Impact of Affordable Care Act and American Rescue Plan on U.S. Healthcare

Introduction

With the introduction of the Affordable Care Act (ACA), millions of previously uninsured people now have greater access to health insurance, which has had a substantial impact on the U.S. healthcare landscape. The purpose of this study is to compare health insurance status and its determinants before and after the partial and full implementation of the ACA. The study examines changes in determinants and coverage rates to shed light on how the ACA has affected the healthcare sector.

Sources Addressing the Affordable Care Act

Park, E., & Corlette, S. (2021). American Rescue Plan Act: Health Coverage Provisions Explained. American-Rescue-Plan-v2-3.

The American Rescue Plan (ARP) Act of 2021, signed into law by President Biden on March 11, 2021, is a comprehensive COVID-19 relief package containing numerous provisions aimed at strengthening both public and private health insurance coverage. It builds upon previous COVID-19 relief efforts, such as the Families First Coronavirus Response Act. Furthermore, the ARP Act adjusts premium tax credits under the Affordable Care Act to cap premium contributions based on income, providing relief to families across various income brackets. These measures collectively aim to address the pressing healthcare needs exacerbated by the COVID-19 pandemic and improve access to healthcare for millions of Americans.

Barnichon, R., Oliveira, L. E., & Shapiro, A. H. (2021). Is the American Rescue Plan taking us back to the ’60s?. FRBSF Economic Letter, 27.

The American Rescue Plan, a substantial fiscal support package enacted during a robust economic recovery, has raised concerns regarding potential inflation risks. Researchers Barnichon, Oliveira, and Shapiro (2021) analyze the plan’s impact on the economy, particularly its effect on inflation. They evaluate labor market slack and make precise projections about future inflation using the ratio of open positions to unemployment as a criterion. The American Rescue Plan may temporarily increase inflation by about 0.3 percentage points annually until 2022. The Affordable Care Act notably decreased the uninsured population, improving access to essential medical care, while also incentivizing quality healthcare delivery through preventive care and value-based payment models.

Byttebier, K. (2022). COVID-19 and Capitalism: Success and Failure of the Legal Methods for Dealing with a Pandemic. Springer International Publishing. 978-3-030-92901-5 (1).

The Supreme Court’s review of the ACA’s individual mandate has significant implications for healthcare reform (Larrat, Marcoux, & Vogenberg, 2012). Removal of this provision could destabilize the ACA’s financial framework, hindering progress in healthcare access. Meanwhile, the Trump administration’s budget cuts, including downsizing the CDC, delayed the pandemic response (Byttebier, 2022).

Byttebier’s research underscores how economic ideology shapes healthcare policy and affects public health infrastructure. Thus, the ACA ruling intersects with broader discussions on healthcare law and crisis management. “Covid-19 and Capitalism” highlights how such policies impact global disease surveillance.

Impacts of the ACA and the American Rescue Plan Act on the U.S. Health Care Ecosystem

Enacted in 2010, the Affordable Care Act aimed to improve access to and affordability of healthcare in the US. It mandates health insurance coverage for all individuals through either the Health Insurance Marketplace or government programs. Additionally, the ACA offers subsidies to those unable to afford insurance, ensuring that everyone can access high-quality healthcare without facing financial hardship.

Affordable Care Act Overview

The Affordable Care Act laid the groundwork for the American Rescue Plan Act by establishing structures to expand healthcare access and affordability. The ACA established a structure for healthcare equity and financial support by expanding insurance coverage through subsidies (Keith, 2021). Given that many Americans already had access to healthcare, ARPA could focus on more comprehensive economic relief initiatives. Further evidence of ongoing efforts to fortify the healthcare system started by the ACA comes from ARPA’s funding for healthcare and support for ACA marketplaces.

American Rescue Plan Act Overview

In 2021, the American Rescue Plan Act (ARPA) was enacted to provide financial assistance to those affected by the COVID-19 pandemic. Direct payments to individuals, increased unemployment benefits, financing for immunization programs, assistance for small companies, and backing for regional, state, and local administrations were all included. The design of ARPA aimed to address short-term economic issues while laying the groundwork for long-term recovery, focusing on boosting economic growth and alleviating financial burdens.

Present and Future Impact on the U.S. Health Care Ecosystem

The United States’ healthcare system is now far more affordable and accessible thanks to the ACA and ARPA. While ARPA’s financial support during the pandemic helped individuals and healthcare providers, the ACA’s mandates and subsidies have increased coverage. In the future, these programs will continue to influence the healthcare system by encouraging resilience, affordability, and equity.

The economic assistance measures implemented by ARPA serve as a model for future initiatives to ensure affordable, sustainable access to healthcare. The American healthcare system will continue to develop because of the foundation that the ACA and ARPA have created. ARPA’s larger economic support initiatives were made possible by the ACA’s emphasis on affordability and increased insurance coverage (Keith, 2021). This shows that ARPA is committed to tackling pressing economic issues.

Conclusion

Based on the sources and analysis presented in this paper, the future of U.S. healthcare appears promising. Both the American Rescue Plan Act and the Affordable Care Act have made substantial contributions to increasing healthcare accessibility, lowering costs, and providing financial support during emergencies, such as the COVID-19 pandemic. ARPA’s emphasis on resolving urgent economic issues and the ACA’s plans to increase insurance coverage and encourage preventive care show a shared commitment to fortifying the healthcare system. Even though there are still obstacles to overcome, the foundation these programs have created points to a promising future for American healthcare.

References

Keith, K. (2021). The American Rescue Plan Expands The ACA. Health Affairs, 40(5), 696–697.