What Does the Affordable Care Act Do?

What Does the Affordable Care Act Do?

What does the affordable care act do

The Affordable Care Act, commonly referred to as Obamacare, is a landmark health reform law passed by the federal government in 2010.

With the implementation of the Affordable Care Act (ACA), more Americans now have access to health insurance and improved coverage for Americans. Furthermore, it has changed how health insurance companies sell coverage.

It makes health insurance more affordable for people with limited incomes

The Affordable Care Act makes health insurance more accessible by making it possible to get low-cost coverage that includes essential benefits like annual checkups, maternity and newborn care, prescription drugs, emergency services, mental health services, pediatric services and more. Furthermore, the act extends coverage to people who were previously uninsured.

Insurance companies must cover essential health benefits, such as preventive care and screenings, while restricting deductibles and copayments. This makes it simpler for individuals to purchase private plans by eliminating pre-existing conditions and excessive waiting periods.

Furthermore, it offers financial assistance for premiums and cost-sharing reductions to make healthcare more accessible. These subsidies are administered through state health insurance Exchanges.

These financial assistance programs are an integral component of the Affordable Care Act (ACA) to make health insurance more accessible and reduce income inequality by increasing access to quality coverage. In the United States alone, these changes have resulted in a dramatic reduction of uninsured rates.

It makes health insurance more affordable for people with pre-existing conditions

Before the Affordable Care Act (ACA), health insurance companies could deny coverage or charge significantly more for people with pre-existing conditions. Today, this isn’t allowed and all Marketplace plans provide coverage for pre-existing conditions from the day you purchase a plan.

A recent study suggests the Affordable Care Act has made it less likely that you’ll be denied coverage due to a health problem due to past or current illness. To conduct the research, researchers analyzed eligibility guidelines from 19 high-risk pools that existed prior to the ACA as well as underwriting policies from seven major insurance carriers.

The results demonstrate that many individuals with pre-existing conditions were able to secure individual market coverage due to the Affordable Care Act (ACA). Furthermore, older Americans appeared particularly at risk of not having access to affordable coverage due to a pre-existing condition.

It makes health insurance more affordable for people who lose their job-based health insurance

Due to the current recession, millions of people have lost their job-based health insurance and are struggling to find employment. The Affordable Care Act has made it easier for these individuals to maintain coverage.

Under the Affordable Care Act (ACA), individuals who lose their job-based insurance can search for coverage in the marketplace and may qualify for subsidies to reduce cost of a plan. Unfortunately, these subsidies are based on income so it’s essential to shop around to find the most competitive plan at an affordable price.

Additionally, those experiencing a sudden reduction in income (such as those losing unemployment benefits) may become newly eligible for Medicaid coverage. This can be an advantageous option for those living below the poverty level in states that have expanded Medicaid under ACA provisions.

However, the uninsured rate among those who lose their job-based coverage is likely to increase. This is because people with jobs offering no or low-paying benefits are more likely to forgo employer-based insurance and struggle to afford other necessities like food, shelter, and medical care.

It makes health insurance more affordable for people who switch jobs

The Affordable Care Act (ACA) gives people who lose job-based coverage or get laid off the opportunity to purchase health insurance during a special enrollment period. This policy change is significant because it helps keep healthcare affordable for many Americans.

The law also broadens Medicaid eligibility to people whose incomes exceed 138% of the federal poverty level, meaning millions more people now have coverage due to this expansion.

Additionally, large companies who do not provide health insurance must pay a penalty when one or more full-time employees receive premium tax credits in the exchanges. While this could potentially have some impact on job lock, it’s difficult to estimate its exact extent.

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About the Author: Raymond Donovan