The Patient Protection and Affordable Care Act (ACA) is a law designed to expand access to affordable health insurance while also improving healthcare delivery systems.
The Affordable Care Act’s goals of reducing our long-term deficit, lowering healthcare costs, and stimulating economic growth have not yet been fulfilled in full. Unfortunately, several goals of the ACA remain unfulfilled.
1. It is a tax
The Affordable Care Act was intended to make healthcare more accessible for all Americans by offering guaranteed-issue coverage without preexisting conditions, premium tax credits that reduce premium costs, and supporting medical care delivery that reduces costs.
The law also introduced a tax penalty for individuals and employers that fail to provide adequate health coverage, known as “employer mandate”.
Obamacare is an intricate piece of legislation passed by Congress and signed into law by President Barack Obama in 2010. Although its provisions embodied many Republican ideas for revamping U.S. health care system, its critics quickly coined it “Obamacare”.
2. It is a mandate
The Affordable Care Act did a lot of things well, but perhaps its greatest accomplishment was mandating health insurance purchase by nearly everyone in America. Its most noticeable benefit was ending an embarrassing percentage of uninsured Americans while saving billions on healthcare costs. While its implementation initially caused issues for some individuals and institutions, over time all its kinks have been worked out and now exist fully thanks in part to President Obama and some smart politicians.
3. It is a penalty
The Patient Protection and Affordable Care Act, commonly known as Obamacare, was passed into law to make health care more affordable for people who can’t afford it. Individuals and families must either obtain coverage or face tax penalties.
It focuses on three primary objectives: reform of the private insurance market, expansion of Medicaid to those whose income falls within 133% of poverty line, and altering medical decision-making processes. All three goals rely on private decisions instead of government regulation – yet may still have some restrictions and constraints.
4. It is a subsidy
Obamacare provides greater access to health coverage while offering tax credits that assist lower-income individuals in covering premium costs. These tax credits have contributed significantly to Obamacare enrollment growth over recent years.
Subsidies are available to individuals whose income falls between 100% and 400% of the federal poverty level, providing financial assistance that reduces premium costs through exchanges or agents. Individuals eligible for subsidies can purchase coverage either directly through an exchange or agent and take advantage of financial assistance that helps bring their premium costs down significantly.
5. It is a mandate
The Affordable Care Act is intended to assist people with preexisting conditions in obtaining health insurance and to prevent insurers from denying coverage or charging higher premiums for policies they purchase. It also helps limit healthcare spending growth.
One of the more contentious aspects of the Affordable Care Act was its individual mandate, requiring individuals to have health insurance or pay a tax penalty. This provision was challenged and eventually upheld by the Supreme Court; however, in December 2017, Republicans passed the Tax Cuts and Jobs Act that removed this penalty for Americans without health coverage.
6. It is a mandate for individuals
The Affordable Care Act’s (ACA) Individual Mandate was meant to encourage Americans to purchase health insurance coverage. Noncompliance resulted in penalties being assessed on your state or federal tax return.
Health reform was initially seen as an attempt to expand coverage and help control costs by encouraging healthier individuals to enroll, however many saw it as a threat to consumer independence and opposed its implementation.
7. It is a mandate for businesses
Obamacare requires businesses with 50 or more full-time equivalent employees (FTE) to offer minimum essential health coverage to both workers and dependents, even if they already have other insurance. Penalties apply if this requirement is violated.
Subsidies can help people afford insurance, but not every family can access them; the right combination between subsidies and mandates depends on who should shoulder the costs of coverage.
