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The Upward Struggle of President Barack Obamas Health Care Plan

The exponential effect of Obama-Care upon the U.S economy

By, James Albert Holmes III

A term paper presented to Dr. Stephen Kyereme(instructor) in Partial Fulfillment of the Requirements of BUSN 5620(Current Economic Analysis) February 22,2013

Executive Summary My alternative motives become very aperient very quickly, after the first couple of pages of this term paper. Even though, I have came across what is considerably substantial evidence on both of the arguing block I remain unbiased. However, my overall outlook at the bill itself has been changed forever. The after shock of the Obama-care will be felt for centuries to come. With my of worlds economist hard work day and night, with the only true and proving factors in my of the analogy being time to examine the long lasting effects Obama care on the U.S economy. At first glance the Health Care Act seemed to be completely incent of any crime, malice or injustice behavior. However, on second glance, it proved to not be able to withstand scrutiny of harsh examination. Certainly, I agree that everyone on earth should have free healthcare however it may not make the best economic sense. Furthermore, this is very near impossible in hundreds of 3rd world countries, so only major countries and the wealthy countries can even attempt at this heroic humanitarian goal. However, after researching much more about the act I discovered that it also is a finical bill out for many pharmaceutical companies because their patients expire between 2014-2020. Obamas health care bans the seal of cheaper generic drugs from secondary and overseas companies, along with the help of FDA for 12 years allowing only the Biologic medical products to be strongly administrated to the 100s millions it covers. This slump that is major pharmaceutical companies face is the patient cliff, hence the true name of Obama care- Patient Protection and Affordable Care Act. This makes this much more complex!

Table of Contents

Brief History
On March 23, 2010 together with the Health Care and Education Reconciliation Act, the Patient Protection and Affordable Care Act (PPACA) was signed into law by President Barack Hussein Obama. The act represents the most significant government expansion and regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965. PPACA is allegedly aimed primarily at decreasing the number of uninsured Americans and reducing the overall costs of health care. It seems to provide a number of mechanismsincluding mandates, subsidies, and tax creditsto employers and individuals in order to increase the coverage rate. Additional reforms are aimed at improving healthcare outcomes and streamlining the delivery of health care. PPACA requires insurance companies to cover all applicants and offer the same rates regardless of pre-existing conditions or sex. The Congressional Budget Office projected that PPACA will lower both future deficits and Medicare spending. Not quiet or anything close to universal healthcare but safe start, for such a capital dieted America.

Problem Statement The Health care plan that everyone wholeheartedly accepted my not be the best for everyones budget in the near future. Many reports havent acknowledged the great leaps and hurtles being overcome for healthcare and the American people, and at what cost? A less valuable and lesser qualities on the medical side for some, a different retirement plans or completes 360 for others. Medical treatment becoming more public/universal makes a overworked medical staff. But, great news for the

groups of Americans that never had a great healthcare insurance plan anyway. Many dont consider those more than 40% of middle class Americans that are going to be affected by this plan. As they have to watch the quality of physicians become more stretched and stressful to accommodate for the millions of others that going to be experiencing the same benefits for a faction of the cost.

Objectives To enlighten the pro-Obama healthcare reform act, activist about what all is exactly in the act itself not just what is discussed in the media. Nevertheless, I dont expect many to read every single page of the lengthy over 2,000 page bill in grave detail and understand much of the legal jargon anyway. Moreover, what I do want for is the equilibrium of justice and reason to shine into eyes of democrats and republicans alike.

Methodology I used nearly all second hand research, with such sort time to prepare many first hand tactics where not even explored. So, much of my research comes from personal experience, Participant Observation, and objectivity measures had to be entertained. No interviews or Questionnaires where employed to gather information, neither where surveys and test sampling recent active related research in the area because of time constraints.

Method of Analysis
Most of the information gathered in this paper are of quantitative type utilizing descriptions of mathematical estimations and calculations from governmental sites and books along with greatly respected and esteemed notable journals, articles and books that prove to relevant to the topic and supporting evidence. The software that was used was Microsoft Office 2011 Macintosh edition, which includes Word, Excel, PowerPoint, Outlook, and Communicator along with many more.

Discussion of Results The key issues of the paper how the United States people will cope with the ever chaining governmental mandates in years to come. Additionally, the FDA blockade of the generic brands from cheaper competitors is that really the greatest thing to de in a time of economic turmoil. Is that, whats best for the American people? Not only are the American people biting the bullet so these healthcare decisions affect the world and global economic infrastructure. Some call Obama a healthcare dictator many that have read the bill state: the government will mandate the health care and so will the balloon rate premiums. Others state that abortion and safer sex regulations and medicals agents will be administered to all ages depending on age. The ones that have it the hardest is the upper middle and upper class basically being forced to play amount double their current rates by 2014 on into 2020. The United States currently spends roughly as much on defense ($661 billion in fiscal year 2009) as the rest of the world combined. But that's a pittance compared to what we spend on three major entitlement programsSocial Security, Medicare and Medicaid. Combined, they cost $1.38 trillion or almost 35% of the budget, compared with 17% for defense. And entitlements will only grow dramatically. The current unfunded liability for Social Security and Medicare, according to the 2009 Social Security and Medicare Trustees Report, is nearly $107 trillionseven times the size of our economy. For example:

The three tier system

Flat fee: The first tier for lower income taxpayers is fixed, starting at $95 for 7

calendar year 2014 (the first year the mandate is effective), $325 in 2015, and $695 in 2016 and beyond. The total family penalty is capped at 300% of this flat dollar tax $2,085 in 2016 for those earning less than about $110,000, according to the CRS. Percentage of income: The next tier is based upon a percentage of income: 1.0% in 2014, 2.0% in 2015, and 2.5% thereafter. Cost of a basic health plan: However, as household income increases, eventually the percentage tax will rise to equal the cost of the national average premium for a bronze-level health plan, where it is capped. (The bronze plan is expected to be the least expensive plan in the line-up of policies that will be offered through the Obama-Care health insurance exchanges. The Congressional Budget Office estimates that in 2016 the cost of a bronze-level plan for a family would be between $12,000 and $12,500 a year.)


Will Obama-care force me to things I wish not to do?

In the near future (2016) all American citizens will governmentally mandated to have some form of health care it you dont have a health care provider. Also, the current plans/ policies are to pass though a government operated and state regulated insurance policy examination. Although, Obama-care says they want free care for everyone, but they exclude immigrants no matter their condition. By the year 2018 a 40% excise tax on high cost ("Cadillac") insurance plans is introduced many of the same health rate mandated are now ballooned. Furthermore, in 2019 this care reaches all foster children finally, by 2020 the Medicare Part D coverage gap (a.k.a., "donut hole") would be completely phased out. But only then will the results be some of the problems will become more appropriated and handled. If this is not force I dont know what is, the real question is why? I would consider myself a proud American, I do not wish to ne revolutionist or pioneer of any movement. I have simply love and respect my freedom and laws that protect the American people. Our constitution is all that wholes America together along with the inalienable rights. In summary, I pose the question at what extent is help trading on American liberty; if ever such a day comes that we must choose between the two something has gone terribly wrong. There many questions left unanswered and unchallenged just for the sake of healthcare. I just hope that in years to come the Obama-care is nothing we rerate and dislike.



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