The Impact of Federal and State Health Care Policies on Consumer Costs

The Impact of Federal and State Health Care Policies on Consumer Costs

Policies for federal and state health care impact consumer costs. Policies influence how state and federal health care plans cover patients, how much they pay providers and affect consumer costs. Policies that affect state and federal health care plans often have far-reaching consequences in the private insurance world. There are both positive and negative effects of this impact.

Positive Benefits of Policies

Some positive benefits can be found in fiscal savings of the consumer. “The ACA prohibits lifetime (and annual) limits on coverage and requires plans to cap consumers’ annual out-of-pocket costs” (Aron-Dine, 2017, para. 4). According to Aron-Dine (2017), the savings also extend to the premiums paid (para. 8). Another benefit of state and federal health care policies is the affordability of care for people with pre-existing conditions that were previously unable to afford coverage. With the focus of the insurance changing to push for more preventative care, the consumer, in theory, will spend less on emergency services (Gruessner, 2016).

Negative Benefits of Policies

The policies that make it possible for more people to be covered, cause health care premiums to rise to offset the coverage of chronically ill individuals. While most consumers were protected from rate increases, some high-income individuals did see large rate increases (Aron-Dine, 2017, para. 14). Although another study shows that the increase of prices caused by regulations does the most harm on the poorer population as it results in higher prices. The higher prices affect the budget more drastically for the poorer population than the wealthier population (Chambers & Collins, 2018, para. 9).

Impact of Policies on Consumers Outside of Federal and State Insurances

Those outside of the federal and state health care programs also experience impacts from the policies. The benefits of expanding affordable coverage have a negative impact on other consumers’ costs. According to Gruessner (2016), “Consumers are also faced with higher insurance rates than before” (para. 9). Higher premiums and deductibles are ways the health care insurances are more common. Health care companies are

Conclusion

In closing, there are several impacts of health care policies on consumer costs. Some are positive impacts and others are negative. Some consumers pay less since they are able to qualify for health insurance under new policies. Expanding coverage will also influence health insurance companies to raise premiums and offer more high-deductible plans. With health care policy always changing and evolving, policymakers must keep in mind the impact on consumer costs.



References

Aron-Dine, A. (2017, October 11). Health Care: Issues Impacting Cost and Coverage. Retrieved from Health Care: Issues Impacting Cost and Coverage

Chambers, D., & Collins, C. A. (2018, April 19). How Do Federal Regulations Affect Consumer Prices? An Analysis of the Regressive Effects of Regulation. Retrieved from How Do Federal Regulations Affect Consumer Prices? An Analysis of the Regressive Effects of Regulation

Gruessner, V. (Ed.). (2016, October 17). How the Affordable Care Act Changed the Face of Health Insurance. Retrieved from How the Affordable Care Act Changed the Face of Health Insurance