Affordable Care Act
The introduction of the Affordable Care Act in March of 2010 made massive changes to the way health insurance operated in the United States. The insurance marketplace didn’t officially open until October 2013, offering the first ‘Obamacare’ plans in the country. The ACA, as the affordable care act is named, brought along as much confusion as it did changes to the healthcare system.
With so many terms, acronyms, and new rules to contend with, how does the everyday American sort through all of it and understand how it applies to them? Well, Insuraway is here to lend a hand, one confusing health insurance term at a time. It’s time to take control of your health insurance journey with insurance terms explained in your words, starting with Obamacare.
What is the ACA?
You can’t tackle the word ‘Obamacare’ without first going over the ACA, a monumental act signed by President Obama in 2010. Named the Affordable Care Act, its number one goal was to protect American consumers from some of the worst practices of the health insurance company, like denying health care to those with pre-existing conditions. It also sought to provide health care to millions of Americans who had no access to health care or simply couldn’t afford it.
Once the act was signed it protected Americans with certain protections that were equally enforced on all insurance companies. It then focused on improving the quality of insurance and healthcare as well as lowering costs overall, the rising cost of medical care in the United States, a long-held concern among politicians and consumers alike.
The final step in the act was to ensure access to all the benefits that the Act had changed for citizens, and in that process, the marketplace was born. The marketplace was the way the ACA was delivered and enforced. For a carrier to offer their plan on the marketplace, they were required to follow all the rules laid down by the ACA and offer twelve essential benefits in every plan to ensure quality care and reasonable access to everyone. Learn more about the twelve essential benefits of all marketplace plans here.
What’s Obamacare?
When Trump was in office, he was famous for saying that ‘Obamacare’ was dead. This would imply that he had completely removed the laws and protections afforded by the ACA to American citizens. While changes have occurred since its inception in 2010, the act is very much still alive and well. But there are changes that you should be aware of that effect Americans.
Limited Advertising and Outreach
During the Obama administration, there was a large budget to advertise and promote the marketplace so Americans who were under or uninsured would have access to healthcare. During the Trump administration, this budget was cut and the annual enrollment period was cut in half.
Subsidies Have Been Cut
Initially, the government provides subsidies to insurance companies to offset a loss in profit when the ACA first rolled out. This encouraged as many insurance companies as possible to place their offerings on the marketplace, ensuring competition to push rates lower and lower. The Trump administration repealed these benefits, curing the subsidies to the insurance companies entirely.
Expanded Lower Cost Insurance
While insurance was required for all citizens under Obamacare, less they pay a penalty at tax time, the Trump Administration eliminated this mandate, to the relief of many Americans. Those wishing to remain without insurance can legally do so now, without any penalty.
What Remains The Same?
Despite the minor changes made by the next presidential team in office, the ACA and Obamacare remain alive and well, still enacting and offering the following benefits to all who utilize the Marketplace.
Coverage for Preexisting Conditions
One of the large selling points of the ACA for consumers was that those with preexisting conditions could no longer be denied coverage or care based on their previous health problems.
The Requirement of 12 Essential Benefits
In order for an insurance company to offer their services on the marketplace, they have to offer 12 benefits in every plan, no matter the tier or cost:
- Ambulatory Services (Outpatient Care)
- Emergency Services
- Hospitalization
- Pregnancy, Maternity, and Newborn Care
- Mental Health and Substance Abuse Services
- Prescription Drugs
- Rehabilitative and Habilitative Services
- Laboratory Services
- Preventive Care Benefits
- Pediatric Services
- Breastfeeding Benefits
- Birth Control Coverage
Subsidies and Tax Credits for Those Who Qualify
Those who qualify based on income, dependents, and other qualifications are still entitled to substantial subsidies and tax credits to lower their cost of health insurance if they purchase through the marketplace.
Obamacare and The Affordable Care Act: One in the Same
Health Insurance is confusing to even the experts, but you can make your health insurance journey a little simpler by remembering that Obamacare, the ACA, and the Marketplace are all essentially the same thing providing you the same services.
Still have questions about Obamacare and the marketplace? Insuraway is here to guide you through every step of the process, no matter how many questions you have. Call us at 1-800-763-4167 to find out more.
*The views expressed in this article do not represent any political opinions or affiliations.
