The Patient Protection and Affordable Care Act - Rationale for Healthcare Reform

The Patient Protection and Affordable Care Act

Rationale for healthcare reform

"Healthcare reform is a high national priority for the public, policymakers, payers, health professionals and healthcare organizations. Reforms are driven by multiple factors including patient and caregiver demand for higher quality and safer care at lower costs; health professionals who are pursuing safer care for our society; health professional shortages; and demographic, social and economic influences" (American Society of Health-System Pharmacists, 2013). One thing was certain, costs were increasingly growing out of control. "By the 1990's, healthcare was viewed as an industry crisis. Medicare spending reached $110 billion annually"(Radomile, 2012). Some of the factors contributing to the growing number were: Technology, prescription drugs, chronic disease, aging population and administrative costs. Technology and prescription drugs can be insinuated as one of the top spending forces in the healthcare cost. " Some analysts state that the availability of more expensive, state-of-the-art technological services and new drugs fuel health care spending not only because the development costs if these products must be recouped by industry but also because they generate consumer demand for more intense, costly services even if they are not necessarily cost-effective"(Health Policy Explained, 2010). In today's world, chronic diseases are becoming more prevalent. Demand from these diseases on the health care system becomes more expensive. The cost of patient's treatments and long term stays in the hospital will rise. " It is estimated that health care costs for chronic disease treatment account for over 75% of national health expenditures"(Health Policy Explained, 2010).

Another main cause for a health care reform is the aging population. People are starting to have a longer life span, which means the chance of developing a illness is greater. One of the commonly mentioned generations known for their huge population are the " baby boomers". The babies of post world war II soldiers are now reaching an age where the need for health care is essential. "Some say caring for this population has raised costs. This trend will continue as the baby boomers will begin qualifying for Medicare in 2011 and many of the costs are shifted to the public sector"(Health Policy Explained, 2010). One of the least recognized factors of the increase in cost are administrative costs. "It is estimated that at least 7% of health care expenditures are for administrative costs (e.g., marketing, billing) and this portion is much lower in the Medicare program (<2%), which is operated by the federal government"(Health Policy Explained, 2010). People can't sometimes tell that this is an issue because the mixed private and public system.

Political climate and socio-economic events that drove this legislature

As of the 2008 election heated up, it was made clear that the United States was in a healthcare crisis. The newly elected president Barack Obama didn't waste any time in fulfilling his election promises. On March 23, 2011 he proudly signed the Patient Protection and Affordable Care Act. For the 43 million people uninsured, this was going to be available to them and reduce the overall costs of health care. One of the main problems socio-economically driving this legislator was that the government spending was at an all time high. "Health care costs have been rising for several years. Expenditures in the United States on health care surpassed $2.3 trillion in 2008, more than three times the $714 billion spent in 1990, and over eight times the $253 billion spent in 1980. Stemming this growth has become a major policy priority, as the government, employers, and consumers increasingly struggle to keep up with health care costs" (Health Policy Explained, 2010).

Also, for the 43 Million citizens uninsured in the United States, this plan was going to make it so every citizen was covered. One reason