The Debate over Healthcare in America
In March 2010, the US Congress passed HR 3590, the Patient Protection and Affordable Care Act (PPACA) commonly known as Obamacare. President Barack Obama signed the bill into law. The new law mandates the following:
1) All Americans must obtain health insurance or face a tax penalty.
2) Companies with more than 50 employees must provide health insurance or face a tax penalty.
3) Insurance companies cannot deny citizens health coverage for a pre-existing condition.
4) States and Federal govt will allow insurance companies to sell coverage through a health exchange
5) Subsidies will be provided to citizens who cannot afford coverage through the exchanges
Argument for Obamacare by Paul Krugman, PhD, Nobel Prize-winning economist:
Proponents of the health care legislation have called it a "historic victory" and "landmark legislation" that reforms the US health care system by making health care more affordable, and protecting consumers from unfair insurance practices. "Obamacare means a huge improvement in the quality of life for tens of millions of Americans – not just better care, but greater financial security. And even those who were already insured have gained both security and freedom, because they now have a guarantee of coverage if they lose or change jobs.
What about the costs? Here, too, the news is better than anyone expected. In 2014, premiums on the insurance policies offered through the Obamacare exchanges were well below those originally projected by the Congressional Budget Office. More broadly, overall health spending has slowed substantially, with the cost-control features of the ACA probably deserving some of the credit. In other words, health reform is looking like a major policy success story. It's a program that is coming in ahead of schedule – and below budget – costing less, and doing more to reduce overall health costs than even its supporters predicted. And this big improvement in American society is almost surely here to stay, and has made America better.
Argument against Obamacare by Jim Sensenbrenner, Republican member of House of Representatives
Opponents have called it a "socialist" and "unconstitutional" government takeover of the health care system that will increase the cost of health care, decrease the quality, and entrench a new entitlement. They say the law will increase the nation's deficit $340-$700 billion over the next decade. "Under the Affordable Care Act our health care system is nothing short of a disaster and coverage is far from 'affordable. Thousands of Americans are being told they must switch doctors and providers to comply with coverage regulations, while hundreds of employers are worried about restricting hiring practices and lowering employees’ hours to comply employer mandate.
By reducing competition and limiting patient choice, insurance and health care providers have little incentive to lower costs or increase the quality of care under Obamacare. The American people end up paying more and getting less." Obamacare is a major jobs killer, especially for those struggling to climb the economic ladder. Workers are seeing their hours cut, and small businesses are unable to hire new employees
Questions:
1. What requirements are there for citizens, businesses and insurance companies?
2. Where will insurance be sold and what if you can afford it?
3. Give two examples of how proponents have said the law is working?
4. Give two examples of how opponents say the law is not working?
5. Explain if you agree or disagree with the new law.