Effects of Healthcare Reform on Stakeholders | Report

Running head: HEALTH CARE 1
Effects of healthcare reform on stakeholders
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HEALTH CARE 2
Effects of healthcare reform on stakeholders
The national and world economies on a universal scale center their conversations concerning the
importance of universal health. Affordable Care Act impacts a range of players in the healthcare
industry. Affordable care reform is significant for people since it requires worldwide healthcare
coverage. The internal healthcare system requires key stakeholders since they play a vital role in
the system. Stakeholders have a responsibility in passing legislation and rules concerning the
healthcare system. The organizational healthcare stakeholders include board members,
administration, medical practitioners, and leaders of the community who work in hospitals and
nursing homes daily. The healthcare system is composed of business institutions such as
insurance and pharmaceutical companies. The main stakeholders in the healthcare system are
patients, insurance companies, pharmaceutical firms, physicians, employers, and the
government. The Affordable Care Act has both positively and negatively affected the budgetry
consequences of the clients.
Difference between stakeholders impacted by the ACA
Insurance firms are responsible for the provision of healthcare plans, either directly or indirectly,
to customers through government agencies and their clients, while pharmaceutical companies are
responsible for the production and distribution of medicines to hospitals and other regulated
outlets (Manchikanti, et.al,2011). Pharmaceutical firms also have a responsibility to market
drugs to patients who have prescriptions from doctors. They receive a salary through government
pharmaceutical benefits scheme or cash. Employers provide health insurance benefits to
employees based on an employee benefit. The primary healthcare providers are doctors. The
American government ensures its people access affordable and quality healthcare.

HEALTH CARE 3
The financial impact of ACA on stakeholders
ACA has dramatically impacted the financial affairs of the participating stakeholders. The health
insurance rates rely on provisions of the ACA and the effect on the tax code in combination with
other laws like Medicaid expansion.
Insurance firms
Health insurance firms endorse ACA financial pressures that profoundly affect the cash flow of
the industry. Regulatory restrictions are imposed on insurance companies by ACA in order to
strategize the fundamental operations of the company. Insurance companies have to adjust costs
to changes hence lose profits. High corporate tax responsibilities required by ACA profoundly
affect the profits of the corporation (Beronio, Skopec and Glied, 2014). Due to pre-existing
conditions, insurers cannot deny American coverage. ACA has provisions that affect the
financial affairs of the corporation negatively, where lifetime benefits for customers are not
allowed. ACA ensures insurance undertakings pay higher rates of premiums for consumers with
low-profit margins (Horev and Babad, 2005). Another aspect influenced by insurance budgets is
the Medical Loss Ratio (MLR), which consents businesses to have a clear strategy of 80 and 85
percent of the premium on employees and private markets. ACA imposes restrictions to
insurance companies in order to strategize the company’s fundamental operations.
Health care providers
Medical providers benefit directly incase of ACA cashflow. They are the primary beneficiaries
of ACA since money is available in both private and public medical facilities for medical
services. American Hospital Association supports the ACA because of its financial benefits of
the Regulation. ACA healthcare providers maximized financial benefits, which is as a result of
ensuring that all medical custody residents minimize associated costs of handling non-insured