Introduction
The Affordable Care Act (ACA), also known as Obamacare, was adopted more than a decade ago with the intention of expanding healthcare coverage for uninsured individuals. Such a major implementation has had a significant impact on the healthcare system. The health of the general population, as well as the facilitation of more inclusive service provision, has been achieved through the implementation of this strategy. However, despite the multiple benefits associated with the policy, several downsides can be identified regarding the cost of the initiative.
The US population is concerned with the expenses generated as a result of the medical coverage promoted by the ACA. The policy, while assisting multiple vulnerable communities, is expensive to sustain in the long term. Hence, Obamacare, while being detrimental to low-income individuals, requires revisions to be sustained in the long term. It is argued that by minimizing economic costs through the management of transparency and the costs of medications, the Affordable Care Act can survive in the current system and serve as a precursor to universal care.
Overview
Even though the current healthcare system in the US is not perfect, the ACA was an excellent change. More patients received coverage, and, as a result, the health of the general population has been maximized (Ercia, 2021). Additionally, discrimination from the insurers’ perspective was minimized as pre-existing conditions have stopped being reasons why individuals would either be denied insurance or have to pay extra due to their health status. The demographic that most benefited from the ACA was the most vulnerable one, namely, low-income communities.
Researchers highlight that poverty is one of the primary factors that hinder health and well-being due to a lack of access to healthcare and lifestyle factors that correlate with a weakened economic foundation (Jutte et al., 2021). Another aspect of the policy is a reduction in health disparities among races (Michener, 2020). Hence, the fact that Obamacare addresses these demographics represents a significant improvement toward a healthier country, where all individuals can receive high-quality care.
Effectiveness
The ACA is a step in the right direction. However, there are discussions about whether it will survive in the long term if changes are not implemented. Specifically, while a new system is generally not at the forefront of universal opinion, the viewpoints on Obamacare are that it is effective yet costly (Zieff et al., 2020). On the one hand, building a healthy nation is a cost-effective approach that also addresses disparities among different demographics in terms of well-being. On the other hand, the Act is a major expense. For example, in 2017, more than 40% of healthcare spending, amounting to $1.5 trillion, was attributed to the ACA (Gao et al., 2022). Simultaneously, benefits such as the improved health of vulnerable populations highlight that the initiative was successful.
As a result, it can be stated that the policy can survive if appropriate changes are made to reduce the financial burden associated with Obamacare. Undoubtedly, the alterations and reforms that can help minimize current limitations are linked to high expenditures (Gao et al., 2022). Two potentially effective strategies can be employed. The healthcare system can adopt a more transparent billing, cost examination, and illustration system. Additionally, the high prices of medications can be addressed by allowing programs such as Medicaid to negotiate prices or implementing federal policies that limit suppliers’ opportunities to raise prices unreasonably.
A Step Towards Universal Care
Many people would like to see the US implement universal care. However, in this case, the expenses will become more substantial, and based on the current climate, the system is yet to be fully reformed (Zieff et al., 2020). In the case of universal care, the federal budget would be responsible for most medical expenses, implying that every US citizen would have access to all necessary services and treatments. Nonetheless, the financial context suggests that the change should be gradual, and the ACA is a step in the right direction.
Universal care, especially under the current system’s reliance on private insurance companies, is a complex task to tackle due to the detrimental changes required to implement it. Currently, multiple countries worldwide offer universal care, and researchers note that both challenges and opportunities arise when this system is implemented. On the one hand, medical services are inclusive and do not discriminate based on one’s socioeconomic status.
On the other hand, most countries are experiencing or are expected to go through population aging (Okamoto & Komamura, 2022). As a result, healthcare expenditure is high, while not enough people are actively engaged in the workforce. The financial aspect, as well as the polarizing political viewpoints contrasting on whether the government or people are responsible for personal healthcare coverage, are the main barriers.
Reforms
Multiple aspects of the US healthcare system can be addressed to minimize existing barriers and limitations. First and foremost, cost transparency is an essential aspect that can be helpful when employed within the ACA. According to researchers, economic transparency enables the government to identify and contain certain expenses that can be reduced or limited (Han et al., 2022). Additionally, customers are more empowered when each aspect of the costs they are responsible for is clearly illustrated.
Another essential aspect that can create a significant difference in the current healthcare system is a reduction in prices for prescription medications. Companies that manufacture drugs cite that the high prices allow them to invest in innovation (Rajkumar, 2020). However, other aspects of the current system allow for an annual price increase of 10%. Specifically, certain markets are monopolized, implying that if a drug can only be purchased from a single manufacturer, the price may be higher.
Additionally, medications sustaining individuals with life-threatening diseases are not optional, which is why consumers are ready to pay high prices. It would be helpful to adopt policies that would regulate medication prices. If drug prices could be negotiated or an approach were implemented that would limit suppliers’ use of unreasonable pricing strategies, a less substantial burden on the government would be generated.
Conclusion
The Affordable Care, despite its limitations, is a policy that has been proven to benefit the general population. More low-income communities and individuals can access services, and the country as a whole has become healthier. However, the high costs associated with the context of Obamacare facilitate the need to change certain aspects of the economic strategy linked to the Act. Namely, reducing costs through economic transparency and managing drug prices can hinder the current burden on the federal budget. Gradually, such employment can facilitate the implementation of more substantial healthcare coverage, with the ultimate goal of establishing a sustainable universal care system.
References
Ercia, A. (2021). The impact of the Affordable Care Act on patient coverage and access to care: Perspectives from FQHC administrators in Arizona, California and Texas. BMC Health Services Research, 21(1).
Gao, P., Lee, C., & Murphy, D. (2022). Good for your fiscal health? The effect of the Affordable Care Act on healthcare borrowing costs. Journal of Financial Economics, 145(2), 464–488.
Han, A., Lee, K.-H., & Park, J. (2022). The impact of price transparency and competition on hospital costs: A research on all-payer claims databases. BMC Health Services Research, 22(1).
Jutte, D. P., Badruzzaman, R. A., & Thomas-Squance, R. (2021). Neighborhood poverty and child health: Investing in communities to improve childhood opportunity and well-being. Academic Pediatrics, 21(8).
Michener, J. (2020). Race, politics, and the Affordable Care Act. Journal of Health Politics, Policy and Law, 45(4), 547–566.
Okamoto, S., & Komamura, K. (2022). Towards universal health coverage in the context of population aging: A narrative review on the implications from the long-term care system in Japan. Archives of Public Health, 80(1).
Rajkumar, V. S. (2020). The high cost of prescription drugs: Causes and solutions. Blood Cancer Journal, 10(6).
Zieff, G., Kerr, Z. Y., Moore, J. B., & Stoner, L. (2020). Universal Healthcare in the United States of America: A healthy debate. Medicina, 56(11), 580.