The Patient Protection and Affordable Care Act: An Eventual Failure to Make Healthcare Services in the United States Affordable

12 Pages Posted: 10 Dec 2015

Date Written: October 20, 2015

Abstract

The Patient Protection and Affordable Care Act (ACA) was enacted in 2010. While the ACA will achieve some of its goals, the ACA will fail as it pertains to the ACA's aim to make healthcare affordable. In healthcare, as with all other industries where a service is provided, there are two essential elements within every transaction paradigm, selling price and buying price. The selling price is made up of the actual and perceived value of the elements that make up the cost of a service. The buying price is the value of the service as determined by the potential consumer of the said service. To successfully sell a service, the seller of the said service must manage the costs generated from processes associated with the production of the said service. This cost management is done to assist the producer of the said service achieve a selling price that would be acceptable to the potential consumer, for if the potential consumer deems the goods or service being offered to be overpriced, the potential consumer might walk away. While this transaction paradigm exists in almost every industry, when it comes to the American healthcare service industry, this transaction paradigm is none existent. This is because in the United Stated states the role of the consumer is occupied by a third party, and not the patients seeking treatment. The ACA offers no solution to this problem.

Keywords: The Patient Protection and Affordable Care Act, health care policy, health care reform, ACA

Suggested Citation

Von Batten, Karl, The Patient Protection and Affordable Care Act: An Eventual Failure to Make Healthcare Services in the United States Affordable (October 20, 2015). Available at SSRN: https://ssrn.com/abstract=2700986 or http://dx.doi.org/10.2139/ssrn.2700986

Karl Von Batten (Contact Author)

Montague York ( email )

Washington, DC
United States

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