Topic > Affordable Care Act (Obama Care) - 623

According to a New York Times article, insurers claim that the affordable healthcare website is still flawed. This article greatly amplifies a number of economic applications. The Affordable Healthcare Act is itself a rather broad topic that involves government intervention to revamp healthcare laws. One segment of the law requires all Americans to have some sort of insurance, which in turn influences the supply and demand for health care. The government's invention of new health insurance causes the demand for health care to become more elastic. Insurers say the website is faulty and several users feel frustrated with the process which is completely computerised. A number of users also say that it has improved a lot since it was invented and is now operational in 36 states. Government ownership of affordable healthcare is a potential solution to the natural monopoly of healthcare, however without the discipline of competition or the profit motive, there is no tendency for government to over-regulate and become inefficient . The problem here is the lack of technological innovation, which will be easier to use and will encourage more insurers to be satisfied and receive the services they sign up for. If the government doesn't fix this problem quickly, it may reduce its market power, pushing people to seek insurance elsewhere. “Insurers are in “an unenviable position,” Brett Graham said, even though they don't have the responsibility or ability to fix the system, they rely on it.” The website is the primary channel through which people can purchase insurance under the Health Care Act of 2010” (New York Times). Due to the new health care law, the demand for health insurance has increased, which may cause higher comp...... middle of paper……n public responds to this new law. Will Private Insurers Convert to Healthcare.gov? Bibliography1. The New York Times; “Insurers Say Healthcare Website Still Flawed” by ROBERT PEAR and REED ABELSON; Published: December 1, 2013. http://www.nytimes.com/2013/12/02/business/white-house-praises-gains-on-health-site.html?ref=todayspaper&_r=0 2. Data on ObamaCare : Affordable Care Act, Health Insurance Marketplace Unbiased facts about ObamaCare (the Affordable Care Act), health care reform and the health insurance market. http://www.obamacarefacts.com/ 3. Modern Principles: Microeconomics, Second Edition; Tyler Cowen and Alex Tabarrok.1.9 Big Idea Nine: Prices Rise When the Government Prints Too Much Money[Chapter 1];5.1 The Elasticity of Demand [Chapter 5]; 13.1 Market power [Chapter 13]; 13.6 Economies of scale and monopoly regulation [Chapter 13].