Congress passed the Affordable Care Act (Patient Protection and Affordable Care Act) in 2010, providing coverage to millions more Americans while cutting health care costs, improving system performance, and increasing access to care.
Though the Affordable Care Act (ACA) has been challenged in court, millions of Americans continue to benefit from it and maintain their coverage. Discover why the ACA was passed and how it’s impacting you and your family today.
1. To make health care affordable.
The Affordable Care Act (ACA) was passed to make health care more accessible and affordable for everyone. Through this law, more Americans will gain access to coverage, consumer protections will be strengthened, prevention and wellness are promoted, quality and system performance improved, as well as curbing rising health care costs.
The Affordable Care Act (ACA) makes it possible for people to purchase affordable health insurance through state exchanges. It provides subsidies that help pay for premiums and reduce out-of-pocket expenses such as copayments and deductibles.
Its reforms safeguard people with preexisting conditions and those seeking preventive care from being denied coverage. Furthermore, the Affordable Care Act makes it simpler for small businesses to acquire affordable health coverage.
One of the key provisions of the Affordable Care Act (ACA) is its requirement that all private health insurers limit their enrollees’ out-of-pocket costs. Before this law, many people with employer coverage were left facing tens of thousands of dollars in medical bills just when they needed them most.
2. To protect people with pre-existing conditions.
Prior to the Affordable Care Act (ACA), Americans with pre-existing conditions often had difficulty accessing affordable health care. Insurers would charge them more, drop them from their plan, or refuse coverage altogether.
Insurance companies also often imposed annual or lifetime coverage limits, leading to significant out-of-pocket expenses. The Affordable Care Act (ACA) changed this by capping these limits at $7,000 for individuals; providing invaluable protection against catastrophically high out-of-pocket expenses when people with costly medical needs.
The Affordable Care Act (ACA) further prohibited insurers from denying coverage, raising premiums or imposing waiting periods for those with pre-existing conditions. Furthermore, it prohibited discrimination against women by requiring them to provide maternity and essential reproductive health benefits.
These protections remain one of the ACA’s most beloved features, and a majority of Americans across all political parties support their retention. But as we wait for a final ruling on the Trump administration-backed lawsuit, it is clear that we still have much work to do. It’s time for Congress to pass comprehensive legislation that fully safeguards people with pre-existing conditions.
3. To make health care more accessible.
In addition to expanding health care coverage, the Affordable Care Act made it simpler for people to obtain insurance. It created state-based American Health Benefit Exchanges where individuals and small businesses could shop and purchase policies, with premium tax credits and cost sharing reduction (CSR) payments that reduce out-of-pocket expenses for low income people.
The Affordable Care Act (ACA) also included provisions designed to make it simpler for children to access health coverage through Medicaid and CHIP. These initiatives, such as a single application for eligibility and enrollment, make it simpler for kids to become insured with little or no cost sharing involved.
Furthermore, the ACA provided essential protections for people with preexisting conditions. It changed rating rules to prevent insurers from denying coverage to individuals with certain preexisting conditions and restricting premium variations based on health status. It also established guaranteed issue policies, requiring insurers to offer policies regardless of health status or medical history.
4. To make health care more affordable.
The Affordable Care Act, commonly referred to as Obamacare, was signed into law on March 23, 2010 by President Barack Obama and Vice President Joe Biden. Its aim was to make healthcare more affordable for all Americans.
Under the Affordable Care Act (ACA), private insurers are required to charge fair premiums for both individual and employer-sponsored coverage. Furthermore, it holds them accountable for making sure at least 80% to 85% of premium funds go towards medical care.
Finally, the ACA safeguards people with preexisting conditions by prohibiting lifetime and annual dollar coverage limitations and preexisting condition exclusions. It also requires insurers to cover essential benefits like prescription drugs, maternity care, and behavioral health so people can afford the treatment they require at an affordable cost.