What is the Affordable Care Act (ACA)?

The Affordable Care Act (ACA) is the comprehensive health care reform approved by President Barack Obama in March 2010, also known as OBAMACARE.

Formally known as the Patient Protection and Affordable Care Act, or commonly known as obama care, is the law that includes a list of health-related provisions intended to extend health insurance coverage to millions of uninsured Americans.

The Act expanded Medicaid eligibility, created health insurance exchanges, and prevents insurance companies from denying coverage (or charging more) because of pre-existing health conditions. It also allows children to remain on their parents’ insurance plan until age 26.

Key information:

  • The Affordable Care Act (ACA), also known as Obamacare, was signed into law in March 2010. It was designed to extend health insurance coverage to millions of uninsured Americans.
  • The Act expanded Medicaid eligibility and created a Health Insurance Marketplace. Prevents insurance companies from denying coverage due to pre-existing conditions. Additionally, it requires plans to cover a list of essential health benefits.
  • Low-income families may qualify for additional subsidies on health insurance plans through premium tax credits and cost-sharing reductions.

Understanding the Affordable Care Act (ACA)

The Affordable Care Act (ACA) It was designed to lower the cost of health insurance coverage for those who qualify.

The law includes tax credits and cost-sharing reductions to help lower costs for low-income individuals and families so they can pay their premiums..

Premium tax credits lower your health insurance bill each month. Cost-sharing reductions or subsidy payments through tax credits lower your monthly costs for deductibles. They also lower your out-of-pocket maximum – the total amount you pay in a year for covered health expenses.

All plans that meet HERE, including those sold on the Health Insurance Market, must cover «essential health benefits» and specific, such as the following:

  • Outpatient services for patients
  • Breast-feeding
  • Emergency services
  • Family planning
  • pediatric services
  • Hospitalization
  • laboratory services
  • Mental health and substance use disorder services
  • Pregnancy, maternity and newborn care
  • rehabilitation services
  • Prescription drugs
  • Preventive and wellness services and chronic disease management

Besides, the Affordable Care Act (ACA) requires most insurance plans to cover at no cost to policyholders a list of preventive services. These include checkups, patient counseling, vaccinations, and numerous health screenings.

It also allowed states that chose to extend coverage of Medicaid to a wider range of people who could use this insurance. To date, 37 states and the District of Columbia have exercised that option..

Special Considerations

A notable part of the Affordable Care Act (ACA) was the individual mandate, a provision that requires all Americans to have health care coverage, whether from an employer or through the ACA or another source, or face penalties. increasingly severe taxation for not having it.

This mandate served the dual purpose of extending health care to uninsured Americans and ensuring that there was a large enough group of insured people to support health insurance payments.

On January 20, 2017, in his first executive order after taking office, President Donald Trump signaled his intention to eliminate/cut funding for the Affordable Care Act (ACA), telling executive agency heads that they should “delay the implementation of any provision or requirement of the Act that imposes a fiscal burden on any State.”

The intent of this order marked the first phase of Republican efforts to repeal and replace the ACA. Rolling back the law was one of Trump’s central campaign promises aimed at reducing the tax burden on the government.

Attempts to repeal the law entirely in 2017 were unsuccessful. However, the government substantially reduced its outreach program to help Americans enroll in the HERE and cut the enrollment period in half.

Changes were made to the law that address some of the objections raised by opponents, while keeping the market open for users.

So, as part of the Tax Cuts and Jobs Act, Congress eliminated the penalty for not having health insurance. Beginning with the 2019 taxes, the individual mandate was reduced to zero dollars, eliminating the requirement that many Republicans had opposed.

By 2018, the number of Americans covered by the ACA had dropped from 17.8 in 2015 to 13.8 in 2015, according to a report by the health research organization KFF.

In March 2019, the Trump administration reported that it will seek to repeal the entire Affordable Care Act (ACA). For its part, the Justice Department in a letter sent to a federal appeals court said it agreed with a federal judge in Texas who declared the health law unconstitutional. HERE and added that he will support the sentence of second instance.

The case is expected to reach the Supreme Court with a front of 21 lawyers defending the Affordable Care Act (ACA). Meanwhile, also in March 2019, House Democrats announced legislation to support the Act and expand coverage.

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