Puerto Rico Economic Pulse ©

September 2013: Health Has Lots of Moving Parts – Part I

Setting the stage for Obamacare in Puerto Rico

The Affordable Care Act of 2010, better known as Obamacare, consists of a set of rules, which represent the biggest change in US health public policy since 1965 when Medicare was created. The main goal of this law is to provide affordable health insurance for all US citizens, including Puerto Rico, and to halt the growth of health care spending for increasing numbers of older Americans in need of health care. Not all the provisions of this law will apply in PR and some analysts forecast it could increase insurance premiums by 15% to 20%, which is clearly against Obamacare goals. Will this law help with health conditions in PR? The island faces several health challenges, such as: an ageing population, outward migration of the younger age groups, high health costs and inflation, a fiscal crisis, high prevalence of chronic conditions, poor personal health behavior, and increasing need of health care professionals. All these issues are challenging PR’s population, policy makers, and health. This issue sets the context for the implementation of Obamacare in PR and to some extent enables readers to pass judgment on the effectiveness of health care expenditures in Puerto Rico.