Most of the funding for the PPACA will come from fees levied on pharmaceutical companies and health insurance companies. What will be the economic effects of such fees?

What will be an ideal response?

Pharmaceutical companies will increase the prices of drugs. Insurance companies will increase the premiums of healthcare insurance policies. Companies that, by law, must offer group health insurance policies will pass on the higher costs by charging more for goods and services, by requiring employees to pay greater proportions of their insurance benefits, or by laying off workers.