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Future Journal of Social Science

Future Journal of Social Science

Abstract

The Patient Protection & Affordable Care Act referred to as Affordable Care Act (ACA), is a United States (U.S.) federal statute, signed into law by former President Barack Obama in 2010, it is also known as Obamacare. The law has made health insurance more accessible and affordable for millions of Americans, yet many still remain uninsured or struggle with unaffordable coverage. In addition, the Centers for Medicare and Medicaid Services started receiving a significant increase in complaints from consumers who reported being enrolled in Marketplace coverage without their consent, around 5 million people were wrongly enrolled in subsidized ACA coverage for 2024, resulting in fraud, inefficiency and potentially costing federal taxpayers up to $20 billion. Under the second term of President Donald Trump’s Administration, there are huge proposed budget cuts - $880 billion in cuts over a decade - that most likely will impact the federal funding to states in financing Medicaid programs. The Medicaid program, accounting for one-fifth of all healthcare spending in the U.S. Hence, the current Trump’s Administration has proposed provisions to repeal parts of the ACA.

This analysis gives a special focus on the implications of repealing the ACA on the State of California since not all states have expanded their Medicaid programs. A depth analysis on the California case is important because the State of California is considered the fifth largest economy in the world since 2017 and its second priority has been healthcare and the ACA. The objective of this policy paper is to provide three policy alternatives as solutions to the problem of providing sustainable and affordable healthcare for all Americans. Finally, the policy recommendation suggests to modify the ACA to provide access for vulnerable population, versus repealing the ACA as suggested by the current Administration, which mainly targets decreasing the cost of health care.

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