Affordable Care Act (ACA) – Advantages and Disadvantages

What Is the Affordable Care Act (ACA)?

The Affordable Care Act (ACA) is a healthcare bill enacted on March 23, 2010. This law is considered one of President Barack Obama’s greatest achievements as president and provides people with insurance. It is the comprehensive healthcare reform that helps to extend health insurance coverage to millions of Americans.

Aimed at increasing the quality and affordability of health insurance, the Affordable Care Act will help millions of Americans to get coverage through its various provisions, helping to ensure all Americans access to affordable and meaningful health insurance.

The Affordable Care Act was enacted to make it easier for Americans to afford the insurance required to have. There is also consumer protection. They guarantee you can’t be denied coverage for pre-existing conditions. You can also stay on your parent’s insurance until age 26.

Understanding the Affordable Care Act (ACA)

The Affordable Care Act is the Obama administration’s signature health care law. It includes a range of provisions designed to reduce health care costs, promote quality, and provide more Americans with coverage.

The ACA also helps low- and moderate-income Americans afford the cost of coverage by providing premium tax credits to help pay a portion of monthly premiums. It’s a financial subsidy that lowers the cost of a monthly insurance bill based on a percentage of a person’s income. This financial support is beneficial for people with low incomes.

Any insurance plan offered through the Health Insurance Marketplace (Marketplace) is required to cover these services. These may include

  • Ambulance Service
  • Hospitalization
  • Lab services
  • Mental health services
  •  Pregnancy 
  • maternity
  • newborn care
  • Prescription medications
  • Preventive and wellness services 
  • chronic disease management
  • Pediatric services
  • Rehabilitative and habilitative service

The ACA requires almost all insurance plans to cover a wide variety of preventive care for free. These services can drastically reduce the overall cost of a patient’s treatment and save them from financial ruin.

Enrollment in a plan can be done through the Health Insurance Marketplace during an open enrollment period. This is your chance to buy or switch plans for the following year. You cannot enroll until the following year unless you qualify for a special enrollment period if you miss this time.

Special Considerations

A crucial part of the Affordable Care Act is the individual mandate, a provision requiring all Americans to have healthcare coverage—either from an employer or through the ACA or another source—or face tax penalties. In 2017, the mandate was eliminated.

The Affordable Care Act is a healthcare mandate passed in the United States to ensure that all citizens access health care.

Criticism of the Affordable Care Act (ACA)

Critics of the ACA focused on expanding federal power by requiring all individuals to purchase a service regardless of whether they wanted it or not.

It was a legal challenge issued by the National Federation of Independent Business. However, the Supreme Court upheld the individual mandate as a constitutional exercise of Congress’s taxing power. The court determined that the penalty for not purchasing health insurance did not constitute a tax under Article 1, Section 8 of the U.S. Constitution. It called for a “large and hidden” payment to the IRS that would be collected by citizens who chose not to purchase insurance.

Advantages of ACA

  • The ACA will help millions of people get the care they need and coverage they want.
  • Many insurance companies will now cover preventive care at no additional cost to you. 
  • It will also cut healthcare costs for seniors by allowing Medicare to negotiate with drug companies to provide cheaper drugs. 
  • Expanding Medicaid to cover more low-income Americans. 
  • Ensuring that kids who were eligible for health insurance through their parents could keep their plans. 
  • Reforming the healthcare industry by promoting competition, choice, and affordability.
  • Limiting out-of-pocket expenses for seniors and people with disabilities and encouraging innovation in alternative delivery systems.
  • Strengthening Medicare by improving provider payment rates and reducing fraud and abuse.

These are all great changes that will help Americans get the healthcare they need.

Dis-advantages of ACA

  • Families with annual income less than 250 percent of the federal poverty level will not buy insurance through the new exchanges created under the law. Nor can they get tax credits to help pay for coverage through their employers. Instead, those with incomes above that level will have to pay more through taxes or face huge subsidies to help pay for insurance through employers or government programs.
  • Many businesses reduce employee hours or care standards to avoid paying for expensive insurance for employees who act as if they have no illness or disability.

The Affordable Care Act (ACA) is a major piece of legislation designed to provide health insurance to individuals who don’t have it and boost the popularity and cost of health insurance overall.

Key Takeaways

  • The Affordable Care Act (ACA) is a healthcare bill enacted on March 23, 2010. This law is considered one of President Barack Obama’s greatest achievements as president and provides people with insurance.
  • Aimed at increasing the quality and affordability of health insurance, the Affordable Care Act will help millions of Americans to get coverage through its various provisions, helping to ensure all Americans access to affordable and meaningful health insurance.
  • The ACA also helps low- and moderate-income Americans afford the cost of coverage by providing premium tax credits to help pay a portion of monthly premiums.
  • The Affordable Care Act requires almost all insurance plans to cover a wide variety of preventive care for free. These services can drastically reduce the overall cost of a patient’s treatment and save them from financial ruin.