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Aca Case Study

In: Business and Management

Submitted By gireesh71
Words 1079
Pages 5
Introduction:
ACA (Affordable Care Act) was signed by President Obama on March 23rd 2010 to reform the US medical system. ACA changes the non-group insurance markets in the US and each individual should have health insurance which helps significantly to develop the markets of the public insurance and support the private insurance coverages which leads to rise in the revenue from the new taxes and reorganizes the Medicare health insurance plan.
According to Gurbers assumption of funding ACA is mainly based on the “Three legged Stool” approach followed to fix the Non employer insurance in the United states and which helps in the increasing the market of the health insurance in the country. The reforms included based on the three legged stool strategy to the non-group insurance market. First to prohibiting exclusions for the pre-existing conditions and charging different prices based on the health status. The second leg of the stool looks in to the individual authority to take the insurance policy. The third leg of the stool deals with the Subsidiary for the low income families to have the insurance plan.
ACA finances through following sources for the above are
1) To improve the government Medicare plans for the seniors by reducing befits of the private Medicare Advantage programs which affects the 14% financing share.
2) Decreasing of the Medicare reimbursement through decrease in adjustments provided to the hospitals every year for the Medicare reimbursement due to this 33% of financing share has the impact.
3) Increase in the Medicare tax payroll by 0.9% and to the individual with more than $200,000 per year and families with $250,000. By this increase on the tax pay roll 21% of financing share will be changed.
4) Applying the excise taxes on the pharmaceutical companies, Medical devices manufactures and insurers to benefit the extended coverage of medical

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