On Bauer Business Focus — A conversation on the effects of the Affordable Care Act with Andrew Schneider, business reporter for KUHF 88.7 FM.
On June 28, 2012, the Supreme Court passed the Affordable Care Act, which will provide healthcare to millions of uninsured Americans. With the act passed, concerns still remain about the new mandate.
Vivian Ho, Baker Institute Chair in Health Economics at Rice, stopped by Bauer Business Focus recently to discuss the effects of the Affordable Care Act.
“Healthcare costs have been rising faster than the rate of inflation for several years and the reason why healthcare costs are out of control is because we reward hospitals and physicians for providing a higher quantity of service, not quality,” Ho said. “What’s being done under the Affordable Care Act is to create reimbursements that reward providers for keeping patients healthy and out of the hospital in the first place.”
As the Affordable Care Act brings many changes to the healthcare industry, those outside the healthcare realm, primarily small business owners, are facing new regulations when it comes to employees.
“The Affordable Care Act will issue penalties on employers, with 50 or more employees, who are not providing health insurance. If individuals purchase their own insurance instead of their employer, the employer is going to bear a penalty of at least $2,000 per person for every employee over the first 30 who doesn’t purchase health insurance.”
Click here to hear the full interview.