Understanding the Affordable Care Act

What is the Affordable Care Act?

The Affordable Care Act (ACA) also known as Obamacare, without doubt, a landmark legislation that will forever change America’s health-care Industry.  Like all great legislation, the Affordable Care Act has generated a lot of debate, emotions, Mistruths, and all the Melodramas that comes with legislation of such magnitudes.  To some American Citizens, it is the best thing that will happen to their lives while to others, the Affordable Care Act is an anathema that needs to be eliminated pronto from the American society. That said, what exactly is the Affordable Care Act?

ACA Insurance History

The origin of the Affordable Care Act is traced to 1989 when the conservative political foundation, the Heritage Foundation suggested an alternative insurance policy. Since then this Idea evolved and was first adopted and implemented in the state of Massachusetts by Governor Romney.

When Barack Obama was elected as President in 2008, the Democratic Party controlled Congress passed a series of Legislations, which culminated in the passage of the Affordable Care Act 2010. President Obama signed the Act as the law of the land on March 23, 2010.

Key Pillars of the Affordable Health Care Act

The Affordable Care Act is a relatively complicated law with many provisions. Briefly, the following are some of the main changes it will bring to the healthcare industry:

  • Insurance companies are prohibited from dropping insurance covers for patients who fall sick or they make an honest mistake in their cover.
  • It eliminates discrimination based on gender and pre-existing conditions.
  • Young adults are now able to stay covered by their parents until they turn 26-years.
  • It prohibits unjustified premium hikes and gives the power to Americans to appeal against insurance companies misdeeds.
  • Formation of Health Insurance Exchange marketplaces in states where Americans have the chance of opting for difference insurance covers.

Not Insurance Replacement

It is imperative to note that the Affordable Care Act is neither a Private nor a Public insurance cover meant to replace existing insurance companies. It primary objective is the expansion and Improvement of Public health insurance options currently available such as Medicaid and Medicaid. The Act also improves options for Americans by creating a regulated Marketplace where Americans get to buy their desired insurance covers.

Understanding the Affordable Care Act | ACA Insurance