The Affordable Care Act: Health Care Reform, Research Paper Example

The Affordable Care Act has brought about health care reform in a manner that has been beneficial to many Americans by increasing accessibility to health care. However, there have been many macroeconomic implications related to this legislation. Overall, it appears that this legislation has positively influenced the American economy because it contributes to a greater influx of patients to local hospitals and medical offices, allowing for the creation of more business. In addition, because the health of these individuals are expected to improve, they will be able to contribute more significantly to the workforce, which will in turn create more jobs and other opportunities in the country. Currently, the long-term economic impact of the Affordable Care Act is not known because it has been implemented over a short period of time. However, this policy is expected to contribute to a small rise in economic growth.

Overall, it is evident that health care reform affects businesses, whether these organizations are members of the health care industry or otherwise. In particular, pharmaceutical and medical device companies are expected to benefit from these reform practices because accessible care will allow them to sell a large quantity of their products. Since a larger portion of the population is now able to purchase these products, it is plausible that research and development will shift in a manner that helps make the acquisition of these products more affordable. This industry yields a high level of interaction between insurance companies, pharmaceutical and biotechnology companies, and physicians, so it is reasonable to hypothesize that these three groups will collaborate to determine how to make health care continue to be accessible and affordable to ensure that the needs of all stakeholders are met.

Four basic models of health care exist around the world; the Beveridge Model, the Bismarck Model, the National Health Insurance Model, and the Out of Pocket Model. Under the Beveridge Model, health care is funded through the tax payment of citizens. Britain currently has this system in place. A majority of physicians are considered government employees, although some doctors have privately owned facilities. As a consequence, there is a high level of accessibility to case, although patients have the right to choose whether they will visit a public or a private facility based on their financial abilities. The Bismarck model most closely resembles the insurance policy that has been established in the United States. In this system, the insurers put funds aside for their clients and allow them to use these funds if they need to visit a doctor. It is expected that the health insurance plans will cover everybody. However, the United States has not been fully adopted in America because insurance companies are not supposed to profit under this model. This ensures that all individuals have health care and are paying an affordable price for insurance coverage.

The National Health Insurance Model appears to be a mixture of the models put forth by Beveridge and Bismarck. Citizens rely on private health insurers, but everyone pays into the program. A national-scale health insurance program is cost effective because the insurance company is able to use all of its funds for providing care because marketing and other auxiliary functions are not needed in this system. This system is currently implemented in countries like Canada, and is cost-effective because people need to be referred by a doctor for treatment and specialized care, preventing unwarranted care. The out of pocket system requires that each individual pay for care without the help of the government or health insurance agencies, and is mainly prevalent in developing nations. As a consequence, poorer individuals are generally unable to access care.

Overall, it appears that the United States is currently following the Bismarck Model, although many politicians would prefer it to follow the National Health Insurance Model. Under its current system however, citizens have been more able to access care despite their socioeconomic status. As a result, while the Affordable Care Act does not fully promote access to affordable care due to the persisting price of insurance, copayments, and medications, the disparity between who can and who cannot receive health care has become minimized as a result.

Overall, it appears that health care spending contributes to national economic growth and stability. An analysis of the Affordable Care Act in terms of spending for the Medicare and Medicaid programs indicated that the implementation of this legislation has reduced the need for the government to spend more than $100 billion for the health care budget. As a consequence, health care is likely to contribute to economic growth because the government will be able to invest the saved money into other aspects of the economy. While small changes are being seen right now, it is likely that the results will become more dramatically apparent over the next several years. Thus, even though economic growth is slow, health care reform is allowing the country to budget our money more efficiently, which is beneficial overall.

According to the findings of many economic research articles, health care spending in the United States is twice as much per capita compared to spending in England or Germany. Even though the United States and these two nations are leaders in the world economy, the United States has the highest prices because medicine and medical procedures are more expensive. Secondary reasons are the lack of accessibility to technology, also due to price, and the high rate of obesity in the country contributing to a higher incidence of preventable illness. It is expected that legislation including and following the Affordable Care Act will reduce the price of these goods and services because health care practitioners and biotechnology organizations will need to market their products in a manner that allows them to be more accessible to the general populace. The profitability of the health care field in the United States is one of the most significant problems with the existing system, and action must be taken in order to reduce its cost.

The British health care system is exemplary because it simply uses the taxes paid by citizens to invest in the nation’s health care. Even though taxation in this region is a higher percentage of income, this system allows all people to have equal access to care. As a consequence, the government regulates health care which promotes the quality and health of their citizens. Overall, England is considered to be a healthier country with less disease because everyone could access this care. This has important epidemiologic implications because the spread of disease is less rapid as a result. By switching to this system, America’s economy could become more significantly stabilized. Therefore, it would be valuable to explore this health care option within our country as well.