The Affordable Care Act (ACA) has had a profound effect on millions of Americans. It offers preventative measures, safeguards against insurance company abuse and tax credits to help pay for health care.
The law has also reduced costs for seniors and young adults, saving Medicare enrollees over $20 billion on prescription drugs. It has expanded Medicaid eligibility and made significant public health investments.
Preventive Care
Under the Affordable Care Act, many preventive health services – like shots and screenings – are covered at 100%, meaning you don’t pay a copayment or coinsurance. This helps you stay healthy, prevent diseases from starting, and keep your existing medical condition from worsening.
Preventive care refers to routine medical and dental services that can help protect you against illness or disease. This includes screenings, tests, immunizations, as well as counseling.
Section 2713 of the Affordable Care Act requires private health plans to cover a broad array of preventive services without cost sharing. These can be provided by doctors, hospitals and other providers who are in network with your health plan.
Coverage for People with Pre-Existing Conditions
Before the Affordable Care Act (ACA), insurance companies could often deny people coverage or charge them significantly higher premiums. Thanks to ACA protections, however, people with pre-existing conditions now have access to affordable health care coverage – starting the day they enroll in their new policy.
According to the Kaiser Family Foundation, up to 130 million non-elderly Americans have a preexisting condition that could have prevented them from getting health coverage in the past. These can range from life-threatening illnesses like cancer to chronic illnesses like diabetes or asthma.
The Affordable Care Act prohibits lifetime and most annual dollar coverage limits, the use of preexisting condition exclusions, and excessive waiting periods for health plans. Furthermore, EHBs (essential health benefits) must be provided that cover hospitalizations, outpatient care, mental health/substance use treatment, prescription drugs and more – making EHBs essential health benefits (EHBs).
Coverage for Young Adults
Young adults can benefit from the Affordable Care Act through its health insurance exchanges and Medicaid expansion, as well as being able to remain on their parents’ plans until age 26.
These provisions expand access to healthcare for millions of young people and eliminate coverage gaps. Studies have demonstrated that health insurance has beneficial effects on healthcare utilization as well as improving mental health in youth.
However, many people worry about the rising premium costs. Some opt for catastrophic or short-term plans which may be less expensive in the long run.
Though the Affordable Care Act will increase premiums for some individuals, those eligible for federal assistance that covers most of the cost will see little effect from this increase. Even those who do experience an increase will enjoy a far greater benefit package than they did under pre-ACA marketplaces; this includes prescription drugs, maternity care and mental-health services not normally included in nongroup plans.
Tax Credits
Premium tax credits are an ACA subsidy designed to reduce health insurance costs for those without access elsewhere. You can receive a credit throughout the year or claim it when filing your taxes to reduce your taxable amount or boost your refund.
The Affordable Care Act (ACA) offers cost-sharing reductions that can help you save money on out-of-pocket expenses such as copays, deductibles and other out-of-pocket costs. However, in order to take advantage of these benefits you must meet income eligibility criteria for a premium tax credit and be eligible for it.
In 2014, those whose incomes fell below 400% of the poverty line (based on household size) could receive a tax credit to help cover their health insurance costs. If your earnings exceeded this amount, however, you would need to repay the full credit.