Description
The Patient Protection and Affordable Care Act (PPACA) requires that U.S. citizens and legal residents obtain qualifying health coverage. Write a report of 2,000–2,500 words that explores the individual mandate section of the new health reform law. Complete the following:
- Explain the individual mandate included in the PPACA, and include the tax penalties that will be imposed if a person or family does not obtain qualifying health coverage.
- Who will qualify, and what premium and cost-sharing subsidies will be available to individuals?
- Research the income levels of individuals in your state by reviewing information available on this Web site. How do you think the individual mandate will affect the citizens and legal residents in your state?
- If you were required to make one policy change or enhancement to ensure success of the individual mandate included in the PPACA, what would you recommend?
- Assess the historical relationship between the cost of health care and outcomes in the United States with the cost of health care and outcomes in another country. What policies could be considered to assist in changing the relationship between costs and outcomes to a more efficient relationship in the United States, if at all?
Note: Your report should use APA formatting, and you must include 4 references, 2 of which are peer-reviewed sources from health care journals.
Explanation & Answer
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Running Head: PPACA’S INDIVIDUAL MANDATE
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PPACA’S Individual Mandate
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PPACA’S INDIVIDUAL MANDATE
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PPACA’s Individual Mandate
The individual mandate for every person in the USA as per the Patient Protection and
Affordable Care Act (PPACA) of 2010 is that each should have at least a basic level insurance
cover for their health. This law ensures that each person in the society is entitled to health care
regardless of their level of income. The law is officially known as the affordable care act. This
makes health services affordable to all citizens. The concept behind this law is to create a
common risk pool for health issues. Risk pools are made up by groups of policy holders
whereby every policy holder is required to pay insurance premiums. The fact is there are very
few chances to find all the insured persons getting sick at the same time. This means only few
will end up filing claims. The law ensures that a large number of healthy people pay premiums
thus ensuring that there is enough money in the pool to pay the medical bills of those that may
fall sick (Ericson, & Kessler, 2016).
Tax penalties imposed if a person or family does not obtain qualifying health coverage
The Patient Protection and Affordable Care Act (PPACA) also have stated the penalties
for those who fail to take an insurance cover for their health. These penalties will make many
people take the insurance cover; this is because a large number of people will be scared of the
penalties imposed and will be forced to pay premiums instead. The law states that the penalties
for failing to pay for the health coverage are either a dollar amount a given percentage of the
family income. The annual penalty amount stated by this law for the year 2014 ranged between
95 dollars for each uninsured adult, 47.5 dollars for each uninsured child up to a maximum of 85
dollars per family or else one percent of the family’s income according to whichever is greater.
In the year 2015, there was an increase in the previous year’s set amounts for penalties, the
PPACA’S INDIVIDUAL MANDATE
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amounts range shifted to 325 dollars per adult and 162.5 dollars per child to a maximum amount
of 975 dollars per family or else two percent of family income depending on the highest amount.
Finally on the year 2016 and beyond the amounts set were695 dollars per adult, 347 dollars per
child up to a maximum amount of 2,085 dollars for a single family or 2.5 of income (Ericson, &
Kessler, 2016).
Qualifications for premium and cost-sharing subsidies
Not everyone living in Unite States of America who is qualified for The Patient
P...
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