According to an article in “The New York Times”, insurers claim that the website for affordable healthcare is still flawed. This article greatly magnify a number of economic applications. The affordable healthcare act in itself is a rather broad topic that involves the intervention of the government to renew healthcare laws. One segment of the law requires all Americans to have some sort of insurance, which in turn effect the demand and supply of healthcare. By the government inventing a new health insurance, this causes the demand for healthcare to become more elastic. Insurers claim the website is flawed and different users become frustrated with the process which is fully computerized. A number of users also say that it has improved a great deal since it was invented and running now in 36 states.
Government ownership of affordable healthcare is a potential solutions the natural monopoly on healthcare, however without the discipline of competition or profit motive, there is a tendency for the government to over-regulate and become inefficient. The problem here is the lack of technological innovation, which will be more user friendly and encourage more insurers to be satisfied and receive the services they sign up for. If the government doesn’t fix this issue quickly, it can decrease their market power, causing people to seek insurance elsewhere. “The insurers are in “an unenviable position,” said Brett Graham, although they don’t have the responsibility or the capability to fix the system, they’re reliant on it.” The website is the main channel for people to buy insurance under the 2010 health care law” (New York Times).
Due to the new healthcare law the demand for health insurance has increased, which could cause more compaction in the insurance industry. As demand increase and prices decrease this causes the market for insurance to be very elastic as users and insurers have more substitutes. Another factor that makes the demand for healthcare more elastic is that it should only cost a small portion of a persons income, and the government also through in an incentive, that they will subsidies the portions of care for qualified personnel who can’t afford to pay full premiums.
The Affordable Care Act, reforms the health insurance industry and the American health care system as a whole. “The law contains over a thousand pages of provisions that give Americans more rights and protections and expand access to affordable quality health care to tens of millions of uninsured” (ObamaCare facts). The affordable healthcare act...