HEALTH CARE REFORM ACT 2010

Health Care Reform Act 2010

Health Care Reform Act 2010

Introduction

This paper focuses on the Health Care Reform Act 2010 and future conclusions of HR 3590 -Health Care Reform Act currently enacted by Congress. Over time, the healthcare restructure account is anticipated to have a affirmative influence on the pharmaceutical businesses, as the treatment of wellbeing protection rises over the US community, therefore expanding demand for their goods (Sheryl, 2010).  However, this is not anticipated to arrive on-stream until not less than 2014. Although the healthcare restructure account was only passed at the end of March numerous pharmaceutical businesses have modified their 2010 economic expectation below - and the accuse has been solidly put on the landing of the new legislation (Sheryl, 2010).

Analaysis

A large US based pharma, Merck, anticipates that healthcare reform will adversely impact 2010 revenues by $170 million, rising to $300 - 350 million in 2011. The world's largest pharmaceutical company, Johnson & Johnson, estimates that the impact from the legislation will reduce sales by $400 - $500 million for the year, which represents less than 1% of 2009 turnover. Due to Johnson & Johnson's diversified nature of the business, the impact is not as significant as in some of its competitors. Whilst these three businesses reflect what is happening in the larger manufacturers, it demonstrates what is happening across the pharmaceutical industry. The large companies appear to be able to accommodate the loss in revenue, but how the smaller companies will cope with the reduction in revenue remains to be seen. At the heart of the healthcare reform bill lies Obama's vision of the role comparative effectiveness will play in sculpting the landscape of the future healthcare markets. The financial losses discussed in this article clearly demonstrate the critical importance of comparative effectiveness across the board. This concept is not something that can be dismissed and swept under the carpet! All players in the healthcare industry - whether they be the drug suppliers, the healthcare providers or the insurers - must have a firm grasp on the basic concepts and language of comparative effectiveness as it WILL influence every pricing, marketing and purchasing decision the company makes. And it is not enough that only a selected few individuals within businesses hold this knowledge, cross-company training is vital (West, 2006).

Many readers have asked how the Health Care Reform Act can provide health care insurance for another 32 million Americans, but still reduce the deficit by $143 billion? Well, it's not voodoo or magic, but it does need some explaining. Basically, most of the additional revenue comes out of the pockets of hospitals, drug companies and those making over $200,000 a year.

Share Your Opinion - Should Health Care Be Reformed? For example, every year, Medicare agrees on certain payment rates for covered services to health care providers. These annual updates will be reduced by 21%, saving $196 billion. Hospital groups agreed to give up their portion, $155 billion, because they expect to make more than that - ...