Final answer:
The Affordable Care Act (ACA), also known as Obamacare, includes policies penalizing hospitals for re-admissions of patients with certain diagnoses within 30 days of discharge, to incentivize improved care and reduce healthcare costs.
Step-by-step explanation:
The government policy that addresses penalizing hospitals for re-admissions of clients with certain diagnoses within 30 days of discharge is encompassed within the Patient Protection and Affordable Care Act (ACA or Obamacare). The ACA introduced a program under Medicare aimed at improving the quality of healthcare and reducing hospital readmissions. Hospitals now face financial penalties if patients with specific conditions are readmitted within 30 days of discharge, which is intended to encourage hospitals to ensure that effective and thorough care is provided during the initial stay and that proper follow-up care is planned and carried out. This policy is part of a broader effort to shift away from the traditional fee-for-service model towards value-based care.
Under the ACA, the Hospital Readmissions Reduction Program (HRRP) was created to provide better care for individuals and to bring down healthcare expenditures. This initiative aims to address issues of moral hazard and adverse selection in health insurance markets by incentivizing healthcare providers to improve quality and reduce unnecessary costs.
The Medicare program, a significant example of government involvement in healthcare, is directly affected by the policies outlined in the ACA. Medicaid, the government's health coverage for certain people with low incomes, is also influenced as it often aligns with Medicare's standards and policies.