Affordable Care Act (ACA)

Service Description

The Affordable Care Act (ACA), commonly known as "Obamacare," is a comprehensive health care reform law enacted in March 2010. Its primary goals are to enhance the quality and affordability of health insurance, reduce the number of uninsured individuals, and decrease healthcare costs for both individuals and the government. Key provisions include: Individual Mandate Originally required most Americans to have health insurance or pay a penalty, although this was effectively nullified in 2019 when the penalty was reduced to $0. Health Insurance Marketplaces State-based and federal online exchanges where individuals can compare and purchase health insurance plans. These marketplaces offer subsidies to help lower-income individuals afford coverage. Medicaid Expansion Expanded Medicaid eligibility to cover more low-income individuals. This provision was made optional for states by a 2012 Supreme Court decision. As of 2021, 38 states and Washington D.C. have adopted the expansion. Consumer Protections Introduced several protections, including: Prohibiting insurance companies from denying coverage or charging higher premiums based on pre-existing conditions. Eliminating lifetime and annual coverage limits. Allowing young adults to stay on their parents' insurance plans until age 26. Essential Health Benefits Mandated that all insurance plans sold on the marketplaces cover a set of essential health benefits, such as: Emergency services Maternity and newborn care Mental health services Prescription drugs Preventive services Preventive Care Required insurance plans to cover certain preventive services without charging a copayment or coinsurance, even if the deductible has not been met. These services include screenings, immunizations, and contraceptives.