The Affordable Care Act (ACA) is a federal law that helps uninsured people get low-cost health insurance. This affects how much you will pay for insurance and the quality of health insurance offered by private insurance companies in the health insurance market.
Higher standards for insurance companies
Health insurance companies must:
- insure people who have pre-existing medical conditions,
- cover basic medical benefits,
- offer preventive health care at no cost and
- allow children under 26 years of age to remain on their parent’s health insurance plan.
Under the ACA, the cost of your health insurance premium is based on your income, not what the insurance company wants to charge. Most people who sign up under the ACA qualify for tax credits that lower the cost of their insurance premiums. Cost-sharing subsidies lower out-of-pocket costs for Silver plans purchased through the Health Insurance Marketplace. If you don’t qualify for these, you may qualify for Medicaid.
Types of plans
- Bronze – lowest-cost plan. 60% of medical costs are paid by the insurance company; you pay the remaining 40%.
- Silver: 70% of medical costs paid by the insurance company; you pay the remaining 30%.
- Gold: 80% of medical costs paid by the insurance company; you pay the remaining 20%.
- Platinum: the most expensive plan. 90% of medical costs are paid by the insurance company, you pay 10%.
The health reform, promoted during the presidency of Barack Obama, is threatened with being dismantled by the new Republican government of President-elect Donald Trump.
The Patient Protection and Affordable Care Act, known as Obamacare, was one of the most controversial measures during outgoing President Barack Obama’s presidency.
It was enacted in March 2010 and in 2012 the Supreme Court upheld its constitutionality. As of January 1, 2014, health insurance became mandatory for most people in the United States.
What are its advantages?
1. Americans can access “high quality” and “affordable” health insurance.
2. More than half of uninsured Americans can get free or low-cost health insurance, and some can get help through the “Health Insurance marketplace.”
3. Insurers will not be able to deny coverage to a person when they get sick. It can only be canceled when there is fraud on the part of the patient.
Some of the most popular provisions of the reform include:
- Children can stay in their parent’s health plan until age 26.
- No one can deny insurance for a pre-existing medical condition.
- Companies can no longer charge women more than men.
What are the disadvantages?
1. If someone does not sign up for health insurance, they will be penalized with the payment of a tax. The amount will go up every two years.
2. All people have to get insurance. It doesn’t matter if they are sick or not, they need the insurance because it is the law.
3. Insurance companies are pulling out of Obamacare because fewer Americans than expected are signing up; which drives up insurance costs and drives participation down even further.
For some middle-income Americans, the subsidies available for purchasing Obamacare policies are not generous enough and the penalties for not having coverage are too small to encourage them to sign up for plans.
4. Premium prices will rise an average of 25 percent in 2017. This increase was predicted at the law’s inception, and the government subsidy to help pay for insurance will also increase, but not all Americans are ineligible. for these subsidies.
5. There are still 30 million people without health coverage, in addition to undocumented immigrants, who are tacitly left out of the statistics.
The United States Senate, dominated by the Republican Party, voted in favor of starting the process to repeal “Obamacare”. The president-elect of the United States, Donald Trump, will sign executive orders to dismantle the health reform, said the vice president-elect, Mike Pence.