The Affordable Care Act (ACA) has made a huge impact on healthcare delivery system and especially in regard to financial management of healthcare organizations and delivery of high quality healthcare services.
The timeline for the Affordable Care Act continues until 2015. Locate 3–4 updates on the timeline that are related to healthcare finance. Discuss these changes or initiatives. Your discussion should include what is changing and your thoughts on how this will impact healthcare finance now and in the future.
U.S. Department of Health & Human Services. (2011). Timeline of the Affordable Care Act.
Include references. At least 150 words
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Introduction: The Affordable Care Act (ACA) has brought significant changes to the healthcare industry, especially regarding healthcare finance. The ACA’s timeline extends until 2015, and these updates have influenced the financial management of healthcare organizations and delivery of high-quality healthcare services.
One update on the timeline related to healthcare finance is the implementation of the medical loss ratio (MLR) requirement. The MLR requires insurance companies to spend at least 80% of premiums collected on medical expenses and only 20% on administrative costs. This initiative aims to ensure that insurance companies are spending more on patient care. This change benefits patients by lowering their out-of-pocket costs and providing affordable healthcare. However, this could adversely affect insurance companies’ profits and ultimately cause premium hikes.
Another update is the establishment of the Center for Medicare and Medicaid Innovation (CMMI). CMMI aims to enhance health outcomes while reducing healthcare costs. This initiative provides funds for healthcare delivery systems to experiment with innovative models of care that improve patient outcomes and reduce costs. The initiative encourages healthcare providers to be proactive in delivering efficient and effective healthcare, ensuring sustainable healthcare for the future.
Lastly, another significant change is the implementation of the Hospital Value-Based Purchasing (HVBP) program. HVBP incentivizes hospitals to provide high-quality care by reimbursing hospitals based on their performance in various categories such as patient safety, clinical outcomes, and patient experience. This initiative encourages hospitals to prioritize patient-centered care and improve healthcare quality. This change ensures that patients receive better care and leads to increased patient satisfaction.
In conclusion, the updates to the ACA’s timeline related to healthcare finance have significantly impacted the healthcare industry. These changes aim to lower healthcare costs, improve patient outcomes, and prioritize patient-centered care. While some changes may cause temporary negative effects on healthcare finance, the long-term goal is to provide affordable and efficient healthcare to all.
