The Patient Protection and Affordable Care Act, commonly known as Obamacare, is a federal law passed in 2010. Its implementation began in 2012. The bill aimed to expand access to insurance coverage and reduce costs for all Americans.
The ACA has been controversial since it was signed into law by former President Barack Obama. One of its most important provisions was the individual mandate, which required people to buy health insurance if they didn’t have it through their employer or another public or private program like Medicare or Medicaid. This mandate was removed in 2017.
Another key provision is the premium tax credit subsidy, which helps low-income Americans pay for coverage on the healthcare marketplace exchanges set up by the ACA. People who make between 100% and 400% of the federal poverty level are eligible for subsidies that lower their monthly premiums.
A Deeper Look
The Patient Protection and Affordable Care Act (ACA) is a complex law that contains many provisions. Some of these provisions have been implemented, while others are still being debated in Congress. In addition, some parts of the law have been repealed by Congress or overturned by courts.The includes the individual mandate mentioned above.
The ACA includes both those who have private insurance plans through their employer and those who purchase their own coverage on an exchange (or marketplace). It also impacts people who qualify for Medicaid or Medicare programs as well as individuals who don’t have insurance.
The Employer Mandate
The Affordable Care Act aimed to make health insurance accessible to every American citizen so no one was uninsured. One key feature was the employer mandate.
The employer mandate dictated that employers provide their employees with health plans if they have 50 or more full-time workers who work at least 30 hours per week on average across 12 months. The law also provided tax credits for small businesses buying group plans through exchanges set up by states.
The Premium Tax Credit Subsidy
Health Insurance has always been expensive, and the ACA sought to make it easier for Americans to afford it. Another key provision of the bill was the premium tax credit subsidy. This helped low-income Americans pay for coverage on the healthcare marketplace exchanges set up by the ACA.
This subsidy is available to people who make between 100% and 400% of the federal poverty level (FPL). For example, if you’re a single person and made $26,500 per year or less in 2019, then you may be eligible for this type of assistance. The exact amount depends on your income, family size, and where you live. You can use this calculator to see what kind of subsidy you might qualify for: https://www.healthcare.gov/calculator/.
The Marketplace
We can’t discuss Obamacare within discussing the marketplace. The ACA created a commonplace for Americans to purchase affordable health insurance with tax subsidies to offset premium costs. This was called the marketplace.
All insurance companies who list policies on the marketplace must follow certain rules, including the coverage of pre-existing conditions.
Insuraway Can Help You Understand The ACA
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