Under the Affordable Care Act (ACA), most Americans must possess health insurance or face a penalty fee. Individuals purchasing their own coverage can do so through state and federal marketplaces referred to as exchanges.
Lower income families may qualify for subsidies to assist them in paying their premiums; these subsidies depend on the cost of their benchmark plan.
What is the ACA?
Obamacare (also referred to as Patient Protection and Affordable Care Act) was signed into law by President Barack Obama in 2010. This landmark legislation brought dramatic reform to U.S. healthcare systems by decreasing uncompensated care costs individuals and families pay out-of-pocket.
The law prohibits health insurers from denying coverage to people with preexisting conditions and mandates they cover all essential benefits. It prohibits lifetime monetary caps on health coverage and mandates insurers spend at least 80% to 85% of premiums on medical services, while also permitting children under 26 years old to remain on their parent’s health plan, making it easier for small businesses to offer coverage.
The Affordable Care Act is funded through new taxes on medical devices and pharmaceuticals as well as increases to Medicare payroll tax on those earning over $200,000. Furthermore, subsidies based on income help lower health insurance costs for individuals and families who can’t afford coverage alone.
How does the ACA work?
The Patient Protection and Affordable Care Act, commonly referred to as Obamacare, was signed into law in 2010. Since its implementation, it has drastically transformed how Americans access health insurance. Prior to Obamacare being passed into law, insurers could exclude people with preexisting conditions or charge higher premiums; thanks to Obamacare making accessing coverage much simpler, affordable for many and financial assistance available to make coverage even more readily accessible for many Americans.
Now, people can enroll in Affordable Care Act marketplace coverage and the number of uninsured Americans has hit an all-time low. Furthermore, the ACA has helped reduce costs for millions by offering cheaper plans with limited benefits.
The Affordable Care Act has also been paying for itself by increasing taxes on specific products and services such as medical devices and prescription drugs, raising taxes on those with higher incomes to help subsidize insurance for low-income populations, as well as funding sources like savings in Medicare payments or new fees on tobacco and certain medical devices.
Will the ACA be available in 2023?
2023 marks another opportunity for consumers to sign up for health insurance through the Affordable Care Act marketplaces. Consumers without coverage through work or government programs such as Medicare can shop and enroll during open enrollment period which runs between November 1 and January 15 each year.
The Affordable Care Act’s premium subsidies help lower the costs associated with marketplace plans for millions of Americans, and cost-sharing reductions further lower out-of-pocket expenses for consumers.
While many find the Affordable Care Act (ACA) controversial, most Americans agree it has made health insurance more accessible and affordable for millions of Americans. And although there have been challenges associated with it, more than 23 million people now enroll in health coverage through ACA marketplace coverage – and according to estimates by Congressional Budget Office this figure would likely continue to grow without changes being made to this law.
What if I don’t qualify for the ACA?
The Affordable Care Act, more commonly known as Obamacare, offers financial aid to assist consumers with covering health insurance costs. People without coverage through their employer or Medicare may enroll in a private plan via federal and state marketplaces or exchanges and often qualify for premium tax credits to reduce monthly health insurance premium costs as well as cost-sharing reductions which help lower out-of-pocket medical expenses such as deductibles and copayments.
Most ACA exchange enrollees qualify for subsidies to make their plans affordable, though their dollar values can fluctuate year to year; as a result, it’s essential for consumers to actively renew their enrollment every year in order to receive maximum benefits from their marketplace plan. Furthermore, qualifying life events could prompt special enrollment periods; events like getting married, moving coverage areas or losing job-based coverage might entitle individuals to change plans as part of an open enrollment period.
