring persons
Critics of the ACA highlight several concerns, however, with the way that the law affects their businesses. For the 10,000 or so employers over 50 people who do not offer insurance, the cost per worker increases immediately. For companies just under 50 employees, this cost could even result in delayed expansion -- though arguably if their numbers are that tight they probably shouldn't expand anyway. That said, some surveys indicate
To make matters worse the stagnant economy means that more people are requiring assistance. In most cases, different demographics of consumers are unable to afford health care coverage. This is because of the abusive practices that are used by the insurance industry to maximize their profit margins (i.e. The denial of preexisting conditions). To make matters worse insurance premiums are increasing exponentially in order to keep up with rising
Obamacare The Cons of Obamacare As the beginning of 2014 rapidly approaches and the Affordable Care Act, more commonly known as "Obamacare," begins to take effect it is becoming more and more obvious that the system, as defined, is economically infeasible. Through a series of new taxes, as well as the individual mandate, the Obama administration has assured every American that the new system will be fully funded and the price of
"Twenty-one State Attorneys General have filed suits to protect their citizens from being forced, in violation of the Constitution, to purchase government-approved health insurance" (Obamacare: Impact on States 4). Doctors are drastically being cut out of profit through Obamacare. As a result, "Nearly two-thirds of doctors are considering abandoning any kind of government-sponsored health care insurance, stating that regulations are too high and reimbursement too low" (Obamacare Facts 1). "Obamacare expands
Affordable Care Act Instructions: Please answer Part Exam (5 Parts / preparing a written response 2 pages (double spaced/12 times Roman equivalent font size) Case Study: Patient burned a severe accident sustained significant scarring face blindness eye. Affordable Care Act (ACA) The Affordable Care Act (ACA) is designed to expand healthcare coverage to a wider range of uninsured Americans and to provide more protections for currently insured Americans. It also attempts to keep
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