President Obama’s Affordable Care Act – Assignment 3
Strayer University
Dr. Neely
PAD 510
August 25, 2013
Abstract
This is Assignment 3 for the Affordable Care Act. This paper contains the corrected Assignment 1 and 2 as well as Assignment 3 which is the Position Paper. The Affordable Care Act is a frequently discussed topic today by Americans. The Affordable Care Act is supposed to allow all Americans to have affordable health care. This Act was introduced and signed under President Obama’s Administration. It has received positive and negative feedback.
“Summary of the Policy”
President Obama’s administration developed a Health Care Plan. …show more content…
This Plan originated because many Americans did not have health insurance. “More than 45 million Americans during the onset of President Obama’s Health Care Reform lacked health insurance. U.S. life expectancy, infant mortality rates, and deaths caused by a lack of access to healthcare were worse than those of other wealthy democracies” (Ventola, 2009). The Health Care Plan is known by several names. The official name is the Affordable Care Act. The name that was created by Republicans is “Obamacare” because it originated with President Obama. Assignment 1 Corrected
“Problem of the Day and the Urgency for the Policy”
President Clinton:
Health care as great concern from the beginning of President Clinton’s Administration.
The cost of Health Care for Americans was increasing rapidly. “The recession of 1990-91 had brought fears of not being insured to the ranks of the middle class. Employers were shifting the costs of insurance to their employees, and employees were afraid to switch jobs for fear of losing their health insurance. So, in the early 1990s President Clinton called on first lady Hillary Rodham Clinton to lead an effort to enact major health reform legislation” (Wilson, 2013). Health Care Reform was a failure for President Clinton’s …show more content…
Administration.
President Obama:
Ventola (2009) emphasizes the goals of the President’s Plan: The goal of President Obama’s health care plan is to retain existing providers, doctors, and plans, and build on the current health care system to provide accessible, affordable care for all Americans. More than 45 million Americans during the onset of President Obama’s Health Care Reform lacked health insurance. U.S. life expectancy, infant mortality rates, and deaths caused by a lack of access to health care were worse than those of other wealthy democracies. The cost of U.S. health care had risen from 9.1% of gross domestic product in 1980 to 17% in 2008. If these costs continued to rise at a rate above income and inflation, health care expenses were projected to be 20.3% of GDP by 2018. The increasing cost of health care was making it harder for families to meet their basic needs. These costs also made it harder for businesses to compete in the 21st century.
Something definitely needed to be done to provide health insurance to all Americans.
“Social, Economic, and Political Environments”
Social, economic, and political environments have a great impact on public policies. Many people feel as if the United States had failed by not creating a system of national health insurance. They have concluded that this has put the nation behind other industrialized states. They even feel as if some less-developed nations such as Cuba and South Africa deliver better health care than the United States (Birkland, 2011, p. 62). Health care reforms involve an increase in government activity and this is viewed by many as socialized medicine. The thought of socialism causes many Americans to reject the idea of national health insurance (Birkland, 2011, p. 171).
Social:
President Clinton: President Clinton erred in appointing his spouse to undertake the Health Care Reform Committee. “An ABC News poll found that 44% of respondents thought that there were more qualified candidates instead of Hillary Clinton to lead the health reform effort (Wilson, 2013)”. The public and lawmakers lost interest in the reform.
President Obama: “The America’s Health Insurance Plans Group conceded to greater government regulation to prevent the creation of a government-run health plan that could threaten their business. The insurance industry was the first of many groups to offer their support to the overhaul” (Wilson, 2013). This occurred in May of 2009. “Other groups that came on board were health care industry groups, drug makers (and their lobbying groups), Wal-Mart and hospitals” (Wilson, 2013). Today, nearly half, or 45%, of U.S. employers are considering changes to their total benefits/rewards programs or workforce strategies as a result of the health care reform changes. Some employers are considering cutting or reducing subsidies for dependent health care coverage (Investor’s Business, 2013).
Economic:
President Clinton: “In 1992, the US was the only major country without universal health insurance coverage. Universal insurance coverage became the main health care issue. One argument made in the 1980s to keep the government from supporting universal insurance coverage was that a period of economic growth would substantially alleviate social problems of this form” (Cutler & Gruber, 2001). There was a recession in 1990-91 that cancelled out this argument. “The number of people who were uninsured rose by 4 million from 1989 through 1992” (Cutler & Gruber, 2001). Also, the recession of 1990-91 had an economic impact on health care and the large number of uninsured.
President Obama: The financial Crisis that the country experienced in 2009 contributed to the strain of affordable public and private health insurance for the government and employers (Ventola, 2009). Many Americans found it hard to pay for health care and meet their basic needs. Health care costs were increasing. “The United States (U.S.) spends six times more per capita than other developed countries on health care administration. In 2007 statistics 59.3% of the U.S. population was covered by employer-based insurance. 27.8% of the total population was covered by Government-funded programs such as Medicare, Medicaid, and military programs and 15.3% were uninsured” (Ventola, 2009). The reform of American health is causing some headaches for commercial bankers, but it also may provide a few economic opportunities. JPMorgan Chase (JPM) and TD Bank (TD) are preparing to lose some customers as a result of the Affordable Care Act. However, they expect to experience some increased Merger & Acquisitions (M&A) advisory business. Both banks have businesses banking health care providers, such as hospitals and retirement homes. Now some of those customers are considering mergers as they prepare to comply with the health care reform law. Businesses received a temporary reprieve on July 1, 2013 when the Obama administration delayed an important provision of the law and said that employers will not be required to provide insurance for employees before 2015. Many businesses don’t understand the full impact or cost that the law will have on their operations or on their finances (Aspan, 2013) .
Political:
President Clinton: “A defining political event of the early 1990s brought health care to the national stage. The election of Senator Harris Wofford of Pennsylvania on the platform of major health care reform showed that this was an issue the public cared about and candidate Bill Clinton embraced health care reform” (Wilson, 2013). The public initially embraced it until President Clinton (Hillary Clinton) attempted to implement it. On May 3, 1993 Hillary Clinton hosts a 2 ½ hour meeting with Republican and Democratic State Senators to form a covenant pushing the concept that they were willing to confer with Republicans regarding a reform plan. However, the following month the plans of Health Reform were secretive (Wilson, 2013). President Clinton and Congress could not reach an agreement on health care reform.
President Obama: “After President Clinton’s failed efforts of health care reform in 1993-1994, Health Care Reform was not focused upon again until 2009 when President Obama took office. President Obama and Congressional Democrats overcame decades of failed effort to enact the Patient Protection and Affordable Care Act, now known as the federal health reform law, the ACA or “Obama Care”” (Wilson, 2013). The political climate and relationships changed since the Clinton Administration. President Obama had the support of the predominantly democratic Congress. President Obama allowed the lawmakers to develop the plan. President Obama had an advantage – the Democratic majority in Congress. “The America’s Health Insurance Plans Group conceded to greater government regulation to prevent the creation of a government-run health plan that could threaten their business. The insurance industry was the first of many groups to offer their support to the overhaul” (Wilson, 2013). This occurred in May of 2009. “Other groups that came on board were health care industry groups, drug makers (and their lobbying groups), Wal-Mart and hospitals” (Wilson, 2013).
Criticism of Each Policy for Its Effectiveness of the Time
President Clinton: President Clinton failed to get Congress to pass his health care reform proposal. “The reform package failed to pass partially because it was very complex and the public interests” groups aggressively opposed it. President Clinton and Congress could not reach an agreement. The majority of Congress did not feel as if this was a problem requiring congressional action or intervention (Birkland, 2011, p. 78). One criticism was that President Clinton placed his spouse (Hillary Clinton) over the health care reform committee with no experience. Hillary Clinton blamed “special interests, especially the insurance companies, for defeating the health care reform package she developed for her husband’s administration in 1993-94. Tens of millions of dollars went to lobbying, advertising and organizing against the proposal” (Katz, 2008).
President Obama: Criticism of this policy has been that it is weak and incremental (Birkland, 2011, p. 78). Another criticism is that hospital operators are uncertain of how the Affordable Care Act will impact their foodservice programs. Hospitals that serve at least 100 patients a day are more likely to say the bill will greatly impact their foodservice programs with higher food costs (Schilling, 2013). Another criticism of this policy is the cost. It will cost approximately $2 trillion over 10 years (Ventura, 2009).
Assignment 2 Corrected:
“All of the Players” As with any policy there are official, unofficial, and interests groups involved with the Affordable Health Care Act. It would be impossible to list all of the players because it impacts all Americans, businesses (small and large), corporations, insurance companies, etc. “Official actors are involved in public policy because their responsibilities are sanctioned by laws or the Constitution and they therefore have the power to make and enforce policies. Unofficial actors include those who play roles in the policy process without any explicit legal authority (or duty) to participate. Interest groups are involved in politics not because they are sanctioned by law, but because they are an effective way for many people to collectively express their desires for policy. Another important group of unofficial actors is the news media.” (Birkland, 2011, p 93) The Official Actors are President Obama and Congress. Unofficial Actors are the Internal Revenue Service (IRS), Department of Labor and Health and Human Services, individual states and the media. I searched Affordable Care Act site: .org on Google.com as recommended in Week 5’s e-Activity for this course (PAD 510). This gives the interest groups for your subject. I received a result of 669,000 interest groups for the Affordable Care Act (google.com). Interest groups would include groups connected to insurance companies, America’s Health Insurance Plan Group, small businesses, large businesses, corporations, family planning, consumer advocate groups, medical professionals, hospitals, pharmaceutical companies and the general population to name a few.
“The Role and Function of Each of the Players”
“Official Actors” The Affordable Care Act became a major platform for President Obama’s Administration. This is because the President realized that many Americans did not have health care. Our President is an Official Actor in his position as president (Executive Branch). He delegated the responsibility of health care reform to his committee. At the time, the majority of the Congressional seats were held by democrats. This gave health care reform some leverage in Congress. Congress is an Official Actor and they had to pass the Act. Even though in these present days, there is some controversy in Congress about the Affordable Care Act.
“Unofficial Actors” Unofficial Actors are the Internal Revenue Service (IRS), Department of Labor and Health and Human Services (HHS), individual states and the media. There has been some controversy on whether or not the IRS, the Department of Labor and HHS can work together to administer the Affordable Care Act. These Federal Agencies have not worked together before on a major project such as this one. The National Republican Congressional Committee (NRCC) has questioned whether the IRS is capable of handling any portion of the Affordable Care Act. This is due to the recent scandal that the IRS has faced regarding the “targeting of conservative groups applying for a tax-exempt status” as further quoted from Kessler, “Until the scandal erupted over the IRS’s targeting of conservative groups applying for a tax-exempt status, few people had paid much attention to IRS’s role in the health care law, including the NRCC. But it has an important role in implementing the law, particularly in collecting the taxes and penalties that help fund the expansion of health care to millions of Americans” (Kessler, 2013). The media has a large role in the Affordable Care Act. The media is responsible for relaying the information and details of the Affordable Care Act to the public (population). “Interest Groups” Interest groups would include groups connected to insurance companies, America’s Health Insurance Plan Group, small businesses, large businesses, corporations, family planning, consumer advocate groups, medical professionals, hospitals, pharmaceutical companies and the general population to name a few. The Interest Groups each have their own agendas and missions in mind as it pertains to the Affordable Care Act. Many are monetary and profit margin concerns. Small businesses are afraid that the Act may cause them to go out of business. Businesses with less than 50 employees are not responsible for providing health insurance, but if they do provide it then they can take a tax credit (Forbes.com, 2013). Many of the Pro-Choice America partners are in favor of the Affordable Care Act because of the “no cost birth control benefits” (prochoiceamerica.org, 2013). The Interest Groups look for what is and what is not of great benefit to them in the Act. Interest Groups were involved with the Act from the beginning. They have used lobbyist, correspondence, and all forms of communication to make their desires known to the policy makers.
“Political Influence of Each Player”
The two players that I chose to magnify are President Obama and the news media. They both play hold important positions in the Affordable Care Act. I don’t always agree with President Obama, but I love the way that he delivers what he deems as important. He brought his eloquence of speech, authority, experience, position as President, strength, political savvy and influence to the process of the Affordable Care Act (ObamaCare) from beginning to end. In some circles, this is called manipulation. In some other circles, this is called political savvy. The rating of this paper would become “X” if I included what they call this in some other circles. At the signing of the Act, President Obama even personalized it. He made this statement pertaining to his mother, “And Obama said, "I 'm signing this reform bill into law on behalf of my mother, who argued with insurance companies even as she battled cancer in her final days."”(cnn.com, 2010) He involved everyone that was available in the process. There has been recent criticism in the media pertaining to the Act. President Obama has a reply to this criticism that follows.
Warren (2013) states: President Obama fought back rising criticism of his sweeping Obamacare health care reform with a defiantly simple message Thursday: the check is in the mail. Obama went into campaign mode as he underscored benefits already flowing to an estimated 8.5 million Americans who on average have begun to receive $100 rebates from health insurers as a result of Obamacare, officially called the Affordable Care Act. Those checks result from a rule requiring insurers to spend at least 80 percent of premiums on medical care, not administrative expenses. If they don 't, rebates go to consumers. President Obama is pointing out that people are benefitting from the Affordable Care Act already. President Obama has been the driving force behind Obamacare. The media has played a major role in the Affordable Care Act. It has greatly influenced the population’s thoughts on this Act. The media can control at any time what is released and what is not released. The media has great political influence. People cannot reject or accept anything pertaining to a policy when there is no knowledge. The media has been accused of keeping negative aspects of Obamacare out of the media. Motive is the question. It may stem from influential people in power telling the media not to print or verbalize the issues.
Chapman (2013) exposed the media favoritism of Obamacare by accusing the media of not publicizing negative news about the Obamacare. The players of policy are very instrumental in the acceptance or rejection of public policy. Every duck must be aligned. If one or more are misaligned then it must be addressed and corrected immediately. Positive and covenant relationships between all of the players enable public policy to flow easier.
Assignment 3
“Favorable Position”
Some of the interest groups that were lobbying in support of the health care law were The AFL-CIO, The American Hospital Association, AARP, The American Cancer Society, The American Nurses Association, The Service Employees International Union, The HR Policy Association, The NAACP Legal Defense Fund and The National Women’s Law Center (Young, 2012). A lobbyist for The Affordable Care Act can present many favorable positions to gain support for this Act. The Affordable Care Act gives every American the ability to receive health insurance. It reaches across the masses over the rich, poor and middle class lines and boundaries. Presently, all Americans do not have health insurance. “More than 45 million Americans during the onset of President Obama’s Health Care Reform lacked health insurance. U.S. life expectancy, infant mortality rates, and deaths caused by a lack of access to healthcare were worse than those of other wealthy democracies” (Ventola, 2009). Many Americans are denied health care coverage because of pre-existing conditions. The Affordable Care Act provides the benefit that people cannot be denied coverage for pre-existing conditions. The Affordable Care Act will positively impact Americans that are below the federal poverty level. It will allow for these Americans to experience low or no premiums for health insurance. The ACA will also provide Americans to be proactive in terms of health care by having the option of wellness and preventive health measures. People without health insurance only seek emergency medical treatment and without the ACA many are denied these services. The Affordable Care Act makes life easier for our senior population. Medicare prescription drugs will become more affordable for seniors with this Act. This is due to what is called a coverage gap or donut hole (Medicare.gov, 2013). “Millions of seniors have already saved money or taken advantage of the no out of pocket costs for wellness and preventive visits” (obamacarefacts.com, 2013). “Unfavorable Position”
Some of the lobbyists that opposed the Affordable Care Act are the U.S. Chamber of Commerce, The Family Research Council, and Virginia Attorney General Ken Cuccinelli (Young, 2012). Lobbyist representing interest groups against the Affordable Care Act may present the position that Government does not need to be involved with the administration and policy making of health care. Health care reforms involve an increase in government activity and this is viewed by many as socialized medicine. The thought of socialism causes many Americans to reject the idea of national health insurance (Birkland, 2011, p 171). Does healthcare need to be monitored and controlled by the Government? Does this provide an administrative burden for a few federal agencies? The Internal Revenue Service (IRS), Department of Labor and Health and Human Services (HHS) will be responsible for administering the Affordable Care Act. These Federal Agencies have not worked together before on a major project such as this one. These agencies may not be able to effectively administer this Act. Another unfavorable position comes from groups like the Family Research Council (a conservative Christian group). They don’t like the Act’s potential coverage of abortion. Abortion coverage is decided by the states. Other Christian conservative groups do not like the women’s contraceptive provisions in the Affordable Care Act. Schools like Belmont Abbey College (Catholic College in Belmont, NC) are not in favor of the contraceptives being free under this Act. They won a lawsuit against the “contraceptive mandate”. The contraceptive mandate section of this law offers free access to contraceptives provided by the employer. This was part of a series of lawsuits surrounding the contraceptive mandate that could possibly cause this piece of the law to be presented to the Supreme Court for a decision (Bradford, 2012).
“Favorable Argument”
An anecdote argument for the Affordable Care Act is given by Mark Hodesh. Mark Hodesh is a small business owner in Harbor, Michigan. He is in favor of the Affordable Care Act because of the tax credits that he can utilize. He can even hire an additional employee because of the savings. This is a win-win situation in so many instances. The employee who was previously unemployed with no income is now earning income and paying taxes. Also, this employee is now making purchases from his salary that helps boost the economy. Hodesh will be able to offer an attractive and affordable health care plan. Hodesh has thirteen employees. He has provided healthcare to his employees since 1997. Without the Affordable Care Act, the health insurance costs were increasing at enormous rates. However, he could not transfer this increase to his customers (Hodesh, 2012). Hodesh has a small business with less than fifty employees. He is not responsible for providing health insurance however; he realizes that health care benefits are an attractive drawer for potential and present employees. He also views the tax credit as an extra incentive. An example of evidence argument that is favorable to the Affordable Care Act is the proposed reduction of the gross domestic product (GDP). “Previously, the United States had the worst access to health care than all of the other wealthy democracies. The cost of U.S. health care had risen from 9.1% of gross domestic product in 1980 to 17% in 2008. If these costs continued to rise at a rate above income and inflation, health care expenses were projected to be 20.3% of GDP by 2018 (Ventola, 2009)”. This high percentage of GDP is not only unhealthy for the economy but also it is unhealthy for a majority of Americans without access to health care. This would make many people wonder if this is really America – the home of the brave and the land of the free or is it a third world country.
“Unfavorable Argument”
Evidence argument regarding the Affordable Care Act is that a few days ago United Parcel Service (UPS) and University of Virginia announced that they will discontinue health insurance for the spouses of employees who can obtain healthcare other places.
This is due to the increased cost of this coverage by the employers. This will deny the spouses the option to choose their benefits. “The university says the changes are necessary because the law is projected to add $7.3 million to the cost of the university’s health plan in 2014 alone” (Foxnews.com, 2013). More employers will follow suit. This will probably have the greatest impact on middle class families. I have a personal anecdote argument because my spouse’s health insurance covers our entire family. We are a middle class family and his company offers better benefits at this time. My employer offers health coverage but it is more expensive and it entails higher co-payments for care. The difference in cost is approximately $275 - $300 per month. This is detrimental to a middle class family living on a budget. So, if my spouse’s employer discontinued coverage for families then this would have a huge impact on our
family. States have the option to have a State Run Insurance Exchange. However, many states are opting out of this. This is an evidence argument. Should the states have the option to choose whether or not they participate in a State Run Insurance Exchange? This means that the Federal Government will be responsible for that state and it puts an additional burden on federal tax payers. There will be consequences for states that opt out of the State Run Insurance Exchange. The goal is to have the States embrace a State Run Insurance Exchange (obamacarefacts.com).
Conclusion
There are pros and cons regarding the Affordable Care Act. Overall, the arguments in favor of it outweigh the arguments against it. Imagine the young children (babies) that can now receive adequate health care and preventative measures that at one time were impossible. This gives them greater opportunities for longer lifespans in bodies that are physically healthy. This allows us (yes “us”) as a society to help preserve generations. Some may have to make sacrifices in order for this to happen, but as a nation and a community, we sometimes have to take one for the team. This allows the team to receive the victory. The Affordable Care Act also is very beneficial to our seniors and the country as a whole.
References
Birkland, T. (2011). An Introduction to the Policy Process. M.E.Sharpe, Inc: Armonk, NY.
Bradford, B. (2012, December 20). Belmont Abbey Wins Contraceptive Ruling, In Blow to
Health Care Reform. Retrieved on August 25, 2013 from http://www.wfae.org/post/belmont-abbey-wins-contraceptive-ruling-blow-health-care-reform-0 Foxnews.com (2013, August 21). Employers dropping coverage for thousands of spouses over
ObamaCare costs. Retrieved on August 25, 2013 from http://www.foxnews.com/politics/2013/08/21/employers-dropping-coverage-for-thousands-spouses-over-obamacare-costs/ Hodesh, M. (2012, June 20). Why I Support the Affordable Care Act. Retrieved on August 24,
2013 from http://www.inc.com/eric-markowitz/mark-hodesh/affordable-care-act.html
Medicare.gov (2013). Closing the Coverage Gap – Medicare Prescription Drugs Are Becoming
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Ventola, C. (2009, June). President Obama’s Health Care Reform Policies. Retrieved on July 18,
2013 from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2697918/
Young, L. (2012, March 23). Health Care Lobbying Groups Head to the Supreme Court.
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References from Assignment 1
“Aspan, M. (2013). Health Act Will Hurt Commercial Clients, Create M&A Work: Bank Execs.
American Banker, 178(103), 7. Retrieved on 7/19/2013 from https://web-ebscohost-com.libdatab.strayer.edu/bsi/delivery?sid=3c4eaf38-5e5d-4c26-9484-59c70ab60037%40sessionmgr12&vid=6&hid-25
Birkland, T. (2011). An Introduction to the Policy Process. M.E.Sharpe, Inc: Armonk, NY.
Cutler, D. & Gruber (2001, May). Health Policy in the Clinton Era: Once Bitten Twice Shy.
Retrieved on July 20, 2013 from http://www.hks.harvard.edu/m-rcbg/Conferences/economic_policy/CUTLER-GRUBER.pdf
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Katz, A. (2008, February 25). Seeds of 1993 Health Care Plan Defeat Planted by Clinton.
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Schilling, B. (2013). Hospitals Uncertain on Impact of Obamacare. Foodservice Director, 26(7),
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Ventola, C. (2009, June). President Obama’s Health Care Reform Policies. Retrieved on July 18,
2013 from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2697918/
Whitehouse.gov (2013). William J. Clinton. Retrieved on July 18, 2013 from http://www.whitehouse.gov/about/presidents/williamjclinton Wilson (2013). Problem of the Day and the Urgency for the Policy. Retrieved on July 19, 2013 from http://ahlalerts.com/2012/04/02/why-hillarycare-failed-and-obamacare-succeeded/”
References from Assignment 2
Birkland, T. (2011). An Introduction to the Policy Process. M.E.Sharpe, Inc: Armonk, NY.
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Cnn.com (2010, March 23). Obama signs health care bill; Senate takes up House changes.
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Google.com (2013). Retrieved on August 10, 2013 from http://www.google.com/#bav=on.2,or.r_qf.&fp=23cf473b3da08d1d&q=Affordable+care+act+site:+.org H.R. 3590--111th Congress: Patient Protection and Affordable Care Act. (2009). In www.GovTrack.us. Retrieved August 10, 2013, from http://www.govtrack.us/congress/bills/111/hr3590
Kessler, G. (2013, May 29). The NRCC’s claim that the IRS will be “in charge of your health care”. Retrieved on August 10, 2013 from http://www.washingtonpost.com/blogs/fact-checker/post/the-nrccs-claim-that-the-irs-will-be-in-charge-of-your-health-care/2013/05/28/d4b281c8-c7c8-11e2-9245-773c0123c027_blog.html
Prochoiceamerica.org (2013, April 8). More Than 338,000 Pro-Choice Activists Voice Their
Support of the Affordable Care Act’s No-Cost Birth Control Benefit. Retrieved on August 10, 2013 from http://www.prochoiceamerica.org/media/press-releases/2013/pr04082013_hhs_comments.html Ventola, C. (2009, June). President Obama’s Health Care Reform Policies. Retrieved on July 18,
2013 from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2697918/
Warren, J. (2013, July 18). President Obama fights back against loudening judgment of his health care law. Retrieved on August 7, 2013 from http://www.nydailynews.com/news/politics/president-obama-steps-push-health-plan-critical-date-draws-article-1.1402085