Affordable care act is a law that is enacted in the United States that provides the consumers with subsidies that lower costs for households with income between 100% and 400% of the federal poverty level. It was enacted by Obama in 2010.
It provides insurance facilities to uninsured Americans with pre-existing conditions. It extends its coverage to young adults. It expands coverage for early retirees. The rebuilding of primary care workforce. It also increases payments for rural health care providers.
Pros of the Affordable Care Act
- Introduction of subsidies
They offer subsidies to the public such as purchasing health insurance less expensive for those who qualify to make a lot of people to access the facility.
- No limits on lifetime benefits
Lifetime benefits have been banned and this makes it possible for the members of the public to benefit from the public services until the time they die and this makes many members not struggle.
- Dependents to stay under their parents’ plan for longer
This allows the parents to ensure their children under the plan up to the time they get stable in life is when they can be removed from the plan. It has been increased up to 26 years.
- Medicaid is more inclusive for many Americans
Medicaid coverage now includes Americans who are below 138% of the poverty level and this makes it possible for many Americans to enjoy the services from Medicaid.
- Insurance companies are not allowed to cancel policies due to a mistake on the application
Insurance companies do not have the authority to cancel anyone’s policy due to a mistake that was made during application and they cannot also deny the coverage because of a pre-existing condition.
- They offer free preventive care
Insurance companies are to offer free preventive and wellness visits made by the insured and this enables many people to go visits and confirm their health hence high life expectancy as they take precautions before the disease attacks an individual.
- Decent health insurance
Regardless of the presence of a chronic illness, everyone is able to get decent health coverage hence it does not discriminate anyone.
- Low tax rate
The tax that is imposed on the premiums is low so that the insured cannot lose more of his money hence this allows many people to pay for the premiums as it acts as a saving plan.
Cons of the Affordable Care Act
- The cost is still high for some people
Some people still find the cost of health insurance policies high for them as they do not qualify for the service making it difficult for them to take the cover.
- High tax penalties
Those who are not insured face high penalties and this makes many people suffer as they cannot enjoy the health services and this leads to high death rates.
- The companies do not sponsor their employees
Some companies find it expensive to pay for their employees the premiums and this makes them leave the employees to find their own insurance which may be costly to them.
- Smaller networks
Many insurance companies made their networks to be small since the enactment of the policy and this made them to only provide services to a few of their customers.
- Shopping for coverage is complicated for the Americans
As there are many websites and more options to choose from, it has become complicated for many people to find the appropriate coverage for themselves.
- Market uncertainties
The market has not yet stabilized and this makes many people not purchase for the premiums as they do not know the fate of the company in the market.
- Enrollment challenges
Many people find it a challenge to get enrolled in the scheme and this leaves them frustrated as they may not get the assistance when they require it.
Affordable care act is good and should be adopted by many countries as it protects the individuals who live below the poverty level and this may reduce the death rates in the countries hence the countries may develop economically.