The major issues or the questions that have been bothering half the nation in the recent past include the question that, are Obamacare or the Affordable Care Act (ACA) working? And what are the probable effects of the same on the labor market and the economy as a whole? While the debates on, if or not the act will work continues, let us see the positives and the negatives of the act that work in favor or against of the whole system.
Obamacare pros and cons:
Pros:
1- More comprehensive health care:
The best thing about Obama health plan is the fact that legislation works on the mission to provide improved health services to people of all age and income group. Basically the plan mainly aims at streamlining the system to stimulate more respect for the people who live below the poverty line and the elderly, who lack in constant access to medical care.
2- Reduced “job locks”:
When people stay with a single employer due to the health insurance, you get a Job lock. The ACA or the Obama health plan aims at standardizing the medical coverage that most of the insurers offer and thus encourage the responsiveness and movement in the labor force.
3- Increased entrepreneurship:
Before computerized medical records and the benefits of Obamacare, small businesses extremely less likely to provide the health care benefits to employees for the simple reason of cost of insurance being very high. The affordable Obamacare cost primarily helps the entrepreneurships by enabling them to provide their employees with health insurance they can afford.
Cons:
1- Increase in premiums:
It flaunts a considerable raise in the premiums to be paid by the younger individuals. The under-60 crowd is most likely to pay more in form of premiums.
2- Tax rates might increase:
The other concern that has been making people doubt the fact that if Obamacare health care will work or not, is the fact that there is an expected increase in the marginal tax rates. The Obamacare cost and the cost of the electronic medical records are more likely to burden the non-elderly household earning with the added five or more percentage points to the average income tax rate of the average marginal income.
3- The upsetting subsidy cliff:
If an individual sees an increase in their income coming through the way of a promotion or if the member of a family enters the workforce, the subsidy cliff might concern them. It is quite likely that the promotion or an additional family member going the workforce might lose you some subsidy, as they might qualify for a newer tax bracket. Education and awareness are the keys to make certain that families and individuals plan in accordance.
The medical device industry is highly concerned with providing the best solutions for health care insurance solutions, and Obamacare health plan has to be the most viable solution that has been catching up, quite fast in the recent past. The questions however are still there on the potential and competence of the plan.
