The Affordable Care Act (ACA) has made a huge impact on healthcare delivery syst
ID: 2726387 • Letter: T
Question
The Affordable Care Act (ACA) has made a huge impact on healthcare delivery system and especially in regard to financial management of healthcare organizations and delivery of high quality healthcare services.
The timeline for the Affordable Care Act continues until 2015. Locate 3–4 updates on the timeline that are related to healthcare finance. Discuss these changes or initiatives. Your discussion should include what is changing and your thoughts on how this will impact healthcare finance now and in the future.
U.S. Department of Health & Human Services. (2011). Timeline of the Affordable Care Act.
Retrieved from http://www.healthcare.gov/law/timeline/index.html
Explanation / Answer
The Affordable Care Act (ACA) has made a huge impact on financial management and healthcare delivery system.
The update on Timeline that are related to helathcare finance are as follow:
1. Insurance company Accountablity: The Insurance company will be held accountable and need to justify in advance any increase in premium of 10% or more. Only if justification are accepted then Insurance company can increase premiums.
2. Rx Discount for senior citizen : Senior citizen with Medicare will get key preventive services for free, and also receive a 50% discount or respective discount on Medicare ( For specified brands only ).
3. Small Business Tax credit : Small business which provide health insurance benefit to their employees will get tax credit upto 35% of employer contribution to employees of Health insurance. Small Non-profit organizations receive upto 25% credit. This will motivate small business to insure its workers.
4. Health Insurance Market place : From 2104 onwards, Individuals and small business can buy Health insurance plans in an new transperant and competitive insurance market place. The market place will offer a variety of Health insurance plans that provide additional benefits and at a affordable cost.
The Affordable Care Act (ACA) has made a major impact in Healthcare finance. In the current scenario it will make Healthcare insurance care equipped with additional benefits like preventive services, discounts, benefits for women and senior citizen. It will create a sense of accountablity of Health insurance companies and thus minimizing frauds leading to induce competition by making Health care insurance cheap and accesable to all in future.Tax credit to small business will motivate small business to cover more and more employees under Health insurance coverage.
In Future, There will be an open competitive health insurance market, which will be governed by strict laws that restrict any unfair / fraudalent practices. And these beneficial incentives and openness will motivate a mojor part of society to asociate themselves with Health care system.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.