Software & Finance - Monthly Magazine Online

Volume 3 - Issue 11

November 2013

Economics - The Impact of ObamaCare on US Economy


The affordable care act (ACA) also known as ObamaCare is aimed to reduce the insurance cost for the people living in world's No. 1 economy. It extends the coverage to many people who does not have health insurance today. It also removes the term for increasing insurance premium based on pre-existing conditions. Overall it can lower the uninsured rate by expading the private and public insurance coverage.


You can visit to buy a medical insurance for you and your family. Whereas the original plan is very good, the question now is "is it really affordadble for everyone in the united states"? No, because it does increase the premium for the people who are currently having health insurance for many years and maintaining good health.


Consider a case - Mr. X, aged at 45, is working as an independant contractor for the last 15 years and you do not have an option to buy insurance through employer. He has an option to get health insurance from any carrier like Aetna, Blue Cross, Cigna, Kaiser, etc. Currently if he pays about $ 300 as insurance premium for himself, he can see his premium increasing between 30% to 120% based on the insurance provider. Even though Mr. X is maintaining very good health, he has to pay more. Since there might be many new people getting insurance from the same insurance carrier and insurance company can not increase the premium based on pre existing condition. Their only option is to use the age as an criteria. So Mr. X has to pay more to offset the losses that can out of new people getting insurance coverage and having poor health.


The same story goes into the small companies that can get you group rates through insuance companies. Currently insurance and medical treatment cost is very high in USA. With the introduction of ObamaCare, it reduces the insurance cost to the people who are currently not insured, is really a great thing. But it makes the insurance and treatment cost very high for upper middle class and richest people in USA.