The Affordable Care Act, otherwise known as “Obama care”, was passed in 2010 and President-elect Trump has stated he plans to repeal and replace this healthcare law which added healthcare coverage to 20 million Americans may lose coverage. Some of the provisions include:

-No copays for preventative care visits

-Insurers cannot deny coverage for those with pre-existing conditions

-Expanded Medicaid in states that have chosen to adopt this policy (Medicaid is insurance for the poor, “expanded” means that Medicaid will be available to anyone with a low income and not just the “deserving poor” – typically pregnant women and young children.)

-An individual mandate (This means you must carry health insurance or pay a fine.)

It was predicted that Obamacare would reduce overall healthcare spending in this U.S.

Assume that President Trump decides to repeal this without a replacement. Predict and explain two macroeconomic effects a repeal of this law would have. Two possible effects to consider are (1) how productivity changes with worker health and (2) how increased federal spending on healthcare affects the economy over time.