By Michael Foster, Big4.com Blogger
PwC has released new commentary of how Barack Obama’s re-election victory will impact the cost of healthcare for businesses in the United States.
The report, available on the company’s website, says that President Obama’s re-election assures that the Affordable Care Act, also known as Obamacare, will remain in place. PwC also notes that the law also “nudges the nation’s health system away from fee-for-service medicine.” While the Act reduces the nation’s deficit over the next decade, according to the Congressional Budget Office and affirmed by PwC, the Big4 firm has also speculated that Obama may be willing to compromise elements of the plan. “The president himself has indicated a willingness to reduce federal health spending, raising the prospect of tighter margins for the industry,” PwC notes on its site.
Additionally, PwC continues to track on its website which states have fully implemented the law and which have expressed opposition. At debate, among other issues, is the health-insurance exchange and expansion of Medicaid, which some states complain will cost them needed revenue but which other states believe will reduce costs for everyone in the long term.
PwC says that the health sector will need to improve the quality of its offerings to remain competitive, and that the new law will shake up the way that the industry functions. “To succeed in the future, the $2.8 trillion health sector must move beyond one-time cost reductions and fundamentally transform the way it operates. Demonstrating real value to purchasers such as employers, government and individual consumers will be critical in an era of financial belt-tightening,” PwC said.