What Are the Pros and Cons of the Affordable Care Act?

What Are the Pros and Cons of the Affordable Care Act?

What are the pros and cons of the affordable care act

The Affordable Care Act, more commonly referred to as Obamacare, has drastically transformed the US health insurance market and the way Americans access medical care. It offers protections for preexisting conditions as well as improvements to prescription medication.

Even though the Affordable Care Act offers many positive effects, it has some drawbacks that impact many Americans. Here is a list of its primary pros and cons to help you decide if it is suitable for you.

1. It aims to reduce the number of uninsured

The Affordable Care Act aims to decrease the number of uninsured by expanding Medicaid and offering subsidies for affordable insurance through state-based individual health exchanges. Furthermore, this helps decrease health disparities.

The federal government currently runs individual marketplaces in 34 states and provides tax credits to low-income people who purchase coverage through them. Furthermore, the Affordable Care Act mandates insurance companies provide comparable policies at an equivalent price level with few price variations, limit rate increases and not cancel or exclude preexisting conditions from coverage plans.

The Affordable Care Act has certainly contributed to reducing the rate of uninsured Americans; however, many remain without coverage despite its implementation and facing several court challenges.

2. It requires insurance companies to cover people with preexisting conditions

The Affordable Care Act is clear on this matter: insurance companies must cover all customers regardless of medical history; thus if you have preexisting conditions you’ll be covered from the moment you enroll through either a health insurance marketplace or state health exchange plan.

Insurance carriers cannot refuse you coverage, increase premiums or limit benefits based on preexisting conditions; this provision aims to keep people healthy who cannot afford costly care.

Pre-existing conditions were often the cause of denied coverage or higher premiums before the Affordable Care Act came into play, often impacting both individual and employer-sponsored health plans alike despite many unawareness of such practices. With its advent, however, most plans now conform fully with ACA compliance so you won’t need to worry about your coverage being limited due to pre-existing conditions anymore.

3. It raises premiums for everyone

One major worry among many is that premiums are increasing for everyone, but this doesn’t have to be true.

As the Affordable Care Act was so new at its launch, health insurance premiums were relatively affordable due to limited data on who had signed up yet.

The Affordable Care Act required insurers to cover preexisting conditions and offer other essential benefits, which could have increased premiums further.

But one of the benefits that Affordable Care Act provided to the market was making insurance more accessible for healthy individuals who had been previously uninsured, saving them money on premiums.

Premiums continue to rise since the ACA went into effect, although not at a rate as extreme. They make up less of the total costs than before it became law.

4. It creates a social experiment

Since its passage in 2010, Obamacare, or “Obamacare”, has become the gold standard of health insurance reform. It has benefitted millions of Americans while saving countless lives along its journey. However, the Affordable Care Act isn’t without its own set of flaws. While its myriad benefits remain undeniable, ACA remains one of the most complex pieces of legislation ever passed in America due to the political landscape in which it was passed into law. Over time, the Affordable Care Act (ACA) has undergone multiple revisions and amendments in order to adapt with changing demographics of our great nation. If you haven’t heard about it already, chances are high you have been living under a rock! That is why it is wise to stay up-to-date with current health policy developments so you can better comprehend their effect on daily life.

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About the Author: Raymond Donovan