Health care market failures, such as adverse selection, can be addressed through government policy and regulation. By limiting barriers and providing access to health care through policy such as the health insurance expansion under the Affordable Care Act, policy makers can address failures and ensure adequate insurance coverage for healthy, unhealthy, and at-risk populations. For this Assignment, you examine the health insurance expansion policy and evaluate economic implications.
Analyze the rationale for health insurance expansion under the Affordable Care Act. How does health insurance expansion relate to the problem of adverse selection?
Consider the economic implications of health insurance expansion in the United States. What are the economic implications of health insurance expansions for health care organizations in your own state or region?
In a 4- to 6-page paper, address the following:
1 -Analyze the rationale for health insurance expansion. Include how health insurance expansion relates to the problem of adverse selection.(The analysis shows depth and breadth in critical thinking when addressing the rationale for health insurance expansion, including how health insurance expansion relates to the problem of adverse selection).
2 -Evaluate economic implications of health insurance expansion in the United States. Include, specifically, how health insurance expansions might impact health care organizations in your own state or region.
The paper should be 4-6 pages, not including the title and reference pages. Refer to the Essential Guide to APA
please, if you cannot offer 4 to 6 pages do not touch it. Thank you© BrainMass Inc. brainmass.com April 4, 2020, 1:28 am ad1c9bdddf
THE AFFORDABLE CARE ACT
Problem of Adverse Selection
The problem of adverse selection is the biggest threat to individual and small group health insurance markets. Adverse selection means that people with poor health who are likely to have greater medical spending than average population will buy coverage at a given price. The selection of such high cost individuals into coverage plans triggers a vicious cycle which can lead to market failures. The insurer, in order to cover the healthcare needs of this costly group, raises the premium, leading to more high-cost individuals buying the coverage. It further generates more adverse selection into coverage. When the situation becomes extreme, market is simply not able to function. As a result many people remain uninsured as policies available to them may not seem beneficial in their case, though same policies might be a good deal for someone in worse health. Those who choose to take coverage end up paying more prices.
The Affordable Care Act
In March 2010 President Obama signed a major healthcare law making it one of the biggest healthcare reforms in the history. The Affordable Care Act expands healthcare to country's poorest to cover millions of uninsured Americans. For decades millions of uninsured Americans faced problem of increasing healthcare costs. The Affordable Care Act aims to control healthcare costs while maintaining high quality standards of American medical care system. The purpose of the act is to extend coverage to uninsured and reform insurance markets for those with pre-existing conditions to ensure that they have access to affordable coverage. It improves quality and efficiency of care by strengthening physician and hospital incentives.
These delivery system reforms are paired with coverage reforms that ...
Affordable care act and how it solves the problem of adverse selection