The Affordable Care Act: Medicaid Expansion

Introduction

The American Rescue Plan Act (ARP) pushed states to broaden Medicaid services. Henceforth, the Medicaid program was expanded under the Affordable Care Act (ACA) in 2014, and since then, there have been effects. For instance, increased insurance coverage, boosted morale, and reduced healthcare costs were the notable outcomes (Guth et al., 2020). Overall, since Medicaid in 2014, the health standards have risen, without it the mortality rate would be high, and a considerable number of people would have been encountering poor health.

Coverage Effects

Accessibility to Care

One of the critical objectives of Medicaid expansion is to boost the number of low-income individuals with health insurance. Through enhanced access to care and utilization, Medicaid extensions under the Affordable Care Act have been effective in providing coverage for low-income people. As of July 2020, the Medicaid and CHIP Payment Access Commission determined that membership in expansion states rose by 15.9 million, or 41.7 percent, from pre-expansion rates (Guth et al., 2020). Additionally, Medicaid expansion has contributed to increased coverage continuity (The effects of earlier Medicaid, 2022). Furthermore, Medicaid expansion has decreased insurance disruptions by 4.3 percent (The effects of earlier Medicaid, 2022). This decline in interruptions of coverage has been much more evident among perinatal mothers. In critical thinking tools of purpose, it can be deduced that the increase alleviated since most patients had no excuse but all favorable reasons to attend medical facilities and seek better healthcare.

Effect on Cost

Influence on the Finances of the States

In addition to these health-related benefits among persons with lower incomes, the Affordable Care Act’s Medicaid reforms did not lead to a spike in the net amount that states spent on Medicaid. Moreover, it did not lead to a reduction in expenditure in any other area. This is due to the fact that Medicaid advancement led to state savings by balancing state expenditures in other areas, such as mental health care, crime, the system of criminal justice, and the uninsured care expenses incurred by hospitals and clinics (The effects of earlier Medicaid, 2022). Critically thinking before states enacted such ambitious frameworks, they had to conduct rethought research and apply evidence-based data and information to provide quality medical without incurring excessive losses.

Effects on Morale

ACA is connected with greater healthcare access and use, better health outcomes, and decreased mortality. In addition to extending insurance access and the resulting advances in medical performance, some of these advantages relate to a change in consumer budget settings example, an income effect. Reducing health care expenditures from one’s savings, specifically shifting from uncovered to insured, as a result of a state Medicaid expansion, alleviates the budgetary restrictions of impacted low-income families. Thus, positive externalities to nonhealthy sectors have shown a drop in homelessness rates but no adjustment in requests for social security income; hence it has created a sense of morale in most people.

In essence, this improves the available income of persons who receive health insurance, allowing them to satisfy other expenditure requirements. Furthermore, increasing insurance coverage enhances contacts with practitioners with boosted morale; thus, impacts may occur through health advice or training resources that promote healthy habits. This can be reinforced by critical thinking discipline in that morales were positively impacted since there was fair mind between the patients and caregivers since everyone felt appreciated. As a result, patients and caregivers could draw positive conclusions about healthcare access.

Conclusion

The discussion demonstrates why expanding Medicaid is beneficial to both insurance coverage and the general public. The advantages of expanding Medicaid far exceed the associated expenses. For instance, it is economical, increases accessibility, and boosts patients’ and workers’ morale. Importantly, the extension of Medicaid improves the beneficiaries’ financial prospects and delivers long-term advantages for everyone that will continue to accrue for future generations. This is supported by the assessment process of making a decision based on desired medical outcomes.

References

Guth, M., Garfield, M., & Rudowitz, R. (2020) The effects of Medicaid expansion under the ACA: Studies from January 2014 to January 2020 – Report. KFF. Web.

The effects of earlier Medicaid expansions: A literature review | CEA | The White House. (2022). The White House. Web.