Current Health Care Reform Package

The present Health Care Reform has been proposed by the serving American president. Obama’s plan is to contain the available health care providers, medical doctors, and to improve the existing health care system. This will not only ensure that all the American citizens have an access to health care, but also receive reasonable care. According to Marmor, Oberlander, and White, the president is planning to create a National Health Insurance Exchange (NIE). Through this program, American citizens are expected to benefit from different types of private insurance options. Additionally, people and small businesses will gain from a fresh public plan derived from the benefits obtained by the members of the Congress. This fresh public plan will ensure that insurance coverage is available, reliable, and meaningful to the American people. Apart from the public plan, president Obama has also proposed other private insurance preferences.

He argued that the public insurance option is essential to the United States’ citizens as it is capable of challenging other private insurance companies. This implies that there will be a stiff competition between the public and private insurance organizations. Consequently, this will not only improve the quality of services provided during the provision of health care, but also lower insurance costs making it affordable to all the American people. He also emphasized that the fresh public plan will provide a level playing ground for both plans and ensures that they are given an equal opportunity. For instance, it will make sure that the public insurance plan does not have an advantage over private insurance plans. People who are not able to pay for insurance and employer-based coverage respectively will be financially assisted. Consequently, they will be able to buy their preferred insurance plan.

The other health care reform proposed by the president is the reduction of health care costs. Huge amount of savings will be obtained from protective services and national Health Information Technology. The government is also planning to authorize the use of generic drugs to acquire substantial savings. It will discuss with the companies producing drugs to reduce the prices of drugs bought through Medicare Part D. Therefore, this will reduce health care costs by roughly 2,500 US dollars each year.

How the current health care reform package will be financed

Even though the proposed health care reform is an important component of the president’s domestic plan, it requires a considerable amount of money. For instance, it is estimated to cost roughly $2 trillion for a period of ten years. Therefore, American government is planning to obtain funds from the up-front federal investments. The proposed health care reforms will be financed by money obtained from part of the America’s financial budget. However, the federal government is required to consider other important projects before allocating the money from the financial budget. Other funds will also be obtained from the Recovery Act investments. Arguably, this will save the American people from paying a lot of tax. Reduction of tax will increase the living standards of many individuals. The other additional sources of finance like Children’s Health Insurance Program (CHIP) Reauthorization Act had already been established. This Act is expected to provide funding for the next five years (Lapan, 2012).

Besides, the normal allocation, it will also provide an extra $44 billion in portions. The additional financial assistance is projected to assist roughly four million freshly insured children including the 11 million people who have already been insured. Other financial assistance will come from the tax obtained from cigarettes. For instance, the American government decided to increase the rate of cigarette tax to finance the health care reform package. American Recovery and Reinvestment Act (ARRA) will ensure that enough money is available for the smooth running of the health care system. National Institute of Health is expected to provide 650 million US dollars for the care and treatment of patients suffering from obesity. Moreover, $500 million will be allocated for the training of medical practitioners. Loan repayment and other incentives are provided to the nurses and doctors to ensure that they provide adequate services to their clients. Consequently, this has been considered to be an important section of the health care reforms.

Who and what has influenced the passing of this plan

The passing of this plan has been greatly influenced by the current American president (Obama) and the entire governing body. Additionally, it has also been influenced by the growing concern about the increase in health care costs with minimal improvement in the services provided. Even though there is an increased spending on health care, approximately 40 million American citizens are still not able to access health insurance. In addition, the number of deaths caused by inadequate health care is anticipated to be higher than that from other developed countries. The passing of this plan has also been influenced by the fact that most of the families were not able save enough money for their upkeep.

Moreover, high health care costs made it impossible for their businesses to compete in the local and international market. Premiums have greatly increased in the past years hence it was necessary to introduce the plan. Steady increase in the number of American people, who are not covered, also led to its introduction. An increase in the drug prices have led to the high health costs. Therefore, there was need for the American citizens to have better health care services. The passing of this plan has been politically influenced. For instance, Obama had to come up with the plan to win the votes of American citizens.

The economic effects of the economy based on the success or failure of this plan

In the event that the plan becomes successful, American government will have to spend a lot of money to ensure that its people access affordable health care. Success of the plan implies that small businesses and their workers will be forced to pay heavy tax. Consequently, this will negatively affect the living standards of the American citizens. Prices of products will increase hence interfering with the living standards of the people. Small mall business organizations will pay back by offering low salary to their workers. As a result, they (workers) will not be able to afford the increased health care costs. A number of businesses will also not be able to provide health insurance cover to their workers.

Conversely, failure of this plan will also have a number of economic effects. The cost of health care will steadily increase hence increasing the living standards of the American people. Life expectancy and the rate of death will also increase. Therefore, American people and the government will have to spend a lot of money in treating patients.


Lapan T (2012). Health care reform exclusions raise concerns over funding for uninsured. Web.

Marmor T, Oberlander J, and White (2009): The Obama Administration’s Options for Health Care Cost Control. Web.

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