Negative Economic Impact of the Patient Protection and Accountable Care Act
The Patient Protection and Affordable Care Act (PPACA) also referred to as ObamaCare, federal healthcare law, Affordable Care Act, or ACA, is a United States federal Statute signed into law on March 23, 2010, by President Barack Obama. In combination with the Healthcare and Education Reconciliation Act, it represents the most significant regulatory overhaul of the U.S. healthcare system since the passage of Medicare
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The PPACA is estimated to increase the federal deficit by $75 billion, per year, resulting in the nation’s publicly held debt to grow to $753 billion higher at the end of 2020 (Campbell). Once the government begins to pay health insurance for individuals through subsidies and bring people into the government insurance program in the later half of the decade, this growing debt will balloon. The CBO’s updated 2011 estimates found that the PPACA will increase federal outlays by roughly $604 billion between 2012 and 2021 (Blahous). The excessive debt will drive out productive investments and lead to an estimated 670,000 lost job opportunities annually. The imposed tax hikes are anticipated to cost taxpayers $503 billion over 10 years and more in the future to subsidize government spending on new entitlements (Dubay).
The standing budget analysis is very limited, as it does not account for how the policy’s combination of spending and increased taxes alters the macroeconomic performance of the economy. The heavy initial costs of the policy hinder economic growth with higher inflation and interest rates, overwhelming the benefits the law hoped to gain in later years.
Within the PPACA, legislation double counts $53 billion in Social Security payments, counts $70 billion in premium payments for long-term care insurance programs as revenues, and ignores up to $115 billion in discretionary costs associated with the PPACA