Question

The Affordable Care Act (ACA) has increased the share of the population with health insurance. Most of the newly insured are young and reasonably healthy. As a result, the ACA will primarily affect the demand for primary care services, and many anticipate a shortage of primary care physicians. (Porter, 2015).

Some other observers suggest that this concern is overblown (Auerbach et al. 2013). The production of primary care is changing in ways that shift its supply. One change is the rapid expansion of patient-centered medical homes, which emphasize a greater role for technology, nurses, physician’s assistants, and nurse practitioners. Another change is the growth of nurse-managed clinics. Both of these innovations reduce the number of physicians needed to provide primary care for a population.

Question

The ACA increased some payments for primary care. How would this affect the demand for primary care physicians?

Answer 1

The Affordable care Act (ACA) aimed at providing healthcare insurance coverage for the uninsured. Even though the ACA increased some payments for primary care. There will still be reduced healthcare cost that falls on the people's pocket because of the insurer providing for a larger share of the clinic and hospital visits costs. This reduced cost of healthcare will induce people to visit the clinics and healthcare more often for primary or secondary healthcare services. Thus the increased demand for health care from people will increase the demand for primary care physicians.