Question

As an Assistant Director for the Public Health Alliance of a major metropolitan area made up of a number of public health organizations in the area. You have been tasked with the responsibility to develop a report, which identifies the implications for your members of President Obama's Healthcare Affordable Care Act. They want your recommendations on how these initiatives will likely impact their operations and what they should do to prepare for the expected changes. Considering the various analytical tools in financial management, how would you go about this analysis? Speculate on how these healthcare initiatives will impact public health organizations.

Answer 1

Assistant Director for the Public Health Alliance - Major Metropolitan Area

Public health organizations in the area

• Benefit from tax credits worth thousands; average subsidy per person is $6000
• Health insurance from employers
• Health insurance for all, and, from those who do not get it
• four tier health coverage - covering 60, 70, 80.90 percent of the costs; plans sold on the health exchanges
• Plans to be sold on exchanges; expansion in Medicaid for those with an income of 138 percent
• Benefits for those who provide health insurance - Ambulatory patient services, hospitalization, emergency services, prescription drugs, laboratory services, and, pediatric services
• Insurance for preventive, and, wellness service; and, chronic disease management
• Transitional reinsurance - Payment to insurers that covered high-cost individuals
• Reduce reimbursement to private Medicare, health plans for Medicare beneficiaries. This will reduce Medicare spending by $132 billion
• A hardship exemption from the fine for individuals
• ACA designed a program of creation of non-profit health organizations. These are known as co-ops. Profits are re-invested into the organization. These are consumer-operated, and, consumer-oriented plans.These organizations offer insurance through the Marketplace.
• These co-ops can service 200000 without a deep capital base.