Freshman Economics104 paper

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Source of images:

http://www.cbsnews.com/8301-503544_162-20000846-503544.html

http://www.cbsnews.com/8301-503544_162-20000691-503544.html

The Health Care Reform Bill (Passed by Congress and signed by the President in March 2010)

If you haven’t done so, read more about the ongoing debate over health care

reform. Then see if you can apply the economic principles you have learned

(e.g., scarcity, choice, opportunity cost, the PPF, etc.) to improve your

understanding of the many facets of this debate.

There are many sources of information, including:

1. Jason Saving, “Federal Health Care Law Promises Coverage for All, But at a Price,”

Federal Reserve Bank of Dallas Economic Letter, March 2011:

http://www.dallasfed.org/assets/documents/research/eclett/2011/el1102.pdf

2. U.S. Department of Health and Human Services, “The Affordable Care Act, Section by

Section”: http://www.hhs.gov/healthcare/rights/law/index.html

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Percentage of Americans Without Health Insurance

• According to the U.S. Census Bureau, in 2012:

• 15.4% of people were uninsured (down from 15.7% in 2011).

• The number of uninsured people was 48 million, not statistically

different from the estimate of 48.6 million in 2011.

• The proportion of people with employment-based coverage was

54.9%.

• 24.9% of people in households with annual incomes of less than

$25,000 had no health insurance coverage.

• 7.9% of people in households with incomes of $75,000 or more

had no health insurance coverage.

Source:

“Percentage of Americans Lacking Health Coverage Falls Again,” New York

Times, 9/17/2013.

http://www.nytimes.com/2013/09/18/us/percentage-of-americans-lacking-health-

coverage-falls-again.html?_r=0

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• 2010: • Patient’s Bill of Rights goes into effect.

• Cost-free preventive services begin for many Americans.

• 2011: • People with Medicare can get key preventive services for free, and also receive a 50%

discount on brand-name drugs in the Medicare “donut hole.”

• 2012: • Accountable Care Organizations and other programs help doctors and health care

providers work together to deliver better care.

• 2013: • Open enrollment in the Health Insurance Marketplace begins on October 1st.

• 2014: • All Americans will have access to affordable health insurance options.

• The Marketplace will allow individuals and small businesses to compare health plans on a level playing field.

• Middle and low-income families will get tax credits that cover a significant portion of the cost of coverage.

• The Medicaid program will be expanded to cover more low-income Americans.

• All together, these reforms mean that millions of people who were previously uninsured will gain coverage.

Overview of the Affordable Care Act Source: http://www.hhs.gov/healthcare/facts/timeline/timeline-text.html#2011

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Overview of the Affordable Care Act Source: http://www.hhs.gov/healthcare/rights/index.html

• Coverage

• Ends Pre-Existing Condition Exclusions for Children:

• Health plans cannot limit or deny benefits to children under 19

due to a pre-existing condition.

• Keeps Young Adults Covered:

• Adults under 26 may be eligible to be covered under their

parent’s health plan.

• Ends Arbitrary Withdrawals of Insurance Coverage:

• Insurers can no longer cancel coverage because of an honest

mistake.

• Guarantees the Right to Appeal:

• Insured individuals will have the right to ask that their plan

reconsider its denial of payment.

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• Costs

• Ends Lifetime Limits on Coverage:

• Lifetime limits on most benefits are banned for all new health

insurance plans.

• Reviews Premium Increases:

• Insurance companies must now publicly justify any

unreasonable rate hikes.

• Helps Insured Individuals Get the Most from Their Premium

Dollars:

• Premium dollars must be spent primarily on health care – not

administrative costs.

Overview of the Affordable Care Act Source: http://www.hhs.gov/healthcare/rights/index.html

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• Care

• Covers Preventive Care at No Cost to the Insured:

• Insured individuals may be eligible for recommended

preventive health services. No copayment.

• Protects the Insured’s Choice of Doctors:

• Choose the primary care doctor you want from your plan’s

network.

• Removes Insurance Company Barriers to Emergency

Services:

• Insured individuals can seek emergency care at a hospital

outside of their health plan’s network.

Overview of the Affordable Care Act Source: http://www.hhs.gov/healthcare/rights/index.html