The Affordable Care Act, commonly referred to as Obamacare, has revolutionized healthcare delivery in America. It has increased access to health insurance for more people and fundamentally altered how insurers engage with customers.
The Affordable Care Act also established the Health Insurance Marketplace, where Americans can find ACA-compliant coverage at an affordable price. Through this platform, it’s simple to find a plan that meets your needs at an affordable cost.
The Affordable Care Act
On March 23, 2010, Congress passed the Affordable Care Act, which contains numerous important provisions designed to increase coverage, control healthcare costs, and enhance healthcare delivery systems.
The Affordable Care Act (ACA) sets limits on out-of-pocket costs, protects against unexpected medical expenses, and requires insurance plans to cover recommended preventive services at no cost. These policies have made healthcare more accessible and improved the health of 137 million Americans.
The Affordable Care Act (ACA) also offers tax credits to lower-income people for purchasing insurance through state-run individual exchanges. Unfortunately, these subsidies have been the subject of multiple court challenges.
The Health Insurance Marketplace
The Health Insurance Marketplace is the go-to place to shop for ACA-compliant health insurance plans, check if you qualify for subsidies and apply for other financial aid that could reduce your premium costs. Depending on your income level, you can get a plan that offers affordable coverage with essential benefits like doctor visits, hospitalization, prescription drugs and preventive care without sacrificing quality of service.
For the first three years of the Affordable Care Act (ACA), many who had been uninsured and paying high premiums could purchase more affordable ACA-compliant plans through the Marketplace. But in recent years, some individuals have left these markets in search of cheaper alternatives outside the Marketplace.
Despite these shifts, the individual market remains remarkably steady. Prices may be high but still below what they would be in a normal medical cost environment, and insurer participation has remained robust. Furthermore, Congress has created enhanced premium subsidies which continue to support pricing stability and consumer access.
Subsidies
Subsidies are discounts that lower your monthly premium (the cost of health insurance). They’re accessible through the marketplace.
Unfortunately, subsidies may not be enough to cover all costs associated with your health insurance plan. You’ll still have to cover out-of-pocket expenses such as deductibles and copayments yourself.
Subsidies help make health insurance more accessible for lower-income families and individuals, while protecting the market from large losses.
According to researchers from the Urban Institute, extending ARPA subsidies permanently would lead to 4.4 million fewer uninsured people and 5.1 million additional marketplace enrollees by 2022.
On average, premiums would increase by 15 percent without subsidies during this same period – so an ARPA extension would only cause a small bump on an otherwise flat national rate rise.
Coverage Options
The Affordable Care Act created Marketplaces so you can easily compare health plans and select one that meets your requirements. Furthermore, short-term, limited-duration insurance (STLDI) is now accessible at an affordable price point.
Marketplace plans offer a range of ACA-compliant features and benefits. Some encourage you to select doctors and hospitals within their network, while others pay a greater share of your care when you go outside that plan’s network.
State insurance regulators have examined how comprehensive plans may influence premiums in the insurance market. Their studies revealed that the more comprehensive a plan is, the higher its price tag.
Some ACA-compliant plans come in five metallic tiers — Bronze, Silver, Gold, Platinum and Catastrophic — each offering something special for your money. These tiers help you understand what value you get for your money and how much of your medical costs your insurer will cover on average.
