Obamacare Explained Simple

Obamacare Explained Simple

obamacare explained simple

Obamacare refers to The Patient Protection and Affordable Care Act of 2010. This law has revolutionized how individuals access healthcare services.

It allows tens of millions of Americans to gain health coverage for the first time and moderates healthcare cost inflation. Furthermore, it includes rights and consumer protections.

1. It’s a law

Obamacare, also known as the Patient Protection and Affordable Care Act, was passed by Congress and signed into law by President Barack Obama in 2010. It’s a complex piece of legislation which impacts millions of American’s access to healthcare insurance coverage.

This law establishes government-run marketplaces where Americans can purchase private health insurance and get assistance paying for it with subsidies. Additionally, it encourages States to expand Medicaid coverage for low-income families; and protects consumers by making sure health insurers cannot discriminate against people with preexisting conditions and by permitting young adults up to age 26 to remain on their parents’ plans.

Additionally, this plan cuts costs by reducing the deficit, improving government programs like Medicare and forcing large employers to provide insurance or pay a penalty fee. Furthermore, insurance plans sold both on and off of marketplace must include new benefits, rights and protections that meet requirements set forth under Obamacare.

2. It’s a tax

Before the Affordable Care Act was implemented, health insurance was often difficult to come by. Insurance companies might deny coverage due to preexisting conditions or charge exorbitant premiums for those with medical issues.

The Affordable Care Act has changed this, providing more cost-effective options to people with preexisting medical issues via health exchanges. Low income individuals may qualify for premium tax credits that help offset monthly premium costs.

The Affordable Care Act originally included penalties for individuals who did not purchase health insurance – known as an individual mandate – however this has since been repealed in most states. Still, the ACA remains an effective tool in shaping how Americans pay for healthcare; here’s why.

3. It’s a mandate

Original legislation of the Affordable Care Act included an individual mandate which required most Americans to buy health insurance coverage or face penalties; this provision has since been repealed, although certain requirements of ACA still must be fulfilled.

Supporters of the Affordable Care Act contend that mandating insurance helps keep premiums affordable by increasing the number of healthy people contributing money into the risk pool and thus increasing chances there will be enough funds available to cover claims from people with expensive medical conditions.

However, this argument overlooks the reality that there are many Americans unable to afford health plans offered under the ACA and thus needs other consumer protections such as allowing adults under 25 to stay on their parents’ plans or offering discounts to those with complex medical histories.

4. It’s a marketplace

Obamacare provides individuals with access to various health insurance plans. Furthermore, subsidies help lower income individuals afford their premiums.

Individuals and families eligible for Affordable Care Act coverage can enroll in marketplace plans during open enrollment or special enrollment periods due to specific life events. Furthermore, this law prevents insurers from denying coverage based on preexisting conditions while allowing parents to keep their child on their plan until age 26.

The Affordable Care Act (ACA) has greatly decreased the uninsured in America while simultaneously increasing marketplace participation and decreasing costs for consumers. Medicare coverage is provided by government entities; by contrast, ACA coverage is provided by private insurers competing in the marketplace to secure business. All ACA-compliant plans must also provide certain essential benefits and limit out-of-pocket spending costs.

5. It’s a penalty

An essential aspect of the Affordable Care Act was its individual mandate, which required people to enroll in health insurance or face penalties. Its goal was to ensure that healthy and unhealthy individuals alike contributed equally towards keeping insurance costs affordable for everyone.

Beginning in 2014, the federal individual mandate required most people to either purchase qualifying coverage or face a tax penalty when filing taxes. Exemptions included those who could not afford it, religious beliefs, American Indians and those living abroad for at least a year.

As of January 2019, federal penalties for not having insurance have been eliminated by tax reform enacted in 2017. Nonetheless, several states (such as California) continue to enforce an individual mandate requirement.

You May Also Like

About the Author: Raymond Donovan