Reduction in Healthcare Costs and the PPACA.

In 2010 the Patient Protection and Affordable Care Act (PPACA) was passed by the United States government. The act has been also called by the famous moniker, “ObamaCare”. In expanding healthcare coverage, the act also focuses on reducing health care costs overall. The American Medical Association “believes that reducing the burden of preventable disease is a key strategy to contain health care costs and get the most for our health care dollars. The United States can improve quality of care and reduce the rate of growth in health care costs through large-scale national disease prevention and health promotion efforts designed to reduce the prevalence of chronic disease and poor health status, which lead to unnecessary sickness and higher health costs.” The AMA highlights some measures that the PPACA has enacted in order to hopefully reduce healthcare costs. some of the provisions include the following:

– Development of a national prevention and health promotion program with the the concept of health improvement and education as a main goal.

– Creation of an investment fund for the expansion of prevention and public health programs with a $7 billion investment form 2010-2015.

– Requiring fast food vendors to disclose caloric content of items being sold.

– Allows insurers to create health prevention incentives to covered benificiares with but not limited to discounts.

– Encourages employers to provide wellness programs, insurance discounts for individuals who participate in sponsored wellness programs.

– Increases the availability of grants to small employers and businesses that offer comprehensive workplace wellness programs.

– Incentives to Medicaid and Medicare beneficiaries who complete behavior modification programs.



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