Was the Affordable Care Act a Good Policy?

Was the Affordable Care Act a Good Policy?

Was the affordable care act a good policy

Before the ACA, many people were denied health coverage due to preexisting conditions. Now it is illegal for insurance companies to decline coverage or charge more for people who suffer from medical problems.

Law required insurers to allocate at least 80% of premium dollars towards medical care and quality improvements, helping reduce costs while making sure your health care dollars were spent efficiently.


Health care costs have long been at the center of debate about the Affordable Care Act (ACA), yet focusing solely on exchanges and Medicaid expansion has obscured one of its greatest legacies: its success at managing rapidly rising health care expenses.

A national actuary predicted in 2010 that Obamacare would reduce annual premiums by $2,500 and overall health spending by $200 billion annually, but data show otherwise. National health expenditures rose an average of 5.6 percent annually between 2003 and 2010, and 4.4 percent annually from 2010-2018.

This means that the Affordable Care Act reduced costs for people with higher incomes while increasing them for people with lower incomes – an extremely important distinction as it allows us to measure its impact on health insurance coverage and cost control as well as its broader effects on the economy.


The Affordable Care Act (ACA) offers coverage to tens of millions of Americans through Medicaid expansion, health insurance marketplaces and small business tax credits. These programs are improving quality care while making it more affordable.

Law requires insurers to offer preventive benefits, such as cancer screenings and HIV testing for young adults. These benefits have helped more than 137 million individuals get better preventive care while saving them money and decreasing medical costs.

The Affordable Care Act also permits most young adults to remain on their parents’ health coverage until age 26; this has already proven beneficial to over 5.7 million individuals. Furthermore, employers who employ 30 or more hours each week must offer affordable health coverage through what’s known as an employer mandate requirement.

Preexisting Conditions

The Affordable Care Act (ACA) makes it illegal for insurance companies to discriminate against people with preexisting conditions such as cancer, heart disease or diabetes by denying coverage, increasing premiums or mandating waiting periods for coverage. This applies to illnesses like cancer, heart disease or diabetes.

Under the Affordable Care Act (ACA), people with preexisting conditions could face higher premiums or be denied coverage altogether; this was particularly prevalent among women.

Without the Affordable Care Act (ACA), Americans would lose all the protections currently provided for preexisting conditions.

Prior to the ACA, Mike was denied coverage due to asthma; thanks to it he was able to enroll in an employer-sponsored health plan and his asthma was fully covered under its policy.


The Affordable Care Act introduced taxes on high-income families, employers and insurers in order to help pay for its expansion of health coverage. These new taxes include the so-called Cadillac tax on high cost employer sponsored health plans as well as excise taxes levied against pharmaceutical companies and medical devices; additionally there were increased limitations placed upon income tax deductions for medical expenses.

Wealthier individuals also paid an annual Medicare tax of 0.9 percent for households earning $250,000 or more that is unadjusted for inflation, in addition to an investment tax rate of 3.8% on modified adjusted gross income exceeding $200k or $250k each year as stipulated by the Affordable Care Act (ACA).

If the Affordable Care Act were struck down, its repeal would also bring with it an end to health insurance marketplaces and premium tax credits that help millions of Americans afford individual market coverage, while nationwide protections for preexisting conditions would come to an end as well. Loss of these benefits would leave over 20 million fewer Americans insured while also incurring higher costs to individuals and families alike.

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About the Author: Raymond Donovan