Question

1.    Describe one of the provisions of the ACA that, in your opinion, is most significant. Explain why.

2.    Discuss pros and cons of the ACA.

Answer 1

Answer. The Affordable Care Act (ACA), also known as Obamacare, was signed into law in 2010. 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. One of most significant provisions of ACA in my opinion is. Low Income Subsidies: Individuals and families with an income less than 400% of the federal poverty level who purchase health insurance through an Exchange will be eligible for a subsidy from the government. The federal poverty level is based on the number of family members and state of residence. This will put tremendous pressure on the federal budget and create an argument for higher taxes. As has occurred numerous times in the past, actual costs will almost certainly exceed projections. Moreover, anytime the government subsidizes a program, its cost tends to increase. Just look at our university system and the staggering cost of a four-year programme. PROS of ACA 1. MORE AMERICANS HAVE HEALTH INSURANCE : More than 16 million Americans obtainedhealth insurance coverage within the first five years of the ACA. Young adults make up a large percentage of these newly insured people. 2.HEALTH INSURANCE IS AFFORDABLE FOR MANY PEOPLE :  Insurance companies must now spend at least 80 percent of insurance premiums on medical care and improvements. The ACA also aims to prevent insurers from making unreasonable rate increases. Insurance coverage isn’t free by any means, but people now have a wider range of coverage options. 3. NO TIME LIMITS ON MEDICAL CARE ; Before the ACA, some people with chronic health problems ran out of insurance coverage. Insurance companies set limits on the amount of money they would spend on an individual consumer. 4.People with Pre-Existing Health Conditions Can No Longer. Be Denied Coverage ; A pre-existing condition, such as cancer, made it difficult for many people to get health insurance before the ACA. Most insurance companies wouldn’t cover treatment for these conditions. They said this was because the illness or injury occurred before you were covered by their plans. 5. More Screenings Are Covered ; The ACA covers many screenings and preventive services. These usually have low co-pays or deductibles. The hope is that if you’re proactive in your healthcare, you can avoid or delay major health problems later. Healthier consumers will lead to lower costs over time. For example, a diabetes screening and early treatment may help prevent costly and debilitating treatment later. 6.Lower Prescription Drug Costs ; The ACA promised to make prescription drugs more affordable. Many people, particularly senior citizens, are unable to afford all their medications. CONS OF ACA : 1.Many People Have to Pay Higher Premiums : Insurance companies now provide a wider range of benefits and cover people with pre-existing conditions. This has caused premiums to rise for a lot of people who already had health insurance. 2.You Can Be Fined if You Do not Have Insurance ; The goal of Obamacare is for people to be insured year round. If you’re uninsured and don’t obtain an exemption, you must pay a modest fine. The fine is expected to increase over time. Some people think it’s intrusive for the government to require health insurance. ACA supporters argue that not having insurance passes your healthcare costs on to everyone else. 3.Taxes Are Going up as a Result of the ACA ; Several new taxes were created to help pay for the ACA, including taxes on medical device and pharmaceutical sales. Additional taxes were also created for people with high incomes. Funding also comes from savings in Medicare payments.

The wealthy are helping to subsidize insurance for the poor. Some economists, however, predict that in the long term, the ACA will help reduce the deficit and may eventually have a positive impact on the budget. 4.Enrolling Can Be Complicated ; The ACA website had a lot of technical problems when it was first launched. This made it difficult for people to enroll and led to delays and lower-than-expected signups. Many hospitals and public health agencies have set up programs to help guide consumers and business owners through the setup process. The ACA website also has sections devoted to explaining the procedures and available options. 5.Businesses Are Cutting Employee Hours to Avoid Covering Employees ; Opponents of Obamacare claimed the legislation would destroy jobs. The number of full-time jobs has gone up in recent years, but there are still reports of businesses cutting hours from employee schedules. Business with 50 or more full-time employees must offer insurance or make payments to cover healthcare expenses for employees. By reducing hours, businesses are able to get by the 30-hour-per-week definition of a full-time employee.