How Obamacare Negatively Impacted The Budget
United States of America, a welfare country with a healthcare system based mainly on private hospitals and insurance companies covering the health policies, experienced the Affordable Care Act (ACA) or Obamacare program which tended to setup a large health care system with government covering a large portion of the health sector especially the uninsured Americans. As big programs require big funding at different levels to cover both government and non-government aspects, it means increase in tax, cutting finance of other projects, stopping them altogether or going into deficit/negative budget.
Obamacare was projected to mainly cover the health of public on the government's part. With the initial uproar caused by the Healthcare and health insurance companies owned by the business tycoons in the insurance sector, it faced a lot of criticism. Concerns being that major cost being spent would increase the pressure of deficit and debts on government, it would result in increase in taxes and slicing in the budget of other projects to support Obamacare, it would also increase healthcare costs for government initially, etc.
It was estimated that the subsidies and healthcare cost assistances offered by the ACA may discourage the labor force of America from working, resulting in labor force decline. They would eventually become a burden and put constraints on the economy. Also the Congressional Budget Office's (CBO) budget projections from the year before and after Obamacare, support the argument that it impacted economy of the country adversely as in reduction of work force resulting in lower federal revenues. The decrease in federal deficit was also lower than its projections.
It was also suspected to create unemployment ratio hikes. The increase in tax regulations to sustain this healthcare system was definitely detested on the part of tax-payers such as families having to pay additional taxes on high incomes, pharmaceutical sales/companies, medical equipment makers, drug companies, etc. The part of the law enforcing upon individual to acquire mandatory health insurance or otherwise face financial penalty or fine, was termed as extra-constitutional.
The reason behind additional taxes on health insurance companies was to help pay for the Obamacare health system. These taxes were too, in turn, paid by the people in the form of increased premiums. Raise in the medical deduction limit by 10% was also not appreciated by the public. Unfortunately, this healthcare system turned out to be much more expensive in long-term than expected. One of the most vital concern was that how much it will cost the American people to implement it and risks that came with the cost was a whole different story. It was believed to be a discouragement to the system of open competition.
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