What Is Obamacare?

What Is Obamacare?

What obamacare

Obamacare makes health insurance accessible and affordable for all Americans, through tax credits to assist families and individuals afford coverage, state-based health insurance exchanges, allowing young adults to remain on their parents’ plans, as well as mandating that insurance companies spend 80 percent of premium dollars on medical care services.


Obamacare (The Patient Protection and Affordable Care Act) is an expansive piece of legislation signed into law by President Barack Obama on March 23, 2010. Main objectives were to reduce the number of uninsured Americans, increase coverage through insurance marketplaces, and bring down health care costs. It also contains several provisions designed to make health insurance more accessible for millions of Americans who previously faced difficulty purchasing individual policies due to preexisting medical conditions. Obamacare marketplace websites could use significant improvements when it comes to digital accessibility. They frequently fail to provide text equivalents for images and are difficult to navigate on mobile devices, which makes them less user-friendly for people with disabilities or relying on assistive technology – leading them to high rates of abandonment and decreasing usability.


The Affordable Care Act (ACA)’s primary objective is to expand health coverage to millions of Americans who previously had difficulty purchasing individual plans. Furthermore, this landmark legislation also protects consumers against insurance company practices which drive up prices or limit coverage while offering incentives such as cost-sharing reductions and advance premium tax credits that help lower monthly premiums for both individuals and families alike.

All ACA-qualified health plans must offer essential benefits, and private insurers are required to organize them into four primary categories based on premium and deductible cost: bronze, silver, gold and platinum. Plans in the bronze tier have the lowest premiums and deductible costs while those in platinum rank have some of the highest costs.

Individuals and families without employer-based coverage or Medicaid can enroll in an Affordable Care Act-compliant plan during the Open Enrollment Period (OEP), which runs November 1-15. Individuals experiencing certain life events such as moving, getting married, or having a baby may also enroll outside of this window – such as moving, getting married, or having a baby.

Pre-existing conditions

Before the Affordable Care Act (ACA or Obamacare) took effect in 2014, insurers could refuse to cover certain pre-existing conditions in individual marketplace plans and charge more or impose waiting periods on these policies. Once Obamacare became law in 2014, these rules were voided.

Today, a majority of Americans from across all political lines support continuing the Affordable Care Act’s protections for people living with preexisting medical conditions. These protections ensure applicants cannot be denied coverage, charged more or forced to bear out-of-pocket costs related to their condition; while allowing healthy individuals to pay less for health insurance.

Prior to the Affordable Care Act (ACA), individual market insurance companies often required applicants to fill out extensive forms that requested information about all previous medical treatments and histories, which were then used for “post-claims underwriting,” where insurers reviewed medical claims to see if treatment related to preexisting conditions existed; many people were either denied coverage due to this practice or faced significant out-of-pocket costs as a result of it.


The Affordable Care Act includes several taxes and fees to finance its new benefits, rights, and protections – such as an individual mandate with associated fines for not having health insurance as well as higher premiums from certain insurers. It also adds a tax on medical device manufacturers and importers as well as Medicare Part A tax for individuals earning over $200,000.

Taxes and fees will appear on your annual income tax return, reflecting any increases or decreases in income which have an impact on ACA premiums and tax credits. To prevent overpayment, any significant changes should be reported directly to Marketplace immediately to avoid overpayment – using tax credits helps balance your payments so you won’t owe more or less than expected.

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About the Author: Raymond Donovan