The ACA significantly changed the healthcare system in the U.S. by reducing the amount individuals and families paid in uncompensated care. The act requires every American to have health insurance and provides assistance to those who cannot afford a plan.Oct 24, 2020
|Nicknames||Obamacare, Affordable Care Act, Health Insurance Reform, Healthcare Reform|
|Enacted by||the 111th United States Congress|
It was designed to extend health coverage to millions of uninsured Americans. The act expanded Medicaid eligibility, created a Health Insurance Marketplace, prevented insurance companies from denying coverage due to pre-existing conditions, and required plans to cover a list of essential health benefits.
The ACA is the most consequential and comprehensive health care reform enacted since Medicare. The ACA has gained a net increase in the number of individuals with insurance, primarily through Medicaid expansion. The reduction in costs is an arguable achievement, while quality of care has seemingly not improved.
The ACA enacted several insurance reforms, effective in 2010, to accomplish the following: Prohibit lifetime monetary caps on insurance coverage and limit the use of annual caps. Prohibit insurance plans from excluding coverage for children with preexisting conditions.
Medicaid expansion: The ACA has improved health outcomes for many Americans by enabling states to expand Medicaid, the source of health care serving low-income populations. In states that have expanded Medicaid, more people are receiving the right care, at the right time, in the right place.
October 25, 2019 – The Affordable Care Act (ACA) did more to improve hospital fiscal health than boost profitability and decrease the amount of uncompensated care delivered, according to a recent study from the Government Finance Research Center at the University of Illinois at Chicago.
Based solely on recent economic growth, the ACA has subtracted $250 billion from GDP. At that pace, the cumulative loss by the end of the decade will exceed $1.2 trillion. Lost growth in work hours per person has removed the equivalent of 800,000 full-time jobs from the economy.
The act aimed to provide affordable health insurance coverage for all Americans. The ACA was also designed to protect consumers from insurance company tactics that might drive up patient costs or restrict care. Millions of Americans have benefitted by receiving insurance coverage through the ACA.
The success of the Affordable Care Act will ultimately be measured by how much it reduces the number of uninsured, whether it improves the quality of care and lowers costs, and by its effects on employment and federal and state budgets.
The law provides numerous rights and protections that make health coverage more fair and easy to understand, along with subsidies (through “premium tax credits” and “cost-sharing reductions”) to make it more affordable. The law also expands the Medicaid program to cover more people with low incomes.
The Patient Protection and Affordable Care Act (ACA) has 3 main objectives: (1) to reform the private insurance market—especially for individuals and small-group purchasers, (2) to expand Medicaid to the working poor with income up to 133% of the federal poverty level, and (3) to change the way that medical decisions …
The comprehensive health care reform law enacted in March 2010 (sometimes known as ACA, PPACA, or “Obamacare”). … The law provides consumers with subsidies (“premium tax credits”) that lower costs for households with incomes between 100% and 400% of the federal poverty level (FPL).
In May the United States House of Representatives voted to repeal the ACA using the American Health Care Act of 2017. On December 20, 2017, the individual mandate was repealed starting in 2019 via the Tax Cuts and Jobs Act of 2017.
Improvements in Community Health Centers -The ACA also provides for improving the quality of our care by strengthening the nation’s network of community health centers and testing new methods for delivering services, for example, coordinating care among physicians and community resources.
The most recent KFF Tracking Poll conducted in December 2020 found about half of the public (53%) hold a favorable opinion of the ACA while about one-third (34%) hold a negative opinion of the law.
The ACA also reduced updates in Medicare payment levels to hospitals, SNFs, hospice, home health, and other providers, for an initial projected savings of $196 billion. All these policies cut payments to payers and providers with little or no evidence of harm to patients.
The Affordable Care Act ushered in changes to the healthcare revenue cycle, including more patient financial responsibility and lower reimbursement rates. … Healthcare providers restructured how they deliver care and collect payments as well as refocused their revenue cycles to maximize profit in a value-based industry.
By reducing the number of uninsured Americans, the Affordable Care Act (ACA) was also expected to lower these hospitals’ significant uncompensated care costs and shore up their financial stability. … These changes improved operating margins for safety-net hospitals in expansion states.
In reviewing evidence over the past five years, this report concludes that the ACA has had no net negative economic impact and, in fact, has likely helped to stimulate growth by contributing to the slower rise in health care costs.
On January 31, 2011, Judge Roger Vinson in Florida v. United States Department of Health and Human Services declared the law unconstitutional in an action brought by 26 states, on the grounds that the individual mandate to purchase insurance exceeds the authority of Congress to regulate interstate commerce.
More than 20 million Americans gained health insurance under the ACA. Black Americans, children and small-business owners have especially benefited. Thirty-seven states have expanded Medicaid, deepening their pool of eligible residents to those who live at or below 138% of the federal poverty level.
Employers are shifting more of the costs to employees through much higher deductibles, higher copayments and coinsurance, higher premium contributions, higher shares of drug costs, and an increase in contributions for dependent coverage. This trend began before the Affordable Care Act (ACA) was implemented.
ACA Early Returns
Medicaid expansion, in particular, has been associated with a significant increase (6.6 percentage points) in physician visits among low-income adults, as well as increases in preventive care such as dental visits and cancer screenings, specifically among childless adults (80, 97).
After implementation of the ACA, the number of people without health insurance in the US declined by 13.3 million from late 2013 through 2017. However, the uninsured population rose by 1.9 million between 2017 and 2018, to 27.5 million people.
The ACA has reduced the number of uninsured people to historically low levels and helped more people access health care services, especially low-income people and people of color.
ACA Has Not Been Repealed or Replaced, & Lawsuit Doesn’t Affect Enrollment in 2021 Plans. Despite the ever-present headlines about health care, the Affordable Care Act remains the law of the land. And as noted above, the American Rescue Plan has expanded the ACA’s subsidies to make them larger and more widely available …
What is the main objective of the ACA? Increases benefits and lower costs for consumers, bolster our health care and public health workforce and infrastructure, foster innovation and quality in our system.
A set of 10 categories of services health insurance plans must cover under the Affordable Care Act. These include doctors’ services, inpatient and outpatient hospital care, prescription drug coverage, pregnancy and childbirth, mental health services, and more.
The primary goals of the Affordable Care Act were to make health insurance more affordable, to institute consumer protections, and to increase the number of people covered by health insurance. One significant product of the ACA was a health insurance marketplace (also called an exchange) run by the federal government.
The ACA was enacted with the goals of increasing the quality and affordability of health insurance, lowering the uninsured rate by expanding public and private insurance coverage, and reducing the costs of healthcare for individuals and the government.
What was the widespread problem that eventually reached unacceptable levels and led to the Health Insurance Portability and Accountability Act (HIPAA) in 1996? a. Job lock for individuals with preexisting health conditions who feared being unable to obtain health insurance if they changed jobs.