Description and Nature of the Obamacare Program

5 pages
1208 words
Type of paper: 
This essay has been submitted by a student.
This is not an example of the work written by our professional essay writers.

Healthcare in America has been an important priority of the current administration. It has undergone significant reforms to make it more efficient. Under the Obama administration, the reforms in the medical sector have included the expansion of healthcare cover-age, establishment of health insurance exchanges that comply with market rules aimed to protect both individuals and families. Another important objective of the Health Reforms is to encourage a greater efficiency and value by delivery system initiatives and series of payments (Davis, 2010). The newly introduced reforms aim to achieve the expansion of peoples access to medical health insurance including those without coverage, make insurance covers cost effective for the people with existing covers, and slowing the rise of healthcare cost to families and individuals while reducing the federal budget deficit.

Trust banner

If this sample essay on"Description and Nature of the Obamacare Program" doesn’t help,
our writers will!

Initially, the American health sector was faced with the management challenge of high insurance premiums. The high costs associated with health insurance meant that only middle and high-class people had access to medical covers. Health is an important determinant of any economy as it directly influences labor supply and living standards. This is why it was made a priority in the Obama administration. Despite several challenges, the Obamacare program has faced, it has brought several influences to the economy. These effects have affected people at both individual and family levels.

National and State effects of the Obamacare Program

Labor supply is an important aspect of the American economy likely to be affected by the Obamacare program. These effects will be felt at both state and national levels. Labor supply is an important aspect in the service and manufacturing industries, and this makes the program a high priority to different sectors within America. This program is expected to reduce employment in the future (Congressional Budget Office, 2014). This effect is expected to be felt by the American economy by 2016. This Act will include numerous reforms in the labor sector, and this will affect the employment rates in various sectors. One aspect of change listed in this Act is a reduction in the number of hours for which employees are expected to work. Statistics show an estimated increase in the number of unemployment rates from 2.0 million in 2017 to 2.5 million in 2017 (Congressional Budget Office, 2014). In addition to the reduction in the number of hours in the labor sector, the Affordable Care Act requires that people get an increased earning. This is likely to increase labor expenses to different company management as compared to taxes.

The rise of unemployment is likely to affect the living standards of people at both national and state level. This shows the importance of this Act to the future of the American economy. The household employment sector is likely to suffer the most, as it would average to a member of the household getting affected by this program. The unemployment caused by this program is transitional as it follows different phases. Surveys show that millions of people in full-time jobs have been forced to take up part-time jobs (Gorenstein, 2016). Many employers have been forced to reduce the average number of hours for which people work. As a result, it has become expensive to provide their medical covers. Therefore, many companies have opted to employ many employees on a part-time basis. The Act does not state that the part-time employees be provided medical covers. Many employers have used this option, as it is likely to increase or maintain their profit margins in the economy. The transition from full-time to part-time employees has been done based on education levels and age (Gorenstein, 2016).

Effects of the Obamacare on citizens

As an American citizen, the Obamacare Act has different effects. The results have been both positive and negative. The positive impacts include the provision of medical covers to all Americans at affordable costs. Health is an important issue in any economy, and this is likely to increase Americas economic performance. In addition, the citizens who already had plans will access the same plans at cheaper rates. This increases the ability of people to register their families for this program and enjoy the medical benefits. In addition, the Obamacare Act is expected to create more employment opportunities. Studies show that an increased spending in the medical sector is likely to result in job creation in different sectors (Pauly, 2003).

The American citizens are also likely to benefit from the increased spending. The increased spending will increase productivity and improve the health sector. The affordable medical covers will improve the ability of workers to insure their health. As a result, such workers will be in a better position to work and generate more income. Statistics reveal that many workers missed work and resulted in the loss of $1.5 trillion in labor market value (Bhattacharya, 2006). Therefore, with this cover, the American economy can avoid similar losses in the labor sector.


The Obamacare program has both advantages and disadvantage, but it has revolutionized the medical sector. According to this information, this program has proved to have more benefits than drawbacks, and this makes it vital to the American future. The only threat to this Act is the reluctance of many employers to insure their workers. The American government needs to find management solutions for making more companies adopt this policy. Given the fact that unemployment is the only expected effect of this policy, the government should either find ways of reducing the costs associated with this program to employers or create employment opportunities in different sectors. Since the medical cover is made cheaper for individuals and families, even the part-time employees can use this program. This program was launched in 2013 and is operational in many states. The results have been positive, and it has contributed towards economic growth. In the American economy, the leading indicators of development influenced by the Obamacare program have included labor supply and living standards. The national government is dedicated entirely towards the success of this program. It has invested in the implementation and sound management teams to ensure all medical costs are well calculated and implemented. In addition, it has taken control of the program in some states that failed to adopt the program. Accountability is assured since the program is transparent to help all stakeholders understand their roles. The American citizens are the biggest benefactors to this program since they get to access medical covers at cheaper costs. The program comprises different medical plans, and this requires people to choose plans that suit their medical needs. Therefore, the Affordable Care Act has influenced the economy in various ways, and this shows its importance towards the future of the American economy.


Bhattacharya, J.A. (2006). The labor market value of health improvements. Retrieved from Forum for Health Economics and Policy:

Congressional Budget Office. (2014). Labor Market Effects of the Affordable Care Act: Updated Estimates. The Budget and Economic Outlook, 117-127.

Davis, K. (2010). A New Era in American Health Care: Realizing the Potential of Reform. The Common Wealth Fund, 1-28.

Gorenstein, D. (2016, January 6). The effect of Obamacare on employment. Retrieved February 15, 2016, from MarketPlace:

Pauly, M. (2003, January 8). Should we be worried about high real medical spending growth in the United States? Retrieved from Health Affairs:

If you want discreet, top-grade help, order a custom paper from our experts.

If you are the original author of this essay and no longer wish to have it published on the SuperbGrade website, please click below to request its removal: