The Patient Protection and Affordable Care Act (PPACA), a United States public health policy, became law on 23rd march, 2010 (Daemmrich & Mohanty, 2014). It provides all the insurance holders with full access to advanced health coverage from birth through their retirement. The prime aim to rationalize such healthcare delivery system is to realign the public healthcare with private one. the goal of a health insurance business is to deliver operative health insurance coverage, however it also need to work as a business firm to compete with its counterparts within the healthcare delivery system (Americanprogress.org, 2017). There is a chance to compete with other insurance companies by providing quality healthcare with low insurance premiums. This will be possible if company provide rebates to large group of employers so that their number of insurance holders increases rapidly. Hence, having huge number of customer is the only strategy to overcome the lowered amount of premiums for healthcare insurance companies.
The current strategy that US government uses to ration healthcare among people is reducing the insurance premium. After mandating the PPACA scheme, every person including critically ill patient is covered with health insurance. This factor affects the company positively as among the huge amount of customer, only few will be using their insurance schemes. So reducing costs of premium will not harm their company in the end. According to Obamawhitehouse.archives.gov (2017) till 1st January, 2014 more than19 million people get covered under PPACA scheme and have helped to slower the healthcare rates, within which only 40 percent did actually used their health insurance coverage
Americanprogress.org. (2017). Why We Need the Individual Mandate - Center for American Progress. Center for American Progress. Retrieved 12 September 2017, from https://www.americanprogress.org/issues/healthcare/reports/2010/04/08/7720/why-we-need-the-individual-mandate/
Daemmrich, A., & Mohanty, A. (2014). Healthcare reform in the United States and China: pharmaceutical market implications. Journal of pharmaceutical policy and practice, 7(1), 9.
Obamawhitehouse.archives.gov. (2017). Six Economic Benefits of the Affordable Care Act. whitehouse.gov. Retrieved 12 September 2017, from https://obamawhitehouse.archives.gov/blog/2014/02/06/six-economic-benefits-affordable-care-act