What is the Affordable Care Act (ACA)?

Also known as Obamacare, the Affordable Care Act (ACA) was signed into legislation by President Obama on March 23, 2010. The historic act revamped healthcare on several levels, from federal Medicaid to individual insurance.

How is the ACA used?

The ACA has several specific provisions: it expanded Medicaid, creates new health insurance exchange markets, and prohibits certain insurance restrictions. First, the new health insurance exchange markets create a place for consumers to compare different health insurance options, understand their options, and apply for the best coverage. The ACA also expands Medicaid to individuals up to 138% of the national poverty level. Obamacare prohibits insurance plans from denying coverage, charging higher premiums, or rescinding or creating coverage inclusions because of preexisting conditions; it also prohibits lifetime and annual dollar limits on coverage and sets a cap on maximum out-of-pocket costs paid per year.

FAQ

What is the public response to the ACA?

As of January 2024, the public response is generally favorable (about 60%) with a moderate but noteworthy minority finding it unfavorable (39%). The unfavorable opinion peaked in July of 2014, with about 53% finding it unfavorable. The favorable opinion peaked in March 2023, with about 62% feeling favorably toward the ACA.

How has the ACA changed since it was passed?

There are five main ways it has changed since 2010: resolving the family glitch, with enhanced and expanded ACA marketplace subsidies, removing cost-sharing reduction payments, deleting the individual mandate, and altering the Medicaid expansion.

• The family glitch unintentionally inhibited some families from receiving care, but the Biden administration resolved this in 2022 via a rule.

• The enhanced and expanded ACA marketplace subsidies create opportunities for middle-class families who are over 400% of the poverty line.

• Cost-sharing reduction federal reimbursements were eradicated by the Trump administration.

• In early 2017, the Trump administration (for all practical purposes) ended the individual mandate, which had incentivized individuals to enroll in health insurance. While the mandate still exists on paper, the penalty is $0.

• Last, a Supreme Court ruling restricted the HHS from enforcing the ACA Medicaid expansion, leaving that optional for individual states.

Conclusion

We hope this article answered all your Affordable Care Act questions! At Fairdoc, we are here to inform you, assist you, and answer all your questions. If you have any inquiries for us, feel free to reach out, and stay tuned for future articles!