What is Obamacare and Why is it Bad?

What is Obamacare and Why is it Bad?

In 2010, Congress passed the Patient Protection and Affordable Care Act (also known as Obamacare). This set of federal rules aims to reduce healthcare costs.

People who purchase private health insurance on an exchange will be provided financial assistance to help cover their premiums. These subsidies are designed to make the plan more affordable for lower-income Americans.

It’s a government takeover of healthcare

Obamacare, officially the Patient Protection and Affordable Care Act, is a federal law passed in 2010. It seeks to provide more Americans with healthcare coverage by revamping the individual insurance market (where people purchase policies on their own) and expanding Medicaid, a public program for low-income Americans.

In response, the law created health insurance exchanges where private insurers compete for business. These marketplaces can be operated by state governments or the federal government and offer assistance to people in purchasing coverage.

Many small businesses have also reaped benefits from the health reforms. Firms with 50 or fewer employees can now offer their employees multiple plans through these exchanges.

It’s expensive

In 2014, many Americans who qualified for assistance found individual market insurance plans at less than $100 a month. This is due to how assistance works – it reduces premiums and out-of-pocket expenses based on income.

Health insurance costs vary based on family size, age, smoking status, plan choice, region and state as well as income. These amounts fluctuate annually and may include deductibles and co-pays that must be met.

Different Obamacare plans and tiers of coverage exist, each offering a slightly different price point and level of protection. The standard benchmark SILVER plan is the lowest cost Silver option available in your area; each year the average costs for these plans are published for each state (see list here).

Many Americans now have access to free health coverage through Medicaid/CHIP, and many qualify for assistance that reduces their out-of-pocket expenses. Unfortunately, Obamacare has created 85 new regulations that are costing employers and states a considerable amount of money.

It’s a waste of money

The government has spent more than $50 billion annually to subsidize Obamacare, yet that money has not resulted in an overall gain in private insurance coverage. According to CBO data, only about 2 million people have gained exchange-plan coverage through these exchanges.

Unfortunately, the majority of those who gain coverage under the Affordable Care Act are those whose employer-based plans failed to abide by law’s mandate. That makes the ACA a net loss for taxpayers and an unattractive deal even for you as an individual.

Additionally, it’s a waste of time and an imposition on small businesses. The Affordable Care Act (ACA) requires employers with 50 or more full-time employees to provide health care to their workers or face financial penalties.

It’s a scam

The Affordable Care Act (ACA) was meant to expand healthcare access for more Americans, but it’s actually a scam. To achieve that objective, the ACA takes various routes – including providing private insurance through online marketplaces called exchanges with substantial federal subsidies.

It also encourages states to expand their Medicaid programs, giving lower-income people access to health care. Unfortunately, many Republican-led states chose not to do so, leaving millions without coverage.

Even after nearly a decade since Obamacare became law, con artists continue to prey upon Americans with the same tricks they always employ. Unfortunately, many of these scams are directed at those with little understanding of the United States’ intricate healthcare system.

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About the Author: Raymond Donovan