On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act into law, officially known as the Affordable Care Act.
The Affordable Care Act (ACA) has three primary goals: to reform private insurance markets-especially for individuals and small groups-, expand Medicaid to working poor with income up to 133% of the federal poverty level, and alter how medical decisions are made. These initiatives rely mainly on private choices rather than government regulation and assume rational decision-making practices.
The President
Who designed the Affordable Care Act is still debated. President Obama often gets credit for its creation, though it was actually passed into law by the 111th Congress and signed into law by Obama himself in March 2010.
Under the United States Constitution, Presidents possess a variety of powers that are granted to them, such as direction of federal agencies and issuing executive orders. Of particular note is an executive order that grants authority to the head of HHS to restrain or even reverse certain ACA regulations without formal legislation being passed.
Other notable ACA innovations include state or multi-state insurance exchanges that enable individuals and small businesses to purchase quality, affordable health insurance. These exchanges offer the quickest and most efficient way to find and compare plans from certified / ACA endorsed providers. Furthermore, the ACA strives to reform American healthcare by lowering costs, expanding access and improving quality of care.
The Congress
The Congress is the legislative branch of the federal government. It consists of the Senate and House of Representatives, which are each bicameral (two houses).
The members of Congress are elected for two-year terms. They are also responsible for voting on bills and enacting laws.
As part of its process, Congress establishes committees to consider legislation. These committees consist of subcommittees, which review and accept or reject bills before they are reported to the full committee for further consideration.
The ACA aims to reform the US health care system by making the private market more competitive and expanding Medicaid to the working poor. But the law may fail to achieve its goals, as there are serious problems with the way the system is organized and paid, in the information and choices available to consumers and the ability of participants to respond to incentives. Consequently, it will be necessary to correct for market failure in order to make the ACA truly effective.
The White House
For over two centuries, the White House has been the official residence of America’s President and a symbol of American democracy. It is also unique in that it is open to the public without charge.
At 1600 Pennsylvania Avenue in Washington, DC, the White House is one of America’s most beloved tourist destinations. Each president since John Adams has lived here and it has witnessed both national celebrations and times of deep sadness.
Today, the White House comprises 132 rooms and 35 bathrooms on six levels. There are 28 fireplaces, eight staircases and three elevators as well as a tennis court, jogging track, swimming pool and movie theater. As part of its living museum mission managed by the National Park Service, the House serves as an interpretive resource about American history; its educational literature/films/special programs/website are maintained by The White House Historical Association that produces educational literature/films/special programs/website about it all.
The Insurance Industry
The insurance industry can be divided into three primary segments based on the product sold: life & health, property/casualty and financial management which encompasses reinsurance and other forms of excess insurance.
The Affordable Care Act drastically altered the individual health insurance market through three key reforms: prohibiting insurers from considering subscribers’ health status or risk; subsidizing coverage for millions of new buyers – many for the first time in their lives; and creating an “exchange” structure that facilitates comparison shopping. These reforms have had a substantial effect on insurers’ financial performance as well.
By law, insurers must maintain an 80% medical loss ratio (MLR) in individual and small-group markets and an 85 percent MLR for large groups. This requires them to devote at least 80% of premiums towards medical claims while using the remaining 20% for administrative costs and profits. Any remaining gap must then be distributed back to customers as a rebate.
