Free Market Reform And Affordable Care Act - 1409 Words

There are different reforms being proposed to help fix America’s healthcare system that is dialing many Americans daily. Many Americans are finding themselves unable to pay the hefty sum, it takes to take care of themselves. There are two types of markets that could potentially solve America’s health insurance dilemma. These market reforms are called perfect competition or free market reform, and Affordable Care Act. Free market healthcare reform is proposed solution to healthcare aimed at reducing demand for high cost primary healthcare services, increasing supply in the health care market, and lowering market transaction costs. Utilizing a free market system in healthcare could potentially maximize welfare by vesting health care choices†¦show more content†¦Individual firm’s market share is tiny compared to the other three market powers, such as monopolistic, oligopoly, and pure monopoly. In a perfect competition system the type of products are homogenous, so each competitor would be selling the same product or service. There is also no barrier to entry so firms can enter and exit the market freely without barriers from regulation or cost. Affordable Care Act also known as Obamacare, is a new reform that was signed by President Obama in March 2010 and major provisions went into effect in January 1st, 2014. Obama’s goal with the ACA was that â€Å"the core principle that everybody should have some basic security when it comes to their healthcare.† The ACA’s goal is to extend insurance to more than 30 million American people, by expanding Medicaid and providing federal subsidies to help lower- and middle-income buy private coverages. Another reform that is similar to the ACA is a Single Payer System that is trying to be pushed to fix the problems of the ACA such as eliminating commercial insurance. The market structure of Affordable Care Act and a single payer system is that it is heavily government regulated, unlike a free market based healthcare system. The logic behind this is that monopoly power has allowed hospitals to push up prices without improving quality. With government regulation and control over providers they can make healthcare more affordable by subjecting hospitals to regulatory