Introduction to the U.S. Healthcare Delivery System: Moral Theory

Introduction to the U.S. Health Care Delivery System
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Moral Theory
In the article, moral hazards form the central problem in the healthcare industry (Mendoza, 2017). Any incentive offered had its financial consequences on another party. As people became insured, demand and consumption of medical facilities started skyrocketing. Due to subsidies and a higher purchasing power, U.S. citizens started overutilizing these resources. This excess demand led to an inefficient allocation of resources and the demand and supply to fall in a disequilibrium. In economic literature, this moral hazard has been treated as a case of information asymmetry. It is due to the uncertainty regarding how the insured will utilize these incentives. The insurer lacks transparency in information and knowledge of the expected actions of the insured. This theory suggests that some portion of the cost incurred by the insurer should be transferred to the insured to incentivize risk and reduce the effect of moral hazard.
My Stance
The author shows mixed reviews about this act, where he is trying to justify the welfare-decreasing consequences by comparing it with the welfare-increasing ones. However, a clear conclusion has not been drawn (Kantarjian, 2016). I believe that the social benefits outweigh the social costs here. ACA might have moral hazards associated with it, but how these are affecting the wellbeing of the people is still ambiguous. The numbers speak for themselves, making it evident that by 2016, an additional twenty million Americans got insurance coverage under the ACA. Moreover, it has slowed down the rise of health-associated costs. Insurance companies are unable to deny coverage to anybody along with eliminating annual coverage limits for a lifetime. Hence, I agree that ACA was an answer to health care accessibility.
My Reflection on ACA’s Role in Improving Patient Care
There has been significant improvement observed since the past decade, and I do believe that ACA will keep on enhancing the standards of patient care. It has been helping families by increasing their disposable incomes. As a result, a boost in demand has been observed. Unemployment has been reduced in the long-term, flourishing the economy and improving the standard of living. The long-term deficit is also reduced, which lays down the foundation for potential growth. Most significantly, the people who were unable to get insurance, now have access to better medical care (Shi & Singh, 2017). Lowered mortality rates have resulted in healthy and productive lifestyles and yielded societal as well as personal benefits. In the long-run, the developments expanded to the corporate life where the employers are now prompted to offer healthcare benefits to attract new employees and retain them.
Suggestions for Donald Trump relating to ACA
Ever Since Tru...