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Efforts to lower health care spending hampered by
population shift and increase of chronic diseases
Gerald Sanchez
HPA 301W
Professor Knarr
The Pennsylvania State University
2
What is the Issue?
Health spending in the United States is currently $8, 915 per capita, which is one of the
highest among developed countries (World Health Organization [WHO], 2013). In 2012, the
U.S. spent $2.8 trillion on health care (California Healthcare Foundation, 2014). Of the $2.8
trillion spent on health care, 75% went toward treating chronic illnesses (CDC, 2014). One study
from 2007 focused on the economic impact of seven chronic illnesses: cancer, diabetes,
hypertension, stroke, heart disease, and pulmonary conditions. According to the National Health
Council, the study concluded that the total economic impact was $1.3 trillion in treatment cost;
however, by 2023, the impact will be about $4.2 trillion annually (National Health Council
2014). U.S. health spending has been increasing and will continue to increase due to factors such
as a growing aging in population and an increase of chronic illnesses increasing (Mendelson &
Schwartz, 1993).
Epidemiological transition and the aging population has contributed to a rise in health
care spending. By 2030, about 20% of the American population will be over age 65 (Matthews,
2013). This population increase is due to the aging baby boomers generation. Baby boomers are
those born between 1941 and 1964; the total number of children born in this time was 76.4
million or 40% of the entire American population (History, 2010). A 2010 study showed that
80.1% of elders 65 and older live with one or more chronic illnesses (Gerteis et al., 2010). The
combination of the population aging and these people having one or more chronic illness will
increase the U.S. health spending (Mendelson & Schwartz, 1993).
According to Lynn Etheredge, an independent consultant working on health care and
social policy issues, one of the issues is different political ideologies (1986). These different
political ideologies bring about different types of policies. For example, democrats believe that
3
Americans should have access to quality and affordable health insurance (The House of
Democrats, 2015). This democratic belief brought about the Affordable Care Act (ACA). On the
other hand, Republicans believe in a patient centered health care system via free markets to
increase competition and drive down cost (Republicanviews, 2014). These opposing ideologies
contribute to no policies being able to make it out of Congress.
What is Being Debated?
Chronic illness such as cancer, diabetes, and heart conditions is one of the many reasons
medical spending rises. According to an article by Robin Yabroff, an epidemiologist, Jennifer
Lund, a research assistant professor of Global Health, Deanna Kepka, assistant professor in the
college of nursing at the University of Utah, and Angela Mariotto, chief of the data modeling
branch within the division of cancer control and population sciences (2010), the estimated cost of
cancer was expected to increase 27% from 2010 to 2020. The medical cost annually for cancer is
$124.5 billion currently, and by 2020, the cost will be $157.8 billion (Yabroff et al., 2010).
According to the American Diabetes Associations research, the medical cost of diabetes will also
rise from $174 billion in 2007 to $245 billion in 2012 (American Diabetes Association, 2014).
The Centers for Disease Control and Prevention (CDC) reports that heart disease is the number
one leading cause of death in the U.S. In 2010, the total cost of cardiovascular disease was $444
billion (CDC, 2010). In total, about $846 billion will be spent on these three chronic illnesses
alone. Treating chronic diseases is different from acute illnesses because chronic means lifetime.
Treatment over time is necessary for those with chronic illnesses compared to those with acute
illnesses; these factors cause health care spending to increase.
In comparison to other developed nations, the U.S. ranks last on quality, efficiency,
equity, and patients living healthy lives (Davis, Stremikis, Squires, & Schoen, 2014). The
4
Commonwealth Fund surveyed both patients and primary care physicians (PCP) from 11
countries (Davis et al., 2014). The Commonwealth Fund survey gathered data of each country’s
medical practices (see Appendix A). This survey also collected data on patients and PCPs views
on their country’s health care systems (Davis et al., 2014). The information was then ranked
from 1, being the highest, to 11, being the lowest in comparison to other countries. Counties
being compared in this survey include: the U.S., Canada, U.K., France, (Davis et al., 2014).
According to this data, the U.S. differs from these other nations in regards to not having
universal health care (Davis et al., 2014). David Squires, a senior researcher in the
Commonwealth Fund, found that 50 million people are uninsured as of 2014 (Collins, 2014).
Even though millions of people do not have insurance, “millions more… have some kind of
insurance, but the coverage isn’t really good enough to protect them fully if they actually become
ill,” said Squires in the October issue of the New England Journal of Medicine (Collins, 2014
para. 5). If the U.S. wants to increase access and quality, Congress will need to make regulations
that imitate those from other developed countries, countries such as Canada have more patient
access and quality at a lower cost per capita (Davis, Stremikis, Squires, & Schoen, 2014).
The ACA was created based on the belief of expanding access. One of the primary goals
of this act is to increase preventive care, resulting in fewer chronic diseases nationwide. As the
number of chronic diseases decrease, so will health care spending. Policies such as the ACA
could reduce healthcare spending in the long run. However, Republicans do not approve
requiring U.S citizens to purchase health insurance, stating that the mandate is unconstitutional
(Republicanview, 2014).
Key Policy Options and Strategies
5
The ACA contains regulations that might reduce health care spending. According to the
Robert Wood Johnson Foundation, the nation’s largest philanthropy focused on health, the ACA
contains measures to encourage providers to create Accountable Care Organizations [ACO]
(2011). ACOs include healthcare providers such as physicians, specialist, and hospitals working
together to deliver care to patients (Robert Wood Johnson Foundation, 2011). Increasing the
number of ACOs could save $4.9 billion through 2019, according to the Congressional Budget
Office [CBO] (Robert Wood Johnson Foundation, 2011). Another way the ACA will decrease
cost is by incentivizing providers. Specifically, the ACA plans to lower Medicaid payments for
hospitals with high readmission rates (Robert Wood Johnson Foundation, 2011). Starting in
2013, heart-attack and pneumonia will be the first two conditions that will be monitored for
readmission rates; the readmission rates will be compared to an expected readmission rate
(Robert Wood Johnson Foundation, 2011). If the current readmission rate is higher than the
expected rate then Medicaid payments will be reduced. This course of action will improve the
quality of care because the CBO estimates $7.1 billion will be saved over the next 10 years
according to the Robert Wood Johnson Foundation (2011). Another way the ACA will lower
cost is by monitoring Medicare and Medicaid fraud. According to the CBO, for every $1 spent
on investigating Medicare and Medicaid fraud, the government will save $1.75 (Robert Wood
Johnson Foundation, 2011). The CBO predicts that these investigations will cause Medicare and
Medicaid spending to go down by $2.9 billion; revenues will also increase by $900 million over
the next 10 years because of fraud investigation, according to the CBO (Robert Wood Johnson
Foundation, 2011).
Health reporter Sam Collins thinks that the ACA is a step in the right direction for
reducing health care costs (2014). Now, because of the ACA, the U.S. has established a shared
6
responsibility amoung the government, employers, and individuals to ensure that all Americans
have access to health insurance (Mossialos, Wenzl, Osborn, & Anderson, 2015). However,
critics who look at European health care systems believe that this step is not enough; as long as
hospitals and private insurance can set prices on medical treatment, the cost of health care will
not go down (Collins, 2014). In comparison of developed health care systems, the U.S. has the
lowest results in terms of access and highest in regards to cost (see Appendix A). The ACA is
currently giving millions of middle class Americans access to health insurance; this act has
enabled 8 million Americans to sign up for private health insurance (The House of Democrats,
2015). The ACA provided three million young adults with health insurance because they are
now able to stay on their parent’s health insurance, until age 26 (The House of Democrats,
2015). An additional three million Americans are enrolled in Medicaid because of the ACA (The
House of Democrats, 2015). Even though the ACA has increased the access of healthcare to
Americans, political parties, such as Republicans are against this act.
Republicans are more patient-focused, meaning patients should be in charge of their own
health. For this reason, Republicans are against the ACA. More specifically, some of the
initiatives provided by the ACA, republicans believe, will backfire. For example, the
incentivizing of providers to increase the quality of care will encourage medical providers to hide
simple and innocent mistakes (Republicnview, 2014). The reason for this is because medical
professionals will be afraid of all the negative outcomes such as lawsuits and trials that will come
from making a mistake such as misdiagnosis and losing medical information; these errors could
mean the hospital will lose Medicaid payments (Republicnview, 2014). Republicans argue that a
reform in this law will allow providers to admit to their mistakes; when providers admit to their
mistakes, patients will be able to seek compensation if needed (Republicnview, 2014). One of
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the main reasons Republicans are against the ACA is because they believe that this law is just
increasing economic burden on the U.S. (Republicnview, 2014). The Republican Party sent
Obama a letter to discuss their ideas, this was back in December of 2013 (Republicnview, 2014).
All this time has passed and Obama has still not responded to the letter.
Republicans have created a Health Care Reform Act, to counteract the ACA
(Republicnview, 2014). If enacted, the Health Care Reform Act will abolish the ACA in order to
save money (Republicnview, 2014). By eliminating the ACA, thousands of dollars of taxes that
is currently being spent on the act will be eliminated in the process as well (Scalise, 2015). The
goal of this act is to provide more options for individuals and businesses. Increasing options and
expanding businesses this will increase competition and decrease health cost. According to U.S.
Representative Steve Scalise, this act focuses more on patients (2015). The Health Care Reform
Act contains tax reforms that allow health care cost deduction for families and individuals
(Scalise, 2015). This would also expand the access to health savings accounts, increasing the
amount of pre-tax dollars people can deposit into their portable savings account for health care
(Scalise, 2015). The Republican Party has created an act that rivals the ACA, the determination
of which act Congress will go to is based on who the majority will be in upcoming elections
(Chen, 2014), and who will win the White House in 2016.
Future Directions and Forecasting
Lanhee Chen, a writer for the Bloombergview said in 2014, “If Republicans capture
control of both houses of Congress in November, they will have a golden opportunity to lay the
groundwork for a market-based health-care overhaul -- a goal that can only be achieved after the
next presidential election.” (para. 1). The ACA has been enacted because our current president, a
Democrat, has been pushing for this act while ignoring the Republicans reform (Republicanview,
2014). Furthermore, 25 million Americans have been relying on the ACA for health care
8
coverage. On the contrary, Republicans’ view is to scrape the ACA, going against the majority of
the public (Chen, 2014). Since the ACA currently has many different rules and regulations that
could theoretically reduce the cost, policymakers are still unsure if these regulations will yield
results. It is too soon to tell; more research on health care coverage and cost control will be
needed to make sure the ACA does all it is promising to do (Haberman, 2014).
The life of the ACA depends on who America elects as the president during the
upcoming 2016 election. The New York Times created a list of political candidates who are,
might, and will not run for president in 2016. According to the list there are four candidates who
are currently running for sure and these people are Hilary Clinton, a Democrat; Ted Cruz, a
Republican; Rand Paul, a Republican; and Jeb Bush, a Republican (Andrews, Parlapiano, &
Yourish, 2015). If Clinton becomes president, she will be pro ACA (Haberman, 2014). In the
Healthcare Information and Management Systems Society conference in Orlando, Fla., Clinton
said “I think we are on the right track in many respects, but I would be the first to say if things
aren’t working then we need people of good faith to come together and make evidence-based
changes.” (Haberman, 2014 para. 2). This means if Clinton where to go into office, she would
observe the effects of the ACA, then she would remove or add regulations to effectively reach
the desired outcome of increased access and quality at a lower cost. On the contrary, if Ted Cruz
were to become president, he would do everything in his power to counteract this law. Cruz has
often referred to Obamacare as “lawlessness on a breathtaking scale…in 2017 a new president, a
Republican president, will sign legislation repealing every word of it.” (Lerner, 2015 para. 8).
Similar to Cruz and other Republicans, Jeb Bush is also against Obamacare (Strauss, 2015). Bush
shares the same belief that Obamacare is "flawed to the core" (Strauss, 2015 para. 2). Unlike his
other Republican counterparts, Rand Paul is unsure if Obamacare should be completely scrapped
9
(Volsky, 2014). Paul still believes that Obamacare “strips away your freedom to choose what
plan works best for you and your family” and urged Congress to “repeal this partisan mess of a
law so we can start over with real input from the American people and members of both parties”
(Volsky, 2014 para. 4). The continuation of the ACA depends on who becomes president. If a
Democrat becomes president the ACA will probably continue; Clinton would not oppose the law
but she would be open to changing regulations to benefit the U.S. health care. However, if
Republicans such as Bush, Cruz, and Paul, come to office, they will most likely oppose and
reject this act.
10
References
American Diabetes Association. (2014, April 18). The cost of diabetes. Retrieved from
http://www.diabetes.org/advocacy/news-events/cost-of-diabetes.html
Andrews, A., Parlapiano, A., & Yourish, K. (2015, April 13). Who is running for president (and
who is not?). New York Times. Retrieved from http://www.nytimes.com/interactive/2015/
us/politics/2016-presidential-candidates.html?_r=0
California Healthcare Foundation. (2014). Health care cost 101: Slow growth persists. Retrieved
fromhttp://www.chcf.org/~/media/MEDIA%20LIBRARY%20Files/PDF/H/PDF%20Hea
lthCareCosts14.pdf
Centers for Disease Control and Prevention [CDC]. (2010, July 21). Heart disease and stroke
prevention. Retrieved from http://www.cdc.gov/chronicdisease/resources/publications/
AAG/dhdsp.htm
CDC. (2014, May 9). Chronic disease prevention and health promotion. Retrieved from
http://www.cdc.gov/chronicdisease/overview/
Chen, L. (2014, August 29). The republican Obamacare battle plan for 2015. Bloombergview.
Retrieved from http://www.bloombergview.com/articles/2014-08-28/the-republican-
obamacare-battle-plan-for-2015
Collins, S. (2014, October 24). Before Obamacare, America’s health care system ranked last
among developed nations. Thinkprogress. Retrieved from http://thinkprogress.org
/health/2014/10/24/3584363/american-health-care-rank-developed-nations/
Davis, K., Stremikis, K., Squires, D., & Schoen, C. (2014). Mirror, mirror on the wall, 2014
update: How the U.S. health care system, compares internationally. The Commonwealth
Fund. Retrieved from http://www.commonwealthfund.org/publications/fund-
reports/2014/jun/mirror-mirror
Etheredge, L. (1986). Government and health care costs: The influence of research on
policy. From Research into Policy: Improving the Link for Health Services. Retrieved
from http://www.upenn.edu/ldi/etheredge1.pdf
Gerteis, J., Izrael, D., Deitz, D., LeRoy, L., Ricciardi, R., Miller, R., & Basu, J. (2010). Multiple
chronic conditions chartbook 2010 medical expenditure panel survey data. Department of
Health and Human Services. Retrieved from http://www.ahrq.gov/
professionals/prevention-chronic-care/decision/mcc/mccchartbook.pdf
Haberman, M. (2014, February 27). Hilary Clinton defends Obamacare. Politico. Retrieved from
http://www.politico.com/story/2014/02/hillary-clinton-obamacare-affordable-care-act-
104027.html
History. (2010). Baby boomers. Retrieved from http://www.history.com/topics/baby-boomers
Lerner, A. (2015, March 24). Ted Cruz says he’s going on Obamacare. Politico. Retrieved from
http://www.politico.com/story/2015/03/ted-cruz-enroll-obamacare-116363.html
11
Matthews, S. (2013, October 3). How the aging population is changing the healthcare system.
Everyday Health. Retrieved from http://www.everydayhealth.com/senior-health/aging-
and-health/pressures-on-healthcare-from-booming-senior-population.aspx
Mendelson, D. & Schwartz, W. (1993). The effects of aging and population growth on health
care costs. Health Affairs, 12(119-125).
Mossialos, E., Wenzl, M., Osborn, R., & Anderson, C. (2015, January). International health
profiles on health care systems. The Commonwealth Fund. Retrieved from
http://www.commonwealthfund.org/~/media/files/publications/fund-
report/2015/jan/1802_mossialos_intl_profiles_2014_v7.pdf?la=en
National Health Council. (2014, February 29). About chronic diseases. Retrieved from
http://www.nationalhealthcouncil.org/sites/default/files/AboutChronicDisease.pdf
Oberlander, J. (2014, Winter). Between liberal aspirations and market forces: Obamacare’s
precarious balancing act. Journal of Law, Medicine, & Ethics, 42(4). 431-439
Pope, C. (2013). Legislation low prices: Cutting cost or care? The Heritage Foundation.
Retrieved from http://www.heritage.org/research/reports/2013/08/legislating-low-prices-
cutting-costs-or-care
Republicanviews. (2014, November 25). Republican views on healthcare. Retrieved from
http://www.republicanviews.org/republican-views-on-health-care/
Robert Wood Johnson Foundation. (2011). How does the ACA control health care cost?
Retrieved from http://www.rwjf.org/content/dam/farm/reports/issue_briefs/2011/
rwjf71451
Scalise, S. (2015). The health care reform act. Retrieved from http://scalise.house.gov/bill/
american-health-care-reform-act
Sood, N., Ghosh, A., & Escarse, J. (2007, September). The effect of health care cost growth on
the U.S. economy. Office of the Assistant Secretary for Planning and Evaluation. U.S.
Department of Health and Human Services. Retrieved from http://aspe.hhs.gov/health
/reports/08/healthcarecost/report.html
Strauss, D. (2015, February 6). Where does Jeb Bush really stand on Obamacare? Talking Points
Memo. Retrieved from http://talkingpointsmemo.com/dc/jeb-bush-obamacare-president-
2016
The house of Democrats. (2015). Implementing the affordable care act& strengthening medicare.
Retrived from http://www.dems.gov/healthcare/
Volsky, I. (2014, May 31). Rand Paul suddenly unsure if Obamacare should be completely
repealed. Thinkprogress. Retrieved from http://thinkprogress.org/health/2014/
05/31/3443519/rand-paul-suddenly-unsure-if-obamacare-should-be-completely-repealed/
12
World Health Organization [WHO]. (2013). United States of America. Retrieved from
http://www.who.int/countries/usa/en/
Yabroff, R., Lund, J., Kepka, D., & Mariotto, A. (2010). Economic burden of cancer in the U.S:
Estimates, projections, and future research. NCBI. Retrieved from
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3191884/
Appendix A
Note: Adapted from http://www.commonwealthfund.org/publications/fund-reports/2014/jun/mirror-mirror

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IssueBrief_Gerald Sanchez

  • 1. 1 Efforts to lower health care spending hampered by population shift and increase of chronic diseases Gerald Sanchez HPA 301W Professor Knarr The Pennsylvania State University
  • 2. 2 What is the Issue? Health spending in the United States is currently $8, 915 per capita, which is one of the highest among developed countries (World Health Organization [WHO], 2013). In 2012, the U.S. spent $2.8 trillion on health care (California Healthcare Foundation, 2014). Of the $2.8 trillion spent on health care, 75% went toward treating chronic illnesses (CDC, 2014). One study from 2007 focused on the economic impact of seven chronic illnesses: cancer, diabetes, hypertension, stroke, heart disease, and pulmonary conditions. According to the National Health Council, the study concluded that the total economic impact was $1.3 trillion in treatment cost; however, by 2023, the impact will be about $4.2 trillion annually (National Health Council 2014). U.S. health spending has been increasing and will continue to increase due to factors such as a growing aging in population and an increase of chronic illnesses increasing (Mendelson & Schwartz, 1993). Epidemiological transition and the aging population has contributed to a rise in health care spending. By 2030, about 20% of the American population will be over age 65 (Matthews, 2013). This population increase is due to the aging baby boomers generation. Baby boomers are those born between 1941 and 1964; the total number of children born in this time was 76.4 million or 40% of the entire American population (History, 2010). A 2010 study showed that 80.1% of elders 65 and older live with one or more chronic illnesses (Gerteis et al., 2010). The combination of the population aging and these people having one or more chronic illness will increase the U.S. health spending (Mendelson & Schwartz, 1993). According to Lynn Etheredge, an independent consultant working on health care and social policy issues, one of the issues is different political ideologies (1986). These different political ideologies bring about different types of policies. For example, democrats believe that
  • 3. 3 Americans should have access to quality and affordable health insurance (The House of Democrats, 2015). This democratic belief brought about the Affordable Care Act (ACA). On the other hand, Republicans believe in a patient centered health care system via free markets to increase competition and drive down cost (Republicanviews, 2014). These opposing ideologies contribute to no policies being able to make it out of Congress. What is Being Debated? Chronic illness such as cancer, diabetes, and heart conditions is one of the many reasons medical spending rises. According to an article by Robin Yabroff, an epidemiologist, Jennifer Lund, a research assistant professor of Global Health, Deanna Kepka, assistant professor in the college of nursing at the University of Utah, and Angela Mariotto, chief of the data modeling branch within the division of cancer control and population sciences (2010), the estimated cost of cancer was expected to increase 27% from 2010 to 2020. The medical cost annually for cancer is $124.5 billion currently, and by 2020, the cost will be $157.8 billion (Yabroff et al., 2010). According to the American Diabetes Associations research, the medical cost of diabetes will also rise from $174 billion in 2007 to $245 billion in 2012 (American Diabetes Association, 2014). The Centers for Disease Control and Prevention (CDC) reports that heart disease is the number one leading cause of death in the U.S. In 2010, the total cost of cardiovascular disease was $444 billion (CDC, 2010). In total, about $846 billion will be spent on these three chronic illnesses alone. Treating chronic diseases is different from acute illnesses because chronic means lifetime. Treatment over time is necessary for those with chronic illnesses compared to those with acute illnesses; these factors cause health care spending to increase. In comparison to other developed nations, the U.S. ranks last on quality, efficiency, equity, and patients living healthy lives (Davis, Stremikis, Squires, & Schoen, 2014). The
  • 4. 4 Commonwealth Fund surveyed both patients and primary care physicians (PCP) from 11 countries (Davis et al., 2014). The Commonwealth Fund survey gathered data of each country’s medical practices (see Appendix A). This survey also collected data on patients and PCPs views on their country’s health care systems (Davis et al., 2014). The information was then ranked from 1, being the highest, to 11, being the lowest in comparison to other countries. Counties being compared in this survey include: the U.S., Canada, U.K., France, (Davis et al., 2014). According to this data, the U.S. differs from these other nations in regards to not having universal health care (Davis et al., 2014). David Squires, a senior researcher in the Commonwealth Fund, found that 50 million people are uninsured as of 2014 (Collins, 2014). Even though millions of people do not have insurance, “millions more… have some kind of insurance, but the coverage isn’t really good enough to protect them fully if they actually become ill,” said Squires in the October issue of the New England Journal of Medicine (Collins, 2014 para. 5). If the U.S. wants to increase access and quality, Congress will need to make regulations that imitate those from other developed countries, countries such as Canada have more patient access and quality at a lower cost per capita (Davis, Stremikis, Squires, & Schoen, 2014). The ACA was created based on the belief of expanding access. One of the primary goals of this act is to increase preventive care, resulting in fewer chronic diseases nationwide. As the number of chronic diseases decrease, so will health care spending. Policies such as the ACA could reduce healthcare spending in the long run. However, Republicans do not approve requiring U.S citizens to purchase health insurance, stating that the mandate is unconstitutional (Republicanview, 2014). Key Policy Options and Strategies
  • 5. 5 The ACA contains regulations that might reduce health care spending. According to the Robert Wood Johnson Foundation, the nation’s largest philanthropy focused on health, the ACA contains measures to encourage providers to create Accountable Care Organizations [ACO] (2011). ACOs include healthcare providers such as physicians, specialist, and hospitals working together to deliver care to patients (Robert Wood Johnson Foundation, 2011). Increasing the number of ACOs could save $4.9 billion through 2019, according to the Congressional Budget Office [CBO] (Robert Wood Johnson Foundation, 2011). Another way the ACA will decrease cost is by incentivizing providers. Specifically, the ACA plans to lower Medicaid payments for hospitals with high readmission rates (Robert Wood Johnson Foundation, 2011). Starting in 2013, heart-attack and pneumonia will be the first two conditions that will be monitored for readmission rates; the readmission rates will be compared to an expected readmission rate (Robert Wood Johnson Foundation, 2011). If the current readmission rate is higher than the expected rate then Medicaid payments will be reduced. This course of action will improve the quality of care because the CBO estimates $7.1 billion will be saved over the next 10 years according to the Robert Wood Johnson Foundation (2011). Another way the ACA will lower cost is by monitoring Medicare and Medicaid fraud. According to the CBO, for every $1 spent on investigating Medicare and Medicaid fraud, the government will save $1.75 (Robert Wood Johnson Foundation, 2011). The CBO predicts that these investigations will cause Medicare and Medicaid spending to go down by $2.9 billion; revenues will also increase by $900 million over the next 10 years because of fraud investigation, according to the CBO (Robert Wood Johnson Foundation, 2011). Health reporter Sam Collins thinks that the ACA is a step in the right direction for reducing health care costs (2014). Now, because of the ACA, the U.S. has established a shared
  • 6. 6 responsibility amoung the government, employers, and individuals to ensure that all Americans have access to health insurance (Mossialos, Wenzl, Osborn, & Anderson, 2015). However, critics who look at European health care systems believe that this step is not enough; as long as hospitals and private insurance can set prices on medical treatment, the cost of health care will not go down (Collins, 2014). In comparison of developed health care systems, the U.S. has the lowest results in terms of access and highest in regards to cost (see Appendix A). The ACA is currently giving millions of middle class Americans access to health insurance; this act has enabled 8 million Americans to sign up for private health insurance (The House of Democrats, 2015). The ACA provided three million young adults with health insurance because they are now able to stay on their parent’s health insurance, until age 26 (The House of Democrats, 2015). An additional three million Americans are enrolled in Medicaid because of the ACA (The House of Democrats, 2015). Even though the ACA has increased the access of healthcare to Americans, political parties, such as Republicans are against this act. Republicans are more patient-focused, meaning patients should be in charge of their own health. For this reason, Republicans are against the ACA. More specifically, some of the initiatives provided by the ACA, republicans believe, will backfire. For example, the incentivizing of providers to increase the quality of care will encourage medical providers to hide simple and innocent mistakes (Republicnview, 2014). The reason for this is because medical professionals will be afraid of all the negative outcomes such as lawsuits and trials that will come from making a mistake such as misdiagnosis and losing medical information; these errors could mean the hospital will lose Medicaid payments (Republicnview, 2014). Republicans argue that a reform in this law will allow providers to admit to their mistakes; when providers admit to their mistakes, patients will be able to seek compensation if needed (Republicnview, 2014). One of
  • 7. 7 the main reasons Republicans are against the ACA is because they believe that this law is just increasing economic burden on the U.S. (Republicnview, 2014). The Republican Party sent Obama a letter to discuss their ideas, this was back in December of 2013 (Republicnview, 2014). All this time has passed and Obama has still not responded to the letter. Republicans have created a Health Care Reform Act, to counteract the ACA (Republicnview, 2014). If enacted, the Health Care Reform Act will abolish the ACA in order to save money (Republicnview, 2014). By eliminating the ACA, thousands of dollars of taxes that is currently being spent on the act will be eliminated in the process as well (Scalise, 2015). The goal of this act is to provide more options for individuals and businesses. Increasing options and expanding businesses this will increase competition and decrease health cost. According to U.S. Representative Steve Scalise, this act focuses more on patients (2015). The Health Care Reform Act contains tax reforms that allow health care cost deduction for families and individuals (Scalise, 2015). This would also expand the access to health savings accounts, increasing the amount of pre-tax dollars people can deposit into their portable savings account for health care (Scalise, 2015). The Republican Party has created an act that rivals the ACA, the determination of which act Congress will go to is based on who the majority will be in upcoming elections (Chen, 2014), and who will win the White House in 2016. Future Directions and Forecasting Lanhee Chen, a writer for the Bloombergview said in 2014, “If Republicans capture control of both houses of Congress in November, they will have a golden opportunity to lay the groundwork for a market-based health-care overhaul -- a goal that can only be achieved after the next presidential election.” (para. 1). The ACA has been enacted because our current president, a Democrat, has been pushing for this act while ignoring the Republicans reform (Republicanview, 2014). Furthermore, 25 million Americans have been relying on the ACA for health care
  • 8. 8 coverage. On the contrary, Republicans’ view is to scrape the ACA, going against the majority of the public (Chen, 2014). Since the ACA currently has many different rules and regulations that could theoretically reduce the cost, policymakers are still unsure if these regulations will yield results. It is too soon to tell; more research on health care coverage and cost control will be needed to make sure the ACA does all it is promising to do (Haberman, 2014). The life of the ACA depends on who America elects as the president during the upcoming 2016 election. The New York Times created a list of political candidates who are, might, and will not run for president in 2016. According to the list there are four candidates who are currently running for sure and these people are Hilary Clinton, a Democrat; Ted Cruz, a Republican; Rand Paul, a Republican; and Jeb Bush, a Republican (Andrews, Parlapiano, & Yourish, 2015). If Clinton becomes president, she will be pro ACA (Haberman, 2014). In the Healthcare Information and Management Systems Society conference in Orlando, Fla., Clinton said “I think we are on the right track in many respects, but I would be the first to say if things aren’t working then we need people of good faith to come together and make evidence-based changes.” (Haberman, 2014 para. 2). This means if Clinton where to go into office, she would observe the effects of the ACA, then she would remove or add regulations to effectively reach the desired outcome of increased access and quality at a lower cost. On the contrary, if Ted Cruz were to become president, he would do everything in his power to counteract this law. Cruz has often referred to Obamacare as “lawlessness on a breathtaking scale…in 2017 a new president, a Republican president, will sign legislation repealing every word of it.” (Lerner, 2015 para. 8). Similar to Cruz and other Republicans, Jeb Bush is also against Obamacare (Strauss, 2015). Bush shares the same belief that Obamacare is "flawed to the core" (Strauss, 2015 para. 2). Unlike his other Republican counterparts, Rand Paul is unsure if Obamacare should be completely scrapped
  • 9. 9 (Volsky, 2014). Paul still believes that Obamacare “strips away your freedom to choose what plan works best for you and your family” and urged Congress to “repeal this partisan mess of a law so we can start over with real input from the American people and members of both parties” (Volsky, 2014 para. 4). The continuation of the ACA depends on who becomes president. If a Democrat becomes president the ACA will probably continue; Clinton would not oppose the law but she would be open to changing regulations to benefit the U.S. health care. However, if Republicans such as Bush, Cruz, and Paul, come to office, they will most likely oppose and reject this act.
  • 10. 10 References American Diabetes Association. (2014, April 18). The cost of diabetes. Retrieved from http://www.diabetes.org/advocacy/news-events/cost-of-diabetes.html Andrews, A., Parlapiano, A., & Yourish, K. (2015, April 13). Who is running for president (and who is not?). New York Times. Retrieved from http://www.nytimes.com/interactive/2015/ us/politics/2016-presidential-candidates.html?_r=0 California Healthcare Foundation. (2014). Health care cost 101: Slow growth persists. Retrieved fromhttp://www.chcf.org/~/media/MEDIA%20LIBRARY%20Files/PDF/H/PDF%20Hea lthCareCosts14.pdf Centers for Disease Control and Prevention [CDC]. (2010, July 21). Heart disease and stroke prevention. Retrieved from http://www.cdc.gov/chronicdisease/resources/publications/ AAG/dhdsp.htm CDC. (2014, May 9). Chronic disease prevention and health promotion. Retrieved from http://www.cdc.gov/chronicdisease/overview/ Chen, L. (2014, August 29). The republican Obamacare battle plan for 2015. Bloombergview. Retrieved from http://www.bloombergview.com/articles/2014-08-28/the-republican- obamacare-battle-plan-for-2015 Collins, S. (2014, October 24). Before Obamacare, America’s health care system ranked last among developed nations. Thinkprogress. Retrieved from http://thinkprogress.org /health/2014/10/24/3584363/american-health-care-rank-developed-nations/ Davis, K., Stremikis, K., Squires, D., & Schoen, C. (2014). Mirror, mirror on the wall, 2014 update: How the U.S. health care system, compares internationally. The Commonwealth Fund. Retrieved from http://www.commonwealthfund.org/publications/fund- reports/2014/jun/mirror-mirror Etheredge, L. (1986). Government and health care costs: The influence of research on policy. From Research into Policy: Improving the Link for Health Services. Retrieved from http://www.upenn.edu/ldi/etheredge1.pdf Gerteis, J., Izrael, D., Deitz, D., LeRoy, L., Ricciardi, R., Miller, R., & Basu, J. (2010). Multiple chronic conditions chartbook 2010 medical expenditure panel survey data. Department of Health and Human Services. Retrieved from http://www.ahrq.gov/ professionals/prevention-chronic-care/decision/mcc/mccchartbook.pdf Haberman, M. (2014, February 27). Hilary Clinton defends Obamacare. Politico. Retrieved from http://www.politico.com/story/2014/02/hillary-clinton-obamacare-affordable-care-act- 104027.html History. (2010). Baby boomers. Retrieved from http://www.history.com/topics/baby-boomers Lerner, A. (2015, March 24). Ted Cruz says he’s going on Obamacare. Politico. Retrieved from http://www.politico.com/story/2015/03/ted-cruz-enroll-obamacare-116363.html
  • 11. 11 Matthews, S. (2013, October 3). How the aging population is changing the healthcare system. Everyday Health. Retrieved from http://www.everydayhealth.com/senior-health/aging- and-health/pressures-on-healthcare-from-booming-senior-population.aspx Mendelson, D. & Schwartz, W. (1993). The effects of aging and population growth on health care costs. Health Affairs, 12(119-125). Mossialos, E., Wenzl, M., Osborn, R., & Anderson, C. (2015, January). International health profiles on health care systems. The Commonwealth Fund. Retrieved from http://www.commonwealthfund.org/~/media/files/publications/fund- report/2015/jan/1802_mossialos_intl_profiles_2014_v7.pdf?la=en National Health Council. (2014, February 29). About chronic diseases. Retrieved from http://www.nationalhealthcouncil.org/sites/default/files/AboutChronicDisease.pdf Oberlander, J. (2014, Winter). Between liberal aspirations and market forces: Obamacare’s precarious balancing act. Journal of Law, Medicine, & Ethics, 42(4). 431-439 Pope, C. (2013). Legislation low prices: Cutting cost or care? The Heritage Foundation. Retrieved from http://www.heritage.org/research/reports/2013/08/legislating-low-prices- cutting-costs-or-care Republicanviews. (2014, November 25). Republican views on healthcare. Retrieved from http://www.republicanviews.org/republican-views-on-health-care/ Robert Wood Johnson Foundation. (2011). How does the ACA control health care cost? Retrieved from http://www.rwjf.org/content/dam/farm/reports/issue_briefs/2011/ rwjf71451 Scalise, S. (2015). The health care reform act. Retrieved from http://scalise.house.gov/bill/ american-health-care-reform-act Sood, N., Ghosh, A., & Escarse, J. (2007, September). The effect of health care cost growth on the U.S. economy. Office of the Assistant Secretary for Planning and Evaluation. U.S. Department of Health and Human Services. Retrieved from http://aspe.hhs.gov/health /reports/08/healthcarecost/report.html Strauss, D. (2015, February 6). Where does Jeb Bush really stand on Obamacare? Talking Points Memo. Retrieved from http://talkingpointsmemo.com/dc/jeb-bush-obamacare-president- 2016 The house of Democrats. (2015). Implementing the affordable care act& strengthening medicare. Retrived from http://www.dems.gov/healthcare/ Volsky, I. (2014, May 31). Rand Paul suddenly unsure if Obamacare should be completely repealed. Thinkprogress. Retrieved from http://thinkprogress.org/health/2014/ 05/31/3443519/rand-paul-suddenly-unsure-if-obamacare-should-be-completely-repealed/
  • 12. 12 World Health Organization [WHO]. (2013). United States of America. Retrieved from http://www.who.int/countries/usa/en/ Yabroff, R., Lund, J., Kepka, D., & Mariotto, A. (2010). Economic burden of cancer in the U.S: Estimates, projections, and future research. NCBI. Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3191884/ Appendix A Note: Adapted from http://www.commonwealthfund.org/publications/fund-reports/2014/jun/mirror-mirror