Post Date: November 20, 2015

Better healthcare services have in the past improved and advanced to the level that is admirable and desirable to majority of the United States citizens. Telemedicine is one of the various ways through which the government has formulated and implemented for convenient and reliable healthcare services. Telemedicine involves the use of the technology and telecommunication to offer healthcare to the community from a distance mainly to bring medical services closer and more convenient. The introduction of Affordable Care Act commonly referred as the Obamacare has complicated the health care provision on the costs and whether it’s beneficial to the community.

According to a study by the National Bureau of Economic Research and the findings as published in the working paper, the majority of the non-poor who were formerly uninsured are worse off. The study was carried out and reviewed according to age, earnings, gender and location and concluded that indeed the ACA is costly to those who were previously uninsured middle-level class and rich. That is mainly because the value of the subsidies is lower and cannot offset the higher insurance premiums payable by the non-poor US residents. Another reason is the fact that they will be required to pay part of the cost whenever they have to see a physician.

Interestingly, the actuarial calculations only seem to have adverse effects on high-income earners as they are worse off than before the Obamacare was introduced. The study mainly focused on the non-poor population who were even eligible for premiums or cost-sharing subsidies but are ineligible for Medicaid. The non-poor uninsured population might prefer not to buy the coverage as they will be better off with minimal subsidies and payment of the penalty for violation of the individual mandate.

The law is contradictory on the way it was designed, and it’s not the fault of the healthcare insurers who now expects the healthy and non-poor majority to sign up so as to remain profitable. That is because when the unhealthy sign-up, they might drive up the claim figures high and that is bad for business in the insurance industry. Additionally, the upsurge in telemedicine options which is more convenient and reliable might make the non-poor population decide on staying uninsured and pay the penalties which are deemed as cheap. That will enable them to enjoy telemedicine services at cheaper cost instead of pricey ACA coverage that leaves them in a worse off situation.