Public Budgets for Health Care Reform
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The paper discusses the recently-passed Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act of 2010 (HR 4872) that impose additional Medicaid expenses on American states. The paper discusses the various stakeholders in health care reform and addresses three challenges that result from these reforms; the escalating health care costs in society, funding health care reform in states with large existing deficits, and the issues involved in long-range budget planning and how they will impact health care stakeholders. Another issue this paper considers with respect to public budgets for health care reform, is the need to implement a funding safeguard in the event that the cost savings predicted do not materialize, or that costs escalate at a higher than expected rate.
From the Paper:"The recently-passed Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act of 2010 (HR 4872) were designed in part to effectively contain the budget deficit by implementing controls are health care costs. According to the Congressional Budget Office (2010), the cost savings occur from 2012 onward, with the most significant cost savings accruing from 2012-2013. However, the first two years of the plan will see the deficit increase as the result of these bills, by a combined $7 billion. This represents a challenge to the federal government in that the economic slowdown continues to depress tax receipts, making such expenditures difficult to absorb.
"The bigger public budgeting issue pertaining to health care reform is the impact on state budgets. Several states are fighting the reform because it imposes additional Medicaid expenses on the states. Medicaid is paid for jointly by the federal and state governments. While the federal government expects to see significant budgetary benefits from health care reform that will offset the Medicaid cost expansion, states will not see those same benefits. Instead, some states estimate that the cost of Medicaid expansion and its administration will increase Medicaid costs upwards of 25%. This is of considerable concern for states already facing a steep decline in tax receipts - and for some states like California a massive pre-existing deficit (Wechsler, 2010)."
Sample of Sources Used:
- Congressional Budget Office. (2010). Estimated budget impact of the legislation. Congressional Budget Office. Retrieved June 13, 2010 from http://www.cbo.gov/ftpdocs/113xx/doc11379/AmendReconProp.pdf
- Drum, K. (2010). Healthcare reform won't hurt state budgets. Mother Jones. Retrieved June 13, 2010 from http://motherjones.com/kevin-drum/2010/05/healthcare-reform-wont-hurt-state-budgets
- Griffey, T. (2010). Un-busting the budget: The impact health care reform will have on Washington State. Olympia Newswire. Retrieved June 13, 2010 from http://www.olympianews.org/2010/03/24/keiser-health-care-reform-washington-state/
- Klein, E. (2010). The five most promising cost controls in the health care bill. Washington Post. Retrieved June 13, 2010 from http://voices.washingtonpost.com/ezra-klein/2010/03/the_five_most_promising_cost_c.html
- Kolenc, V. (2010). Healthcare reform will pose challenges, hospital execs say. Third Age. Retrieved June 13, 2010 from http://www.thirdage.com/medical-care/healthcare-reform-challenges
Cite this Analytical Essay:
Public Budgets for Health Care Reform (2013, March 04) Retrieved March 29, 2020, from https://www.academon.com/analytical-essay/public-budgets-for-health-care-reform-152515/
"Public Budgets for Health Care Reform" 04 March 2013. Web. 29 March. 2020. <https://www.academon.com/analytical-essay/public-budgets-for-health-care-reform-152515/>