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Affordable Care Act: Helps Or Hurts

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Affordable Care Act: Helps Or Hurts
Affordable Care Act, Helps or Hurts
Brian Steensen
HCS 571
January 14, 2014
Theresa Pichelmeyer

Affordable Care Act, Helps or Hurts
The Affordable Care Act (ACA) is the most radical health care change through legislation by the United States government as Medicare. The Affordable Care Act has given over to the United States government the right to strictly regulate the whole of the health care system. The definition of socialism by Merriam-Webster is “any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods” (Merriam-Webster An Encyclopedia Britannica Company, 2014). If this act is allowed to monopolize the health care industry
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There are also specific procedures that health insurance companies are unable to charge deductibles for as immunizations, mammograms, and colonoscopies CMS.gov, 2013).
In certain states consumers will be able to purchase the health insurance plan through their state exchange that is cheaper than one through an insurance company. This is one way that the act is helping to create a monopoly on the health care organizations it interacts.
Employer Implications
The act has multiple regulations and directives throughout that deal with directives to employers with timelines all the way up to 2024. One of the major directives aimed at small businesses of 50 employees is that they will be penalized for not supplying health insurance by 2014 (CMS.gov, 2013). This is already an economic hardships on many small businesses and their employees because these businesses have converted many of the full-time employees to part-time to get to the less than 50 employee mandate. There is also the reporting requirement of the act that the employer has to report the value of any health benefits given to
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In many cases employees who have worked for one employer now have to reenter the workforce looking for a second job.
In other areas Centers for Medicare and Medicaid Services has new regulations that mandate major changes in the way durable medical equipment company contracts are let throughout the United State (Durable Medical Equipment (DME) Center, 2013). This is led to national companies in the past few months in California releasing up to 50% of their workforce into the unemployment lines. The new policy of budget-neutral fee schedules has created problems for many the national and local contractors. There are still negotiations going on with Centers for Medicare and Medicaid Services for these continuing problems.
The nonprofit Blue Cross organizations now have a requirement for a medical loss ratio of 85% or higher to take advantage of IRS tax benefits (IRS, 2014). This is the total money spent on a procedure over the amount of money that will be incoming for Blue Cross to take advantage of any IRS tax benefits. This will impact the quality of care of the consumer and the bottom line of many Blue Cross


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