The healthcare reform bill or what is popularly known as Obamacare is a hotly debated issue. Many people are asking for its repeal and the US Congress is gearing up for the same after the presidential term ends. There are advantages or benefits of the healthcare reform bill and there are some disadvantages. Let us assess the healthcare reform bill pros and cons.
List of Pros of Health Care Reform Bill
1. Coverage for the Uninsured
32 million people in the United States did not have insurance at the time when health care reform bill was initiated and passed. Those without insurance get access to healthcare.
2. Prevention of Diseases
Several diseases can be averted and contained through the preventive services which are provided free of cost. Since all insurance policies need to include the ten essential health benefits and people are going to be preemptively tested for possible ailments, the likelihood of an expensive treatment can be reduced.
3. More Families Qualify for Medicaid
The increase in the income requirement for Medicaid by 133% allows more families to qualify than what was possible earlier.
4. Tax Credit
Those who don’t qualify for Medicaid get tax credits instead.
5. Nonexempt Coverage for Children
According to the health care reform bill, children cannot be denied coverage by insurance companies owing to any preexisting health conditions. This is applicable to all and sundry, with or without traditional health insurance. Also, insurance providers would have to continue providing coverage to those who get sick after having had the insurance coverage when they were healthy.
6. Increased Tax Credit for Businesses
Businesses continue to get the tax benefits for offering health insurance to its employees. The tax credit is increased to 50% with effect from 2015.
List of Cons of Health Care Reform Bill
1. Futile for Insured Citizens
The bill is not for people who have existing insurance policies and can comfortably afford the coverage. About five million people stand to have their employer healthcare plans cancelled.
2. Burden on State/Federal Exchequer
The huge cost burden in the first few years, including the spending on preventive testing and care would cause a dent in the fiscal health of the country.
3. Additional Taxes
People without insurance and those who don’t qualify for or don’t have Medicaid would be assessed a tax of 1% of their income or $95, whichever is higher. Those earning $200,000 and higher and couples filing for $250,000 and above would pay additional taxes for Medicare. Excise taxes for medical device importers, manufacturers and several types of firms have been revised and increased.