The Affordable Care Act Reality 

July 30, 2017

The Affordable Care Act Reality 

By Padmini Arhant

The Affordable Care Act became comprehensively effective in 2014 and not 2010.

The subsidies to Insurance companies are not passed over to end consumer as co-payments and deductibles have been higher despite the law.

The premiums have not been cheaper while the insurance industry has been rewarded with 35 million subscribers through mandatory subscription.

There is no penalty on Insurers unlike on subscribers and employers on non-compliance.

The constant slogan on 20 million losing insurance would happen under the current law. The reason is the funding enabled largely on higher payroll taxes and individual mandates burdening small business, the middle income groups, the youth and healthy population.

The fiscal budget for 2018 on mandatory spending covering Medicare and Medicaid costs at $582 billion and $404 billion respectively are expected to rise further with bulk of the payments derived from general tax revenues becoming the primary source. The current 43% would soon increase to 62% affecting the younger groups, the middle class and baby boomers in work force.

There are already proposals to hike taxes for the income bracket between $150,000 – $300,000 in the tax reform bill sparing those earning above the target income to accommodate anamolies in the present health care bill that would exacerbate consumer spending with ripple effects on retail business and the economy.

Politics punishing the middle class and lower income neither qualifying for Medicaid nor benefiting from tax credits with health insurance premiums exceeding qualifying deductions is economically unsustainable with inevitable backlash from the electorate.

The ACA needs amendments in these areas with facts and figures reconciling reality.

Thank you.

Padmini Arhant

Author & Presenter

Spouse in Divine Mission










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