Affordable Care Act of 2010
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Wilmington University *
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6670
Subject
Medicine
Date
Feb 20, 2024
Type
Pages
4
Uploaded by MinisterWater41784
Americans are required to posses a
minimum essential coverage for
health insurance, including basic
health care benefits.
Insurance companies cannot deny
coverage to individuals based on
prior health conditions or risk of
health conditions. Insurance companies will be required
to offer income-based premiums and
offer a subsidy exchange.
For many years, healthcare reform was a major topic of
discussion. Americans with pre-existing conditions and lower
incomes faced challenges obtaining affordable healthcare.
The Affordable Care Act (ACA) of 2010 made healthcare
more accessible to American families. Sometimes called
Obamacare, the act gave millions of previously ineligible
individuals and families access to medical coverage through
the healthcare marketplace. The primary goals of the ACA
are to make affordable healthcare available to more people by
subsidizing premiums for low-income families, to expand the
Medicaid program to cover adults with income below the
poverty level, and to lower the costs of healthcare. AFFORDABLE
CARE ACT OF 2010
INTRODUCTION
BY : JOANEAH DIXSON,
KRISTEN MORAN, &
IRFERD KAINE KEY POINTS
Insurance companies are prohibited
from revoking care or coverage from
plans already in place. POLICY BRIEF:
"In the wealthiest nation on Earth, no one should go broke just because
they get sick" ~ Barack Obama
AFFORDABLE CARE ACT of 2010 Prior to the Affordable Care Act, insurance companies had very little
restrictions in providing health care coverage. Companies were able to charge
high prices for policies, while limiting coverage (Richard, 2016). “The ACA is
the most comprehensive reform of the US health care system since President
Lyndon B. Johnson signed the amendments to the Social Security Act on July
30, 1965 creating Medicaid and Medicare” (Dolan & Mokhtari, 2013). This
policy is crucial for families because approximately 50 million Americans were
without health insurance coverage due to high costs and insurance companies
turning away individuals based on previous health conditions (DeNavas-Walt
et al. 2011; O’Neil 2010). The Affordable Care Act prohibits insurance
companies from denying customers care and discriminating against individuals
with higher risks or history of health issues (Tanner, 2013). Inflation mixed
with rising demand for health care services have likely driven the health care
market up, drastically increasing the costs of services in the American people.
Between 1990 and 2012, the cost of health insurance policies doubled,
experiencing an average of 9% annual increase in 2011. This increased the
burden of those paying for healthcare out of pocket, creating greater barriers
for average Americans to afford current coverage. This may result in reducing
the amount of coverage received by individuals and families or falling out of
plans completely (Roby et al., 2013). The Affordable Care Act makes eligibility
of receiving care more accessible by requiring insurance companies to offer
packages to individuals of lower-income brackets and requiring basic coverage
plans.
WHY IT MATTERS? The Affordable Care Act was enacted to expand the overall health
care coverage of Americans. This act is groundbreaking because it
requires all health insurance companies to provide a package of
insurance to anyone who makes up to 133% of the federal poverty
level (Roby, Watson, Jacobs, Graham-Squire, Kinane, Gans,
Needleman, & Kominski, 2013). All citizens earning between 100-
400% of the federal poverty line are now eligible to purchase
insurance coverage through an exchange using tax subsidies. This
plan has provided opportunity for approximately 35-55% of
previously uninsured individuals to acquire some level of health
insurance coverage. OVERVIEW
POLICY BRIEF:
INTERVIEW
Interview with Anthony Braxton, local Delawarean:
Q.What healthcare, if any, did you have prior to the enactment of
the Affordable Care Act?
A: Medicaid and Medicare health insurance coverage
Q.Which, if any, healthcare benefits do you currently receive?
A. Still under both programs.
Q.How has your coverage changed since Obama Care?
A. Prior to ACA, I had to pay dental and eye insurance out of
pocket. Now, I am covered for dental insurance and eye care. Q.Has the quality of coverage changed for you?
A. The quality of coverage has increased due to an increase or
expansion of benefits provided through my plan (receive more
benefits now). These were automatically added to my existing plan. Q.How would you describe your satisfaction with your current
health insurance coverage?
A. I think my coverage is excellent. This program has helped many
people, including myself, receive medical benefits that they would
not receive otherwise. It is also very affordable, which is necessary
for people with low incomes or disabilities that would raise costs of
healthcare in years prior. The uninsured Americans rate has reached
the lowest of 8% in 2022.
Over 50 million Americans were uninsured
before Obamacare Act.
39 million Obamacare and Medicare
beneficiaries have free access to a series of
preventive medical services.
A high percentage of uninsured individuals
come from low-income families with at least
one member working full-time.
1 in 5 uninsured adults decided against
seeking medical care due to the high costs.
STATISTICS
.
.
.
POLICY
LIMITATIONS
Despite the Affordable Care Act’s initiative to require all states to participate in Medicaid, a 2012 Supreme Court
ruling favored the states’ choice to participate without penalty of losing federal Medicaid money. This means that
residents can still be without Medicaid insurance coverage in several states. Another option for low-income
earners would be to purchase health care privately using a tax subsidy. However, states are also not required to
participate in the insurance exchanges and since opted out of participation. Low-income earners making below
100% of the federal poverty line do not qualify for the tax subsidy, anyway. This leaves millions of Americans
without insurance, underinsured, or paying ridiculously high prices for health insurance (Roby et al., 2013).
Additionally, the benefit of including more Americans under insurance policies comes at the price of a 2% greater
annual increase of health care costs compared to the trends prior to the enactment of the Affordable Care Act
(Tanner, 2013). However, the higher costs will be slightly offset by the subsidies in participating states. With
health care being covered, at least partly by government funding, these higher prices of services will result in a
higher federal budget for health care, taking away money from other need areas. Finally, the mandates for
minimum essential coverage would make millions of Americans fall out of compliance with coverage and
therefore be required to change their plans (Tanner, 2013). This may result in paying for coverage that is
unwanted or unnecessary for the individuals. (27+ affordable care act statistics and facts: Policy advice , n.d.)
Moran, Kristen. (2022, December 4). A discussion on health care coverage [Interview]. AFFORDABLE CARE ACT of 2010 POLICY BRIEF:
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REFERENCES
RECENT
DEVELOPMENTS
DeNavas-Walt, C., Proctor, B. D., & Smith, J.C. (2011). Income, poverty,
and health insurance coverage in the United States: 2010, U.S. Census
Bureau, current population reports, P60-239. U.S. Government Printing
Office. Retrieved from, http://www.census.gov.mylibrary.wilmu.edu/prod/2011pubs/p60-
239.pdf. Dolan, E. M., & Mokhtari, M. M. (2013). The Patient Protection and
Affordable Care Act (ACA): Pros and cons. Journal of Family and
Economic Issues, 34, 1-2. https://doi.org/10.1007/s10834-013-9352-5 Grafova, I. B., Monheit, A. C., & Kumar, R. (2022). Income shocks and
out-of-pocket health care spending: implications for single-mother
families. Journal of Family and Economic Issues, 43, 489-500.
https://doi.org/10.1007/s10834-021-09780-6 Healthcare.gov (2021, July 1). HHS announces rule to protect
consumers from surprise medical bills. HHS.gov. Retrieved December 4,
2022, from https://www.hhs.gov/about/news/2021/07/01/hhs-
announces-rule-to-protect-consumers-from-surprise-medical-bills.html Moran, Kristen. (2022, December 4). A discussion on health care
coverage [Interview]. Richard, P. (2016). The Burden of medical debt faced by households
with dependent children in the United States: Implications for the
Affordable Care Act of 2010. Journal of Family and Economic Issues, 37, 212-225. https://doi.org/10.1007/s10834-016-9491-6 Roby, D. H., Watson, G., Jacobs, K., Graham-Squire, D., Kinane, C. M.,
Gans, D., Needleman, J., & Kominski, G. F. (2013). Modeling the impact
of the Affordable Care Act and the individual mandate on Californians.
Journal of Family and Economic Issues, 34, 16-28.
https://doi.org/10.1007/s10834-012-9349-5 Tanner, M. (2013). The Patient Protection and Affordable Care Act: A
dissenting opinion. Journal of Family and Economic Issues, 34(1), 3-15.
http://hdl.handle.net/10.1007/s10834-013-9350-7 27+ affordable care act statistics and facts: Policy advice. 27+
Affordable Care Act Statistics and facts | Policy Advice | Policy Advice.
(n.d.). Retrieved December 4, 2022, from
https://policyadvice.net/insurance/insights/affordable-care-act-statistics/
In January 2022, the Biden-Harris administration’s No
Surprises Rule took effect. The rule protects consumers
from excessive out-of-pocket expenses for emergency
and non-emergency services, out-of-network, and
ambulance services. Under the rule, “emergency services
must continue to be covered without any prior
authorization” (Healthcare.gov, 2021).