Problems with Ppaca Essay

1388 Words Dec 8th, 2013 6 Pages
Higher Costs

PPACA has touted new benefits without measures to cut cost.1 One should know that in America there are already federal laws and programs to cover the elderly (Medicare), the poor (Medicaid), and uninsured children (CHIPs), In addition there is basically free or low cost care to anyone who needs it and it is available if one looks for it. Examples include: Shriner’s hospitals, free clinics, and providers who do pro bono work. In case that wasn’t enough, there are also laws in place that ban practices of charging more to people with pre-existing conditions in employer-based health insurance. The 60% of Americans who get their healthcare insurance from their employer may actually be hurt by PPACA. All one needs to do is make
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Previously, these employees were covered under fully-insured plans and they were exempt from the requirements of Internal Revenue Code 105(h). In short, the small businesses and highly paid individuals will pay tax premiums on healthcare plans, another example of discriminatory actions taken against wealthy individuals. The fallout may be an estimated 80% of small businesses that will either drop healthcare plans completely, or be forced to spend on higher priced new plans.2

The liability piece of the healthcare system was not touched.1 Perhaps it is because the trial lawyers association is a large donor to the democratic party. Without liability reform, namely tort reform, providers will continue to practice defensive medicine. Costs are going to continue to rise as providers continue to practice and order tests that may not be needed. Defensive medicine occurs when providers alter clinical decision making because of the threat of medical liability.6 The American Academy of Orthopaedic Surgeons reports that more than 90 percent of physicians reported practicing defensive medicine within the past 12 months. Liability reform is estimated to result in a savings between 5%-34%, by reducing the practice of defensive medicine. This would equate to an annual savings of $54-$650 billion dollars.6

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