The Patient Protection and Affordable Care Act
Name
Institution
Recently, President Barrack Obama signed the law of Patient protection and Affordable Care Act (PPACA) on March 23, 2010. The law focused on improvement in private health insurance market that entails providing better coverage; and improving the prescription of drug coverage in the medical field. For the past years, the law has been challenged concerning its constitutionality. Although there have been controversial debate on whether the law should be approved or not, majority of democrats voted for the law. Reports have indicated that, two hundred and nineteen of democrats voted against the bill while two hundred and fifty three democrats voted for it. As a result, it became part of the law. According to Crane (2009), the bill entails some changes in insurance companies in that; they no longer have to deny coverage for pre-existing conditions, escalating patient eligibility for Medicaid, more resources in medical research and tax incentives for businesses that offer benefits of health insurance among others. While most people agree on the fact that Patient protection and Affordable Care Act are good, many people are upset for the fact that it was approved. This is because; people will be required to pay extra money for the new programs. It appears that, the new programs will be paid by many taxes along with fees from American people. In this regard, this paper seeks to examine the effect that this law has in the market.
The Effect of the Law in the Market-Driven and Non-Market Driven Decisions
The bill will have an impact on the major elements related to insurance. Among the predicted changes in the insurance market, four will have influence on the future of medical claims, insurance pool, Premiums and extension. Under guaranteed issue, it will create a risk for people to buy insurance only when they need it. In addition, it will increase the average prices for an individual market in insurance. The law will affect insurance rating changes, which will increase premiums for, healthier and younger people while reducing premiums for less healthy and older people.
Additionally, the law will accomplish a transformation of health insurance within the United States by a shared responsibility. Logical insurance markets modification will eliminate all discriminatory practices that include the pre-existing condition exclusions. Achieving the changes without increasing the health insurance premiums will mean that all Americans will be forced to be part of the system by paying taxes. In conjunction with this, law will have effect on the business market as a whole. This is because, the employers that have more than two hundred years will be required to enroll full time employment employees within the coverage. As a result, many employers will end up preferring part time employees in that, full time employees will be hard to maintain.
Because of the law creating a community first choice, many people will have medical aid benefited created which will offer help disabilities and mentally retarded. With this in mind, many people with disabilities will opt for community based attendant services. This will directly affect many hospitals in that; there will be a common sharing market. Many patients would tend top shift to the new optional medical services been provided for (Pipes, 2010).
As said earlier, the act will implement new programs that would help in development of health clinics, health care prevention and availability of medical coverage without payment or deductibles. The American citizens will be required to pay for such expenses although without realizing. The money will be mostly deducted from taxes and VAT. The government will be forced increase VAT and taxes to acquire money from a citizen that would in turn cater for the needs discussed earlier. With this in mind, one requires strategic plans to fit in marketing decisions as discussed below.
My Strategic plan in marketing decisions to include PPACA law
On my point of view, I will work on various strategic pans in marketing to include PPACA. I will develop effective sales and marketing in order to enhance awareness for our products to clients. As a result, our business will acquire enough resources to cope with conditions within PPACA law. We will use part of our profits to pay health insurance since our business has more that fifty employees. Because the bill would have effect on national spending, I will introduce different policies that would in return attract different clients based on their earnings. In conjunction with this, our prices will be relatively fare to attract customers that have different income.
Target Audience
Our company will aim to target the individuals with low and high income. This will be achieved by having different pricing policies, which would not hinder any individual affected by PPACA law. For the sake of this, we will demonstrate our demographical information in a way that, the aged will acquire cheaper medical services thus allowing them to shift to the services offered by the government.
Effect on five environmental forces
The PPACA law will affect the five environmental forces in several ways. The five environmental forces include Competition, Social, Technology, Regulatory and economic. This will lead to consumers changing their wants and needs because life will be too expensive due to increment in taxes and VAT. This will directly affect business operators due to the fact that, many individuals income would not cater for most items sold in the market. Secondly, there will be changes in technology due to expand in Medicaid eligibility. Additionally, there will be the establishment of national voluntary insurance program. This implies that, there will be an increase in technology to meet such improvement. In this regard, the services will be so much available thus affecting the market place. Because of making medical services available, most private hospitals will end up not being successful in business because many would prefer free medical services or less expensive (Greenwald, 2010).
As said earlier, the government will be required to set high regulations in business in order to raise money that would accommodate such improvement. This implies that, businesses will be required to spend a lot of money in regulation, which will include overhanging in terms of licenses among others. Businesses will end spending extra expenses, which in return will minimize their profits. In conclusion, this will also affect their pricing because they will be forced to increase their prices for the sake of not making complete loss (Foster, 2010).
References
Crane, F.G. (2009). Marketing for Entrepreneurs: Concepts and Applications for New Ventures. New York: Sage Publisher
Foster, R.S. (2010). Estimated Financial Effects of the Patient Protection and Affordable Care Act,ż as Passed by the U. S. Senate on December 24 2009. New York: Diane Publishing
Greenwald, P. H. (2010). Health Care in the United States: Organization, Management, and Policy. New York: John Wiley and Sons Publisher
Pipes, S.C. (2010). The Truth about Obamacare. Washington DC: Regnery Gateway Publisher
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