Health Care Laws and Regulatory Issues

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Health Care Laws and Regulatory Issues

This paper discusses health care laws and regulatory issues by focusing on the case of Texas vs Azar, which involved a regulatory issue within healthcare. The areas covered in this paper are summary of the case, definition of a law involved in the case, explanation of how and why the law was established, and explanation of the effects of regulatory trends and issues on health care sector.

Summary of the Case

In the case of Texas vs. Azar, an association of attorneys general and 20 Republican governors sought to nullify the Affordable Care Act (ACA) (Rege, 2018). This alliance claimed that the whole law was no longer applicable considering that Congress had eradicated the component of the law that imposed a penalty on individuals, who do not possess health insurance. In December 15, 2019, a federal district court within Texas struck down the ACA in its wholeness, establishing that the 2017 Tax Cuts and Jobs Act (TCJA) rendered the mandate unconstitutional (America Medical Association, 2020). It is vital to note that the TCJA zeroed out the tax fines associated with the individual mandate of ACA. The judge proceeded to conclude that, since the individual authority is vital for the ACA, such a mandate could not be detached from the ACA, which in turn rendered the entire ACA unlawful.

Definition of a Law Involved in the Case

The law involved in the case was the ACA. The ACA refers to a comprehensive health care reform policy enacted in 2010 that provides consumers with premium tax credits or subsidies. These subsidies limit costs for households having incomes between 100 percent and 400 percent of the federal level of poverty.

Explanation of how and why the Law was Established

The ACA was conceived by President Barack Obama, who proposed it as a means of accomplish middle-class tax reduction in health care. The ACA became a significant component of Obama’s campaign in the general election and he signed it into law in 2010 after clinching the presidential seat (Affordable Healthcare California, 2020). The law encountered many barriers, with the ultimate hurdle being cleared in 2012 by the Supreme Court that held most of the Act’s provisions (Affordable Healthcare California, 2020). The National Federation of Independent Business and twenty-six states presented a suit against the ACA in the federal court, opposing the law’s requirement for the expansion of Medicaid and the mandate that people should have insurance or pay fines. Nonetheless, the Supreme Court held that states could not be compelled to cooperate with the expansion of Medicaid, but left other provisions of ACA intact (Affordable Healthcare California, 2020). It is significant to note that the ACA was established to ensure that more individuals access more health insurance coverage within the U.S. Besides, this law was created to improve health insurance and healthcare quality, reduce healthcare spending, and regulate the sector of health insurance in the U.S. 

Explanation of the Effect of Regulatory Trends and Issues on Health Care Sector

Regulatory trends and issues such as the ACA have significant impact on the healthcare sector. These trends and issues contribute significantly to the improvement of healthcare quality and patient safety. In addition, regulatory trends such as the ACA ensure that healthcare coverage is made more secure to individuals having insurance, and affordable healthcare coverage is extended to persons that are uninsured (Vogenberg & Santilli, 2018). As such, regulatory issues and trends in healthcare industry play a vital role in ensuring access to cultural competent and quality care for all U.S. demographics.

In conclusion, this paper has effectively discussed the case of Texas vs Azar, which was associated with a regulatory issue in healthcare, by summarizing the case, defining the law involved in the case, explaining how and why the law was developed, and illustrating the impact of regulatory issues and trends on the sector of healthcare.