Will Blalock

Ms. Caruso
UWRT 1103
06 October 2015
Should the federal government be involved in healthcare?
The cost of healthcare in America is astronomical. The federal government
has implemented the Affordable Care Act, or Obamacare, in attempted to fix a
broken system that has denied millions access to the proper health insurance.
Annually, the U.S. spends approximately $3.8 trillion on healthcare (Mercola).
Despite the soaring prices of healthcare and a broken system, the federal
government should not have any involvement in healthcare because the
Constitution does not allot power to control healthcare. The Affordable Care Act has
sparked controversy because many feel that it is an invasion on personal right, but
it also is designed to help those less fortunate.
Healthcare in America has become excessively expensive. In 1958,
healthcare spending per capita was $1,083 in inflation-adjusted 2012 dollars: in
2012 the healthcare spending per capita was $8,953 (Obamacare: Before and
After). This can be attributed to a variety of factors, such as increased wealth within
America, advances in medicine and technology, and inefficiency within the system.
The U.S. spends more annually, on healthcare, than the ten following prodigal
spenders combined. However, the U.S. has a 16% approval rate on healthcare,
whereas the UK has an approval rate of 26%, while spending about 92% less than
the U.S. (Mercola). This is counter intuitive considering the U.S. spends
considerably more than any other country. The significant increase in healthcare
spending is attributed to a variety of factors.
Healthcare spendings increase comes directly from wasteful spending,
patients being insulated by the third-party payment system, and invisible lines

Will Blalock
Ms. Caruso
UWRT 1103
06 October 2015
restricting citizens from receiving insurance from another state. For every dollar
spent on healthcare, thirty cents is wasted, which results in $750 billion annually.
Waste is a result of inefficient care and unnecessary administrative costs (Mercola).
This waste, which could be avoided, makes the overall cost of healthcare much
greater. Another big contributor to the high costs of healthcare is the third-party
payment system. This is when companies or the government pay for the health
insurance of its employees, because of this Americans tend to get more care then
they would otherwise because they do not have to pay the real price (Obama:
Before and After). It is only logical for Americans to take advantage of this, if
someone were to pay a percentage of your water bill, wouldnt you be less
conscious about the amount of water you are using? The biggest player in driving
up the cost is the invisible state lines, which restricts people from obtaining
insurance from other states. The McCarran-Ferguson Act in 1945, a federal act,
allowed states to regulate health insurance plans inside their borders, to prevent
competition among companies (Cauchi). The American economy is sustained based
off the free market system, which promotes competition and keeps prices low due
to competitive pricing. These factors are the major reasons for the copious price of
healthcare. Cost, of course, is only one characteristic of the broken healthcare
system.
American doctors are unhappy and massively outnumbered. Most doctors
have the right intention when beginning their journey to help people. Many
discover in time that the system they have been thrown into is not based around
their original intention of helping people. According to Dr. Zubin Damania, 82% of

Will Blalock
Ms. Caruso
UWRT 1103
06 October 2015
doctors feel that fighting to influence the system would prove to be ineffective, and
doctors, the ones on the front lines, need to take control back from the so-called
leaders such as, insurance companies, scholars, and spin doctors, spokesmen who
spin the truth to the media to create bias (Drake). Those who actually practice the
profession should be in control of the system because they are present and
consciously aware of the negative effects of the system. With forty-four million
Americans uninsured, the demand for doctors and an effective system is great (The
Uninsured). In 2011, it was estimated that there were only two-hundred and forty
doctors for every one-hundred thousand Americans (Physicians). When only 0.24%
of the population being physicians, it is only logical that they feel infinitesimal. It is
clear that the healthcare system in irrefutably broken. The federal governments
response is the Affordable Care Act, which does not solve the major problems noted
above.
In 2010, President Barack Obama signed the Affordable Care Act (ACA), or
Obamacare, into law on March 23rd. Notable changes consist of forbidding
insurance companies from dropping coverage, eliminating pre-existing conditions
and gender discrimination, allowing young adults to remain on their parents
coverage longer, and protection against rate increases (Obamacare Facts:
Affordable Care Act, Health Insurance). These changes address problems that
pertain specifically to insurance companies policies, which are necessary to
repairing the system. As far as cost is concerned, the ACA contains the Health
Insurance Marketplace which is designed to allow low-to-middle class citizens to
compare prices of plans, an expansion in Medicaid, and requires large companies to

Will Blalock
Ms. Caruso
UWRT 1103
06 October 2015
provide coverage (Obamacare Facts: Affordable Care Act, Health Insurance). Since
the cost of health insurance is so high, it makes sense to provide less affluent
individuals and families with more options pertaining to plans and prices, increasing
Medicaid, which ultimately provides subsidies to low-income individuals with
healthcare, and requiring large corporations to provide insurance to their
employees. Could these logical changes have drawbacks? If so, do the benefits
outweigh any disadvantages?
Many problems have been addressed by the ACA, but do those solutions
benefit the well-being of the People and the overall prosperity of America
economically and socially. Since about 14% of the population is uninsured, or 44
million Americans, it is critical to lower that rate to achieve a healthier America.
However, to accomplish this, a great deal of money is required, which will come
from new taxes such as the individual and employer mandates (Obamacare: Pros
and Cons of Obamacare). The individual mandate is fee implanted when an
individual or family chooses not to buy insurance. This fee, in 2015, is determined
by the higher cost of the two following; 2% of annual income or $325 per person
annually (The fee you pay if you done have health coverage). For the employer
mandate, employers with fifty or more full-time employees, those who work thirty or
more hours a week, and do not choose to provide affordable coverage are penalized
by a fee (Employer Mandate). Starting in 2016, to avoid the penalty, employers
must provide coverage to 95% of employees, the plan must provide 60% or more of
the total cost allowed, and the coverage has to be affordable, meaning less than or
equal to 9.5% of annual income. If these guidelines are not followed a $2,000 fee is

Will Blalock
Ms. Caruso
UWRT 1103
06 October 2015
required per employee (Employer Mandate Fact Sheet). The employer mandate is
designed to make healthcare more affordable, however, companies are less than
thrilled by the mandate, which is causing them to cut employee hours in order to
avoid these penalties (US employers slashing worker hours to avoid Obamacare
insurance mandate). As a result of these mandates, individuals are required to pay
a fee if they choose to not buy health coverage and employers are hurting their
employees by reducing the number of hours they work in order to avoid penalties.
While the idea appears to be good in theory, individuals are penalized for making
the conscious decision to not be covered and business are hurting employees, who
have bills and expenses, by cutting their hours to avoid mandates. While the
mandates play a critical role in cost of health insurance, the ACAs new protections
also have a place in cost. As stated previously, the ACA forbids insurance
companies from dropping coverage if one gets sick and eliminating pre-existing
conditions. As a result, insurance companies are required to cover sick people at no
extra expense, which results in everyone having to pay higher premiums to
compensate for those with higher costs (The Pros and Cons of Obamacare). In the
eyes of libertarians, this must be frustrating that healthy individuals have to pay the
same amount as those who are sick and require a greater funds. In America,
freedom is a guaranteed right, which appears to be hindered by the ACA. Looking
at the constitution, how was the federal government allowed to pass a law that
appears to restrict the freedom of decision?
America is so appealing because of its many characteristics that promote
freedom. At the time the constitution was written, health insurance was not a thing.

Will Blalock
Ms. Caruso
UWRT 1103
06 October 2015
In the preamble, the introductory statement of the constitution, the phrase
promote general welfare is used, which pertains directly to Article I, Section 8,
known as General Welfare Clause. The key word in this phrase is promote, which is
defined as support or actively encourage. This portion contains the enumerated
powers, which is a list that begins the powers of Congress (The Constitution of the
United States: A Transcript). Section 8 of Article I of the Constitution reads, The
Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to
pay the Debts and provide for the common Defense and general Welfare of the
United States In this section, Congress is not granted the power to pass
legislation pertaining to the general welfare of the United States, but allows
Congress to spend money for general welfare. However, the Tenth Amendment
states that the powers not granted to the government are to be reserved for the
states or the people (General Welfare). Based off the Constitution, the federal
government does not have the power to pass laws related to the general welfare of
America. The law essentially forces Americans to buy into the ACA system, if not,
they are penalized. The concept of redistributing wealth to allow health insurance
access to those less fortunate is a good, but when it becomes required of everyone,
Americans tend to get upset because most believe in self-responsibility. It is simply
is not fair to let a minority of individuals take advantage of a system that enslaves
them through government incentives.
In conclusion, the federal government had perfectly good reason to intervene
because of a system that had astronomical cost, low approval rates, and unhappy
Americans. In response, the federal government passed the Affordable Care Act,

Will Blalock
Ms. Caruso
UWRT 1103
06 October 2015
which solved problems but also created others at the same time. Depending on
how one interprets the Constitution, the Affordable Care Act could be considered
good, and bad at the same time.