Affordable Care Act (ACA)
Leave a Comment / By Marketing / October 17, 2023
The Affordable Care Act (ACA) is known as Obama care. It is a complete healthcare reform law legislated in the United States back in 2010. It was signed into law by US President Barack Obama. The aim of expanding access to affordable and quality healthcare for all citizens. The ACA introduced several noteworthy changes to the healthcare system. It include insurance reforms, coverage expansions, and the creation of new consumer protections.
One of the vital goals of the Affordable care act was to increase the number of Americans with health insurance coverage. To achieve this, the law established a state-based insurance marketplace. It is known as the Health Insurance Marketplace or Exchange. The Marketplace allows individuals and small businesses to compare and buy health insurance plans from private companies. It provides a platform for consumers to access a range of coverage options. And potentially qualify for subsidies based on their income level.
Some key provisions of the Affordable Care Act
- Health Insurance market
- Individual mandate
- Subsidies and Tax Credits
- Medicaid Expansion
- Essential Health Benefits
- Pre-existing conditions
Now we will get into details of each of above state provisions in the ACA act. Let’s have a detail overview.
Individual Mandate
The ACA required most individuals to have health insurance coverage or pay a penalty. Although this requirement was effectively eliminated back in 2019.
Health Insurance Marketplace
The law established online marketplaces. These marketplaces are also known as exchanges. Where individuals and small businesses can shop for and buy health insurance plans. These marketplaces offer a wide range of private health insurance options with different coverage levels and costs.
Subsidies and Tax Credits
The ACA provided subsidies and tax credits to help lower-income individuals and families to afford health insurance premiums. These subsidies are based on income. It can significantly reduce the cost of insurance coverage.
Medicaid Expansion
The ACA expanded eligibility for Medicaid. A government health insurance program for low-income individuals and families. The expansion allowed more people to qualify for Medicaid coverage in participating states.
Essential Health Benefits
The law mandated that health insurance plans cover a set of essential health benefits. It include preventive care, hospitalization, prescription drugs, and maternity care. This requirement aimed to ensure that insurance coverage provided comprehensive benefits.
Pre-existing Conditions
The ACA banned insurance companies from denying coverage or charge higher premiums based on pre-existing conditions. This provision intended to protect individuals with pre-existing medical conditions from being denied coverage. And also deny facing excessive cost.
The Affordable Care Act had a major impact on the United States healthcare system and helped millions of Americans gain access to health insurance coverage. However, it has also been a subject of political debate and has undergone changes since its presentation.