The American health care system regulatory is represented by two acts which were formed in respect of 1965 passage of Medicare and Medicaid. The first act, Patient Protection and Affordable Care Act (PPACA), also called Obamacare, came into force on March 23, 2010, after being signed by President Obama. The other act, called Health Care and Education Reconciliation Act, works together with Obamacare Act to ensure that the population in need of Medicare or Medicaid receives better services. The acts have benefits and disadvantages to the people of America. The regulatory formed the act with an aim of improving health services. The two acts have made considerable improvement in the healthcare systems and people do not worry because of treatment. The acts ensure professionalism in service delivery and availability of the required medical facilities.
Changes of Health Care Policy
The two acts had a profound effect on American health care systems. A lot of policies came into force, while some of the old were abolished. Many people felt the effect, especially those working in health care systems. The population carrying out health care private business also felt the effect of the acts. After signing of the act, the taxes credit involved in buying insurance raised. Other people, like senators who received exceptional care, did not receive it. The bills supported abolition of special care to Senator Ben Nelson. The government also lowered the penalty of people without insurance cover from $750 to $ 695. The taxation of Cadillac health care plan will take place in 2018, while Medicare Part D closure will take place in 2020 with $ 250 compensation to the seniors. The doctors treating patients will be reimbursed to full rate. The act also set Medicare taxation bill for families with an annual income of $ 250,000 and above. The act offered more to poor people. As from 2014, a company with 50 workers and above should offer coverage for the workers and, in case of failure, it will receive a penalty of $ 2,000 for every worker in the company (Vivar, 2011). Increment of Medicaid payment for doctors will take place in 2013 and 2014 to match the required Medicaid rate. The government will also pay the total Medicaid expansion cost until 2016, then 95 % in 2017, 94 % in 2018, 93 % in 2019, and 90 % the following years. Medicaid patients will receive discount in the cost of medical service.
The Obamacare act included many reforms, which were scheduled to take place beginning from 2010. Policies will be issued without application of any medical condition and community rating. The insurance cover should be provided to an individual without discrimination and corruption. Shared responsibility also called individual’s mandate required, that each person, whether working in an organization or not, should take insurance cover or else pay a penalty. The excepted people include members of various religious groups excepted by the act from taking insurance covers. The commencement of health insurance exchanges will take place in all states with families below the poverty line receiving federal subsidies (Post, 2010)
Other reforms include Medicaid taxation for individual above poverty level. The annual and lifetime insurance polices will be burned with an introduction of minimum standard establishment. The business, which will purchase insurance through exchange, will get subsidies. These reforms, provided by the two acts, have managed to benefit Medicaid and Medicare population (Jacob, 2012).
Implication of the Acts on Specific Consumer Population
The policies will lead to reduction of the number of uninsured people. The number of insured people will increase to 30 million. In 2019, after the full provision of the bill, only 25 million people will remain uninsured (Jacobs, 2012). The uninsured groups will be illegal immigrants, individuals not covered, but ready to pay a penalty, the un-enrolled citizens in the Medicaid dispute, people with low income excepted from paying the penalty, and people living in states which do not value Medicaid expansion.
The high class people or individuals with high income will be affected through payment of Medicaid expansion tax. The people with low income will also suffer as they will have to take an insurance cover. They will not manage to get enough funds for insurance cover. This will lead to poverty among the poor. Insurance companies will benefit, because they will get more customers as many people will take insurance cover to avoid penalty payment. The companies with more than 50 employees will suffer. They will be forced to pay coverage for their employees or pay a penalty of $ 2000 for each employee uncovered (Budrys, 2011). The acts will not affect a single group of the consumer but many people. People in demand of insurance covers, Medicaid services, and healthcare services will be affected either negatively or positively.
Universal health care system provides services to people with respect to social and market situations. The services delivered in the systems ensure that marketing standards are maintained. The socialized health care considers the social aspect in delivery of services. The ability of individual income and social class determine the amount of fee to pay or the kind of services to receive. The high class people receive better services than the low class people. In a market driven services are delivered in respect of market trends. The marketing of health services takes place and promotion of health facilities takes place. In treatment, individuals are requested to take health insurance covers in order to promote insurance companies products (Feldman, 2012).
System Model Represented by the Acts
The acts in general represent socialized and market driven models. The acts deal with the social aspect and take care of the market issues. The payment of insurance policies and taxes include people at a certain income level. The charges consider the ability of individual to get money. It also respects people’s social life and ensures all the people in the society do not suffer. In taxation of lower income people, psychological problems can evolve. The acts ensure that every person in the community does not develop sociological and psychological problems. In making sure that every person takes insurance cover, it ensures that people in America will live a healthy life, hence, promotion of social life. A society with healthy people develops because people work together to ensure economic stability (Jacobs, 2012). Static economy helps in reduction of sociological problems. The acts represent socialized model.
The acts also promote market for medical facilities and services together with insurance policies. The acts are set in a way in which they ensure that every person acquires insurance cover. This promotes market and increases sales of insurance policies. Through taxation, individuals facilitate for expansion of Medicaid. This is another form of marketing. The two acts are more concerned with the market and social life. Individuals without cover will pay penalties which will also be used in the market expansion. The acts have provisions which require people to participate in the Medicare and Medicaid services (Post, 2010).
Implication of the Act to Medicaid Recipients
Mostly, the acts provide provisions for Medicaid recipients. The acts are aimed at expanding the Medicaid services. The service recipient will receive high standard services due to the perceived improvement. The people with high income will pay taxes to expand the operation of Medicaid group. Many people in different states will have access to Medicaid services. The government will fund for Medicaid services until 2016 and provide a certain percentage in the following years. People receiving Medicaid services will enjoy a lot because the government will fund for the operations. Most of the people will receive the services for free or at lower rates. Insurance covers will be provided for every person, and people with low income will receive subsidies. This shows that, the Medicaid group will provide services to people disregard of the social class or ethnic groups (Vivar, 2011). Discrimination in services provision will not take palace. People will be treated with respect and honor.
Reasons of Improvement of Health Status in America by the Acts
The act will improve health care status in America because of many reasons. First, the government will fund for Medicaid expansion up to 2016 with provision of a certain percentage in the following years. This will ensure that Medicaid has enough facilities to effect the operations. The government will also make sure that the expansion takes place before 2019. Government involvement in the issues shows that the provision of the acts will not be compromised. Secondly, the acts require that every person should take health insurance covers. This will ensure that all people in America have access to Medicaid and Medicare services. This will reduce the death rate and ensure health to all people. Thirdly, the acts require that companies with over 50 employees should take coverage for their employees. Fourthly, the acts will ensure low class people get subsidies, and, finally, the acts are determined to ensure that discrimination in service provision does not take place (Post, 2010).
The two acts work to reform health services. The acts promote financial, market and social issues. They work in assurance of proper and effective healthcare services. Every person should work to promote the provision of those acts.