The Affordable Care Act (ACA, commonly known by its other name Obamacare) may soon face its final test when a federal appeals court reviews a lawsuit challenging its constitutionality. This act seeks to make health insurance more cost-effective while eliminating many unfair practices by insurers.
The Affordable Care Act also ensures that insurers spend at least 80 percent of your premium dollars on medical care and quality improvements or give you a rebate.
1. It’s a scam
The Affordable Care Act is in the hands of a federal court that is reviewing a lawsuit challenging it as unconstitutional. The suit was filed after Republicans passed their tax cut bill with penalties eliminated for those without health coverage – something part of ACA would penalise for. According to this complaint, its removal means all laws associated with it become null and void.
The lawsuit asserts various assertions, but some key facts should be remembered when reviewing these arguments. First of all, one in two Americans has a preexisting condition which cannot be denied or charged more for due to the Affordable Care Act (ACA). Furthermore, over 100 million Americans can access free preventive care such as flu shots and annual checkups through this law; lastly it has also helped reduce medical debt in America significantly.
Considerations should also be given to the long-term costs associated with the Affordable Care Act. As part of its implementation, three “global budgets” limiting total Medicare spending, Medicaid hospital spending and federal tax credits growth on health insurance exchanges were set into motion; as these global budgets took effect, health insurance costs are projected to increase no more than 1% each year; much lower than previous increases in healthcare premiums.
2. It’s too expensive
The Affordable Care Act makes health care more accessible and affordable for low-income Americans by offering tax credits, lowering insurance premiums in workplace plans and offering financial aid for preexisting condition coverage. In addition, Medicare Part D’s “Donut Hole” gradually closed with increased accountability measures for insurers.
Individually, the Affordable Care Act (ACA) mandates that plans comply with new rules outlined by 10 essential benefits; plans sold on an exchange must also abide by these standards. As a result, so-called “skinny” health plans that offer limited benefits at very low premiums have emerged.
Critics have claimed that these changes may cause “sticker shock” for individuals purchasing plans on their own; however, according to actual 2014 data these critics are exaggerating premium increases; furthermore a study by Amanda Kowalski of Brookings Institution showed that, after taking into account enrollment-weighted average premium rates and the fact that most exchange plan buyers receive subsidies, ACA enrollment-weighted premiums have only increased between 14%-24% since reform took effect.
3. It’s too complicated
The Affordable Care Act contains many complex provisions that affect individuals, families, employers, insurers and tax-exempt organizations. Additionally, it contains rules and responsibilities for states, including mandates to expand Medicaid programs to more low-income residents.
Law has created much bureaucracy, as well as new government jobs for paperpushers, accountants and lawyers. Furthermore, higher than anticipated costs to insurers have caused premiums in some areas to increase and may soon result in premium increases for everyone involved.
Some critics of the Affordable Care Act (ACA) have claimed it will lead to increased use of emergency rooms and other health facilities due to free access to healthcare, but studies have demonstrated that emergency room visits have not increased since passage of ACA.
Trump administration officials have hinted at partial repeal of Obamacare in an effort to mitigate its damage. Such an option would leave in place rules allowing insurers to sell plans with preexisting conditions while creating an unelected board of 15 bureaucrats who will ration Medicare benefits for seniors.
4. It’s too intrusive
In reality, the Affordable Care Act isn’t particularly intrusive. While its individual mandate requires most Americans to acquire health insurance or face penalties, exemptions exist allowing for exceptions for some. Furthermore, medical underwriting restrictions protect vulnerable groups while regulations guarantee that anyone making less than four times poverty line won’t spend more than 9.69% of their income on typical plans in exchanges.
Fear-mongering stories about “sticker shock” are unfounded; Wharton School professor Mark Pauly states that comparing premiums today with those before ACA is like “comparing apples and oranges”. Additionally, most exchange plan buyers qualify for subsidies which lower costs significantly.
Striking down the Affordable Care Act would do more harm than good. Nature abhors a vacuum, and in this instance there is plenty of information regarding what has actually taken place and what might occur.
