Essay about Clayton Antitrust Act

748 Words Nov 22nd, 2015 3 Pages
The ACA consists of hundreds of provisions in which the healthcare sector must abide by. And the most significant challenge with this act, and the one that’s driving many mergers, lies in the economics created as a result of the law. To provide coverage to 38 million more Americans is costly, estimated to increase costs by $1.7 trillion dollars per year. In order to pay for this, the government has imposed tax increases on citizens making more than $250,000 per year, medical device makers, and health insurers. In addition, payments to hospitals were cut by $250 billion per year starting in 2012. And the payments to providers for those individuals covered under the ACA are at a level that doesn’t fully cover the costs of services provided, resulting in additional financial hardship to providers. This increased regulation and taxes, decreased reimbursement, and growth of non-profitable users of healthcare services, is the fundamental driver of the increase in mergers that has occurred since the passing of the ACA.
Clayton Antitrust Act Overview The Clayton Antitrust Act was enacted by Congress in 1914 as an effort to strengthen the antitrust laws put into place under the Sherman Act of 1890. To understand the reasons Congress passed this additional antitrust act, it’s important to understand the Sherman Act and the shortcomings of this act as viewed by Congress. The Sherman Antitrust Act passed in 1890, and was the first major legislation passed to address…

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