If Congress doesn’t act to extend the enhanced premium subsidies enacted under the American Rescue Plan Act, millions of Americans may see their health coverage premiums rise next year.
The ARPA subsidies were designed to help people who purchased insurance through the ACA’s exchanges. They helped lower costs for many low-income people who otherwise would have had to pay the full cost of their insurance on their own.
1. It will last for the next decade
The affordable care act is a key piece of legislation that has had a huge impact on health insurance coverage in the United States. It has expanded the number of Americans who have coverage, while also providing crucial consumer protections.
The law protects consumers against many abuses by insurance companies, such as denying coverage to people with preexisting conditions or setting arbitrary annual and lifetime monetary limits on their benefits. In addition, the ACA prohibits insurers from canceling or rescinding coverage for any reason.
It also established state rate reviews to determine the price of coverage. It also required all plans to include a list of essential health benefits, which are critical for preventing illness and managing chronic conditions.
The ACA has helped reduce the national uninsured rate from 15.3 percent in 2010 to 8.5 percent in 2018, and is expected to continue to decline. However, it also has a number of challenges that make its legacy uncertain.
2. It will last for the next two decades
The ACA’s major provisions have helped millions of Americans gain affordable health care coverage. They include the requirement that most insurance companies offer standardized plans, which have a set deductible and out-of-pocket limits and copays or coinsurance.
Those policies must spend at least 80 percent to 85 percent of premium dollars on medical care. This helps make coverage more affordable and ensures that insurers are not spending your premium dollars on overhead, marketing, bonuses or other non-medical costs.
In addition, the ACA sets standards to reduce prescription drug prices. It lays out a process to speed the Food and Drug Administration’s approval of biosimilars, biologic drugs that are similar to branded drugs but cost less.
In addition, the ACA’s rules require insurance companies to offer a number of preventive services like screenings for cancers, heart disease and other conditions, and vaccinations without out-of-pocket charges. These efforts help lower the costs of health care and improve quality.
3. It will last for the next five decades
The Affordable Care Act is a complex and comprehensive law that has changed the way we think about health insurance and our health system. It covers a range of issues, including consumer protections, prevention and wellness, quality and system performance, strengthening the health workforce, and curbing rising costs.
The ACA has also dramatically improved access to affordable coverage for families. In particular, Medicaid expansion has made it possible for low-income Americans to enroll in government health insurance and has helped to reduce racial disparities in both coverage and access to care.
The ACA has also made significant improvements to the payment system for health care providers and insurers by altering Medicare and other federal payments to align them more closely with the cost of providing care. It has also put in place rules that ensure insurance companies spend at least 80 percent of their premium dollars on medical care and quality improvements instead of overhead, advertising and bonuses for executives.
4. It will last for the next ten years
The ACA is likely to remain the law of the land for the next decade. Although it has been a highly contentious and divisive law, most experts agree that it is too entrenched for Congress to undo.
The law has made health insurance more affordable and accessible to millions of Americans, especially those with pre-existing conditions. It has also streamlined eligibility, enrollment and renewal processes for all health care programs, including Medicaid.
It has eliminated lifetime limits and annual caps on coverage, which have been the source of complaints by some insurers and patients. It has also protected consumers’ choices of doctors and their access to emergency care.
The ACA also introduced cost-sharing subsidies, which reduce the out-of-pocket costs for enrollees. However, these subsidies do not have permanent funding in the legislation and are subject to appropriations.
