What does the ACA require?

Asked by: Mrs. Jolie Torp  |  Last update: June 25, 2025
Score: 4.1/5 (32 votes)

A set of 10 categories of services health insurance plans must cover under the Affordable Care Act. These include doctors' services, inpatient and outpatient hospital care, prescription drug coverage, pregnancy and childbirth, mental health services, and more. Some plans cover more services.

What is a requirement of the Affordable Care Act?

The Affordable Care Act (ACA), also known as Obamacare, gives most uninsured people in the U.S. access to health insurance as long as they are U.S. citizens who live in the country or noncitizens who are lawfully present, not incarcerated, and not covered by Medicare.

What is required for ACA compliance?

What is ACA compliance? Businesses that are subject to the ACA must offer affordable health insurance that provides minimum essential coverage and minimum value to at least 95% of their full-time employees (including dependents).

What are the three main components of the Affordable Care Act?

The law has 3 primary goals:
  • Make affordable health insurance available to more people. ...
  • Expand Medicaid to cover all adults with income below 138% of the FPL. ...
  • Support innovative medical care delivery methods designed to lower the costs of health care generally.

What makes you ACA eligible?

Must live in the United States. Must be a U.S. citizen or national (or be lawfully present). Learn about eligible immigration statuses. Cannot be incarcerated in prison or jail.

ACA 101: A Comprehensive Guide to the Affordable Care Act

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What is the highest income to qualify for ACA?

In 2025, you'll typically be eligible for ACA subsidies if you earn between $15,060 and $60,240 as a single person. A family of four is eligible with a household income between $31,200 and $124,800.

What disqualifies you from the premium tax credit?

For tax years other than 2021 and 2022, if your household income on your tax return is more than 400 percent of the federal poverty line for your family size, you are not allowed a premium tax credit and will have to repay all of the advance credit payments made on behalf of you and your tax family members.

What is the ACA individual mandate?

The individual mandate was a provision within the ACA that required individuals to purchase what's known as "minimum essential coverage" or face a tax penalty, unless they were eligible for an exemption. Mandate supporters argued that a penalty would increase the number of people who had health insurance.

How much is Obamacare a month for a single person?

Monthly premiums for Affordable Care Act (ACA) Marketplace plans vary by state and can be reduced by premium tax credits. The average national monthly health insurance cost for one person on an Affordable Care Act (ACA) plan without premium tax credits in 2024 is $477.

What are the three pillars of ACA?

1 The 3 pillars of the Affordable Care Act (ACA): access, quality, and cost.

How to determine ACA eligibility?

To be eligible to enroll in health coverage through the Marketplace, you must:
  1. Live in the United States (U.S).
  2. Be a U.S. citizen or national, or be lawfully present non-citizen in the U.S. Learn about eligible immigration statuses.
  3. Not be incarcerated.

What is the 30 hour rule for ACA?

If an employee is credited with an average of 30 hours per week or more during the Standard Measurement Period, the employee would be eligible for benefits for the upcoming plan year. The Stability Period is the period of time that the employee cannot lose eligibility regardless of the hours he works.

What is the 98% offer method for ACA?

98% Offer Method. For employers to be eligible to use the 98% Offer Method, the employer must: Offer MEC to at least 98% of its full-time employees (and their dependents) for all months in which they were employees and not in a waiting period.

What is mandated by the Affordable Care Act?

Most coverage must now include Essential Health Benefits (EHBs). No more annual dollar limits on coverage for EHBs. No more lifetime limits on EHBs. Insurance companies have to spend at least 80% of your premium dollars on actual medical expenses, not overhead and profit.

What is one requirement of the Affordable Care Act answers?

The Affordable Care Act (ACA) requires most Americans to have qualifying health insurance called "minimum essential coverage." Under the ACA's individual shared responsibility provision (also known as the "individual mandate"), most Americans must maintain minimum essential coverage.

What is the compliance of the Affordable Care Act?

A mandate that employers with 50 or more full-time employees offer affordable, essential coverage to at least 95 percent of full-time employees and their dependents. Provisions for insurance premium subsidies for certain low- and middle-income households.

What are the pros and cons of the Affordable Care Act?

The pros of the ACA include prohibiting insurance companies from denying coverage based on health history and providing subsidies to reduce premiums and out-of-pocket costs. The cons of the ACA include small business challenges and limited provider options in some regions.

What is the average deductible for Obamacare?

KFF also reported the average 2024 deductible for marketplace plans sold via HealthCare.gov, (combined for medical and prescription drugs) by metal rating: $7,258 for Bronze plans, $5,241 for Silver plans, $1,430 for Gold plans, and $97 for Platinum plans.

What states have an ACA mandate?

Which states have an Individual Mandate?
  • California.
  • D.C.
  • Massachusetts.
  • New Jersey.
  • Rhode Island.
  • Vermont (but there's currently no financial penalty attached to the mandate)

What is a lifetime limit?

A cap on the total lifetime benefits you may get from your insurance company.

What is the IRS penalty for no health insurance?

The Tax Cut and Jobs Act (TCJA) repealed the penalty (made the penalty amount $0) starting with tax year 2019. But you may wonder, “Do I need health insurance to file taxes after the ACA penalty was repealed?” The answer is no. You no longer will be penalized for not having health insurance.

How can I avoid paying back my premium tax credit?

Report any changes in your income during the year to the Marketplace, so your credit can be adjusted and you can avoid any significant repayments at the end of the year.

What is the maximum income to qualify for premium tax credit?

The premium tax credit is available to individuals and families with incomes at or above the federal poverty level who purchase coverage in the ACA marketplace in their state. Through the end of the 2025 coverage year, there is no maximum income limit for the premium tax credit.

Can I refuse health insurance from my employer and get Obamacare?

Obamacare is available to everyone, whether or not their employers offer insurance. From a practical standpoint, though, there are financial consequences to doing this. Often, an employer subsidizes part or all of their employees' coverage.