How To Measure Health Insurance Subsidies

Measuring Health Insurance Subsidies

On June 25, 2015, The Supreme Court in a decision of 6 to 3 upheld the Affordable Healthcare Act allowing millions of low and moderate income Americans to continue to receive health insurance subsidies.

This law obligates every American to subscribe to a health insurance program, either through his/her employer or privately. Depending on the individual or family income, the cost of the monthly premium could be partially or entirely subsidized.

The affordable health care act is able to help millions of previously uninsured people and the cost is partially subsidized by the Federal Government through tax credits.

According to this law, a health insurance company cannot refuse insurance to individuals with preexisting conditions and companies with more than 50 employees are obligated to obtain from health insurance companies affordable premium health care for their employees.

Measuring health insurance subsidies is complex and it depends on the number of formerly uninsured who signed up through the affordable healthcare act for health insurance, and the amount of monthly subsidies provided, presently estimated to be an average of $272 per citizen. Out of the 10.2 millions people who signed up with health insurance companies through the affordable healthcare act, 8.7 millions receive subsidies from the government.

Measuring health insurance subsidies is a big concern for the Republicans who believe the cost of those subsidies, approximately 700 billions in 2014 is a cost that was never approved by the Congress and spending even larger amounts when more, still uninsured people will enroll, will push the country into even deeper debt.

Another concern was that a health insurance company, due to the lower premiums they charge through the affordable healthcare act, might diminish the quality of medical services to patients by reducing the access to certain hospitals and doctors, but in the past two years it was determined that that was not the case.

The large health insurance companies have consolidated their operations to streamline their cost and a smaller, local health insurance company might consider a merger with a large health insurance company for the same reason.

Although measuring health insurance subsidies is an ongoing process and the cost could escalate to more than it is now, providing affordable health care for all its people is a duty of an advanced civilization, and now United States is moving forward to accomplish this obligation.
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