The newly passed Affordable Healthcare Act has caused much controversy amongst politicians and citizens of America. Although it is said to be beneficial in many ways, those characteristics are met by negative short and long-term consequences. What could this law mean for the large portion of GDP healthcare represents in the U.S economy? Many people believe that it will lead to a healthcare system like that of Canada or the U.K where hospitals aren't reimbursed and doctors begin to refuse new patients. .
In 2008, Barack Obama was elected president of the United States, one of the main points of his campaign platform was health care reform. The Patient Protection and Affordable Healthcare Act (PPACA) also known as "Obamacare," was signed into law by Barack Obama on 23rd March 2010 after a very close vote. Obamacare is a healthcare reform initiative introduced with significant goals such as eliminating the number of uninsured, reducing the cost of healthcare, and protecting people from insurance provisions such as preexisting conditions and benefit limitations. Since its initial proposal, through its passage, and over the past few years as Obamacare has been implemented, there have been numerous debates about its economic effects. .
From an economic standpoint, healthcare has grown to become a major portion of the nation's economy. Healthcare is a significant portion of the nation's gross domestic product and has grown substantially over the past few decades. In the 1960's, healthcare comprised about 5% of the nation's GDP but has grown to over 17% currently and is projected to reach over 20% within the next ten years.1 Key issues within the healthcare debate are supply and demand, cost shifting, 2 new taxes and penalties, and the impact of government mandates like Essential Health Benefits, preexisting conditions and maximums. These issues and changes will have a major impact on this large portion of the nation's economy.