Obamacare & Medicaid Expansion

Macroeconomics Term Paper

Ashley Baker
Wilson- ECON 2020
Salt Lake Community College
December 1, 2015

Obamacare & Medicaid Expansion

Obamacare- The affordable Care Act
The Affordable Care Act provides Americans with better health security by putting in
place comprehensive health insurance reforms that will expand coverage, lower health care costs,
guarantees more choice and enhances the quality of care for all Americans. (Affordable Care
Act, Web)
I chose to write my macroeconomics term paper about Medicaid expansion and the
Affordable Care Act (Obamacare). This topic directly relates to me, because my father recently
lost his job and it took away our health care insurance and benefits. I currently work as a hair
stylist at a salon, which does not offer benefits, insurance, vacations or paid time off. I will
discuss the benefits and the consequences of Obamacare and about the Medicaid expansion.
Until you are 26, you are allowed to be on your parents insurance. Obamacare helps
young people with limited incomes to be exempt from the fee or qualify for free or low cost
coverage though the health insurance marketplace. 6 in 10 young adults will qualify for
coverage that is under one hundred dollars a month. This coverage includes mental health,
prescription drugs, contraception, maternity and new born care. (Obamacare, Web) After losing
my insurance, I have had to go on the hunt for insurance for myself. Me and my fianc are
planning on starting a family in a year or two and would like to have the benefits of maternity
and new born care.
Obamacare does give you a penalty fee for not having minimum essential coverage. If
you are not covered by the end of the open enrollment or qualify for an exemption, youll owe a
fee for every month you go without health insurance. This is difficult for my finance because he
is a healthy, fit man. He hardly ever goes to the doctor or uses insurance. We dont see the need

Obamacare & Medicaid Expansion

for health insurance in his case, but if we are going to get penalized and pay a fee, we might as
well pay for the insurance. This is where I feel Obamacare is a catch 22. Either way they make
you pay. Nearly half of uninsured young adults report problems paying medical bills, me being
one of them. The Obamacare does have a rule that if the lowest cost plan cost more than 8% of
your income after subsidies you arent required to have health insurance. This is also a catch
22 because if you dont make that much money, you wont be able to afford a hospital bill
without insurance.
You are required to pay your fee with your taxes at the end of the year. In 2014 the
threshold was $95 per person per year or 1% of your income, 2015 is $325 per person per year or
2% of your income and in 2016 it will rocket up to $695 per person per year or 2.5% of your
income.
More than three million young adults who didnt have coverage before now have stayed
on their parents plans until age 26. (Obamacare, Web) Children can remain on a parents plan
even if they are married, not living with their parents, attending school, not financially dependent
on their parents, eligible to enroll in their employers plan.
Obamacare used to cap of at $2,000,000. But they have changed that. There is no limit to
your insurance anymore. They saw that younger adults who came down with a sudden serious
illness or are victims of an accident easily can reach that limit. This is one of the benefits that has
recently happened to Obamacare.

Obamacare & Medicaid Expansion

Medicaid Expansion
Effective January 2014, Medicaid expanded eligibility to most adults between the ages of
18 and 64 with incomes below 138 % of the federal poverty level. This was expected to add at
least 16 million new enrollees to the 68 million currently enrolled in Medicaid. Whether you are
qualified for Medicaid coverage depends partly on whether your state has expanded its program.
In all states you can qualify for Medicaid base on income, household size, and disability.
Eligibility rules differ from state to state. But if you are in a state that has expanded its Medicaid
coverage, you can qualify based on your income alone. Some new laws protect guaranteed
benefits for all Medicare beneficiaries, and provides new benefits and services to seniors on
Medicare that will help keep seniors healthy. (Piper Report, Web)
A recent report claims that the hospitals I the state that have expanded Medicaid are
already seeing significant budget savings and revenue gains. In a study, 8 states alone will have
saved $1.8 billion. (Revenue360, Web) More physicians are agreeing to accept Medicaid
patients- offering consumers a bigger pool of providers to choose from.
In many states, the low-income uninsured population and therefore the Medicaid
expansion population is disproportionately minority. For the states that do not participate in the
reformation, it would unfairly hurt the states African American, Hispanic, and Native American
citizens. In a nut shell, Medicaid expansion is also needed to help reduce racial, ethnic and
geographic disparities in health care access and quality. (Revenue360, Web))

Obamacare & Medicaid Expansion

Some issues with the expansion include states paying 10% of new enrollment costs down
the line, states are on the line for those beneficiaries that did qualify under the old rules and have
now moved into Medicaid and that the rapid growth of Medicaid enrollment has raised concerns
that states may struggle to cover these costs down the road. (Revenue360, Web)
In conclusion, we have now discussed the pros and cons of Obamacare and the Medicaid
expansion. Obamacare (the Affordable Care Act) contains many benefits, for low and middle
income families and businesses. It also contains some obstacles for high earners, larger firms that
dont insure their employees, and certain sectors of the health care industry. Does the cost
outweigh the benefits? No, the average American has more to gain and less to lose. I also believe
this is to be true about the Medicaid expansion. There are more pros then cons, including a
higher number of qualifying people. (Obamacare Facts, Web)

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References:
"Affordable Care Act." Affordable Care Act. N.p., n.d. Web. 01 Dec. 2015.
http://www.medicaid.gov/affordablecareact/affordable-care-act.html

"How Medicaid Health Care Expansion Affects You." HealthCare.gov. N.p., n.d. Web. 01 Dec. 2015.

https://www.healthcare.gov/medicaid-chip/medicaid-expansion-and-you/

"Medicaid Eligibility Expansion: Arguments For and Against States Opting for ACA Medicaid
Expansion." Piper Report. N.p., n.d. Web. 01 Dec. 2015.

http://www.piperreport.com/blog/2012/09/10/medicaid-eligibility-expansion-arguments-for-andagainst-states-opting-for-aca-medicaid-expansion/

"Medicaid Expansion News - Weighing the Pros and Cons." Revenue360 Hospital Revenue Cycle
Software. N.p., 07 July 2015. Web. 01 Dec. 2015.

http://revenue360.net/revenue360_modules/eligibility-verification/aca-and-medicaid/

"ObamaCare: Pros and Cons of ObamaCare." Obamacare Facts. N.p., n.d. Web. 01 Dec. 2015.

http://obamacarefacts.com/obamacare-pros-and-cons/

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"ObamaCare Under 26: Rules for Children and Young Adults." Obamacare Facts. N.p., n.d. Web. 01
Dec. 2015.

http://obamacarefacts.com/obamacare-under-26/