The Affordable Care Act, commonly known as Obamacare, was signed into law on March 23 by President Barack Obama as part of his signature legislation package for 2010.
The Affordable Care Act has simplified and made more accessible health insurance, while remaining more cost-effective for millions of Americans. The American Medical Association wants to make sure that this legislation remains beneficial to physicians as well as patients.
1. The Affordable Care Act made it easier for people to get health insurance.
The Affordable Care Act (ACA) made it easier for millions of Americans to gain health coverage, by expanding Medicaid eligibility, creating the Health Insurance Marketplace, and prohibiting insurance companies from discriminating against people with preexisting conditions.
The Affordable Care Act mandated all private health plans to offer essential benefits, such as maternity care, prescription drugs and mental health coverage at an affordable price. These benefits assist those with chronic illnesses by providing access to necessary treatment at an affordable price.
Before the Affordable Care Act was implemented, many individuals who struggled to secure coverage found a solution in the Marketplace where they qualified for premium tax credits and cost-sharing reductions – aid that helped pay for coverage on the individual market which can be expensive depending on age, income and location.
2. It lowered the prices of health insurance.
Before the Affordable Care Act came into force, health insurance companies could charge Americans much higher premiums for their plans – leaving many Americans unable to afford coverage they required until it became necessary and forcing them to wait until illness had set in before seeking help.
The Affordable Care Act changed that. By eliminating lifetime limits on how much health care could be covered by an insurer, millions of Americans were now able to purchase more cost-effective individual policies.
Insurance companies were also mandated to make their products more transparent and fair by setting minimum standards for how they priced coverage, providing customers with a better idea of their premium’s worth. These requirements apply across individual, small group and large group markets and give customers an understanding of what their premiums cover.
3. It lowered the cost of prescription drugs.
Drug prices have skyrocketed and many individuals who depend on them are finding it increasingly difficult to afford them, even though these medications are essential to health care and should not place undue financial strain on anyone.
The Affordable Care Act is taking steps to lower prescription drug costs for all. By permitting Medicare to negotiate these prices directly with manufacturers, they’re encouraging innovation and finding new ways of providing medicines to patients.
The Affordable Care Act has also helped bring down drug costs by limiting out-of-pocket spending for Medicare Part D patients, thus smoothing out how much is spent on medications and helping avoid incurring medical debt.
The Affordable Care Act also mandates that drug makers set list prices for new medications when they come onto the market, with these prices adjusted annually to take account of inflation and a 5% price penalty – increasing competition while decreasing research and development expenses.
4. It lowered the cost of mental health care.
The Affordable Care Act required all individual and small group plans to cover ten essential health benefits, including mental health care. Furthermore, Medicaid expanded their mental health benefit coverage to include addiction treatment.
These coverage requirements have helped reduce mental health care costs by making it simpler for consumers to obtain coverage, including plans sold through the Affordable Care Act marketplace and those provided by employers.
Insurance companies must also limit out-of-pocket spending on mental health care and prohibit limitations on annual or lifetime coverage for this service, helping consumers avoid unexpected medical bills.
The Affordable Care Act’s Medicaid expansion greatly increased access to behavioral health services for low-income individuals, due to higher provider participation and improved reimbursement rates for providers. Still, further work needs to be done in ensuring that behavioral health services, particularly specialty mental health services, are adequately reimbursed.
