Health Insurance

Topics: Health insurance, Health care, Health economics Pages: 5 (1684 words) Published: November 18, 2013
President Obama's plan to insure healthcare for all marks a positive step for the well – being of our country's citizens. Still, the Patient Protection and Affordable Care Act (PPACA) also known as ObamaCare has been one of the most controversial topics of our time. In order to understand why this is such a controversial topic we must understand exactly what this act means to the people. The Patient Protection and Affordable Care Act (PPACA) states that with limited exceptions, every resident of the United States must have health insurance that must meets certain basic requirements. Beginning in 2014, individuals who do not acquire health insurance will be subject to a fine. This fine will rise over time, reaching $895 per person or 2.5 percent of income, whichever is greater, by 2018. Beginning in 2014, each state is to establish an Affordable Insurance Exchange. Separate exchanges are to be established for individuals and small businesses with fewer than 50 employees. The intention is that private insurance companies will compete by offering policies on the exchanges to individuals and small businesses. Low – income individuals and small businesses with 25 employees or less will be eligible for tax credit to offset the cost of buying health insurance. For the employers, beginning in 2014, every firm with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan. Firms with more than 50 employees must offer health insurance or pay of $3,000 to the federal government for every employee who receives a tax credit from the government for obtaining health insurance through their state's health exchange. The government plans to regulate insurance companies by requiring all insurance to participate in a high – risk pool that will insure individuals with pre – existing medical conditions and were unable to get insured.

There will be some changes to Medicaid and Medicare as well. Eligibility for medicaid will be expanded to people with incomes up to 400 percent of the federal poverty line; in 2011 the federal poverty line was an annual income of $10,890. In order for the government to fund this program several new taxes were added. In the beginning of the year, workers who earn more than $200,000 will have their share of the medicare payroll tax increase from 1.45 percent to 2.35 percent, and investors who earn more than $200,000 will pay a new 3.8 percent tax on their investment income. This debate played a very important role during the 2008 presidential campaign. As a country we must create innovations that will drive our economy and better our residents.

Similar to The Great Depression and the tenebrous years during the Hoover administration, the country needs change because this is what's happening now. Franklin Delano Roosevelt, arguably the greatest President of all time, was elected because of his commitment to create government programs that would eradicate the great depression. During his time in office he established the “New Deal” program. This program established 42 new organization which amongst other things created jobs. Many of these organizations such as Social Security Administration, The SEC and FDIC (Federal Deposit Insurance Corporation) are still here today, helping our Government safeguard our economy. However the economic crisis was so severe that these programs alone could not end the Great Depression. Even though the “New Deal” programs did not completely resolve our issue at the time it guided and helped the U.S. become the superpower that we are today. People use the idiom “If it ain't broke, don't fix it”, and clearly something broke therefore I welcome change and you should too.

Universal health care is not something new. Many countries around the world have similar health care policies. In Canada, Japan and the United Kingdom the government either supplies health care directly by taking ownership of the hospitals or by paying for most...

References: (Source: CBO, 2009 Study on preventative health care, August 7, 2009)
(Obama 's speech published September 9, 2009 by nytimes.com)
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