What is the downside of the Affordable Care Act?

Asked by: Hortense Ernser  |  Last update: December 25, 2023
Score: 4.4/5 (55 votes)

… their premiums go down and some seeing them go up, and the majority of Americans seeing higher deductibles, higher copays, and a smaller pool of providers

Is the Affordable health care Act good or bad?

Since its enactment on March 23, 2010, the Affordable Care Act has led to an historic advancement of health equity in the United States. This landmark law improved the health of all Americans, including women and families, kids, older adults, people with disabilities, LGBTQI+ and communities of color.

Why is the Affordable Care Act failing?

Not only did the ACA fail to control the rising cost of insurance, but it also failed to make health care and prescribed medicines affordable. According to a West Health and Gallup, 30 percent of surveyed individuals did not seek needed medical treatment due to the cost from September to October 2021.

What are at least two benefits of the Affordable Care Act?

Make affordable health insurance available to more people. The law provides consumers with subsidies (“premium tax credits”) that lower costs for households with incomes between 100% and 400% of the federal poverty level (FPL). Expand the Medicaid program to cover all adults with income below 138% of the FPL.

Who benefits most from the Affordable Care Act?

People with the lowest incomes tended to benefit the most from the law. That makes sense, given how the Affordable Care Act is designed. In states that expanded Medicaid, low-income people can get insurance without having to pay a premium.

Obamacare Explained: Understanding the Affordable Care Act

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What is the difference between Obamacare and the Affordable Care Act?

“Obamacare” and the “Affordable Care Act” are the SAME thing. A recent article in the New York Times reported survey results showing that one-third of the people surveyed did not know that “Obamacare” and the “Affordable Care Act” refer to the same law. So? Even more people – more than 60 percent!

How much does Affordable Care Act cost taxpayers?

The CBO originally estimated that Obamacare would cost $940 billion over ten years. That cost has now been increased to $1.683 trillion.

How well is the Affordable Care Act working?

Has it improved coverage? Indisputably, yes. More than 20 million people have gained coverage as a result of the ACA. It has dramatically reduced the uninsured rate.

Did the Affordable Care Act save money?

Yet the ACA has more than delivered on that promise, saving about $4,000 per family. And these lower health care premiums probably contribute to the recent rise in workers' wages.

Why are Affordable Care Act plans so expensive?

Health insurance obeys the same economic laws as other products: barriers to entry lead to insufficient competition, fewer choices and higher prices. “Insurance premiums … respond strongly to competition, and markets with more insurers have substantially lower premiums,” economist Martin Gaynor wrote in 2020.

What are 3 benefits of the Affordable Care Act?

Affordable Care Act (ACA) basics

Among other things, the ACA made it easier for many people to get coverage, removed annual and lifetime limits on essential health benefits and put in place requirements that individuals have medical coverage or pay a tax penalty.

How many lives has Obamacare saved?

The Affordable Care Act's (ACA) expansion of Medicaid to low-income adults is preventing thousands of premature deaths each year, a landmark study finds. It saved the lives of at least 19,200 adults aged 55 to 64 over the four-year period from 2014 to 2017.

What are ethical issues with the Affordable Care Act?

The recently enacted Affordable Care Act (PPACA) of 2010 has fueled ethical debate of several important controversial topics. Ethical issues of health care reform include moral foundations, cost containment, public health, access to care, ED crowding, and end-of-life issues.

What problems did the Affordable Care Act address?

  • The ACA protects people with preexisting conditions from discrimination. ...
  • Medicaid expansion helped millions of lower-income individuals access health care and more. ...
  • Health care became more affordable. ...
  • Women can no longer be charged more for insurance and are guaranteed coverage for services essential to women's health.

How does the Affordable Care Act affect the economy?

The ACA's deficit-reducing effects will grow over time. CBO estimates that over the decade from 2023 through 2032, the ACA will reduce the deficit by an average of 0.5 percent of GDP each year, corresponding to total deficit reduction of nearly $1.6 trillion over that ten-year period.

Is the Affordable Care Act expensive?

Affordable Care Act (ACA) health plans require you to pay a monthly premium, which may be reduced by a premium subsidy — also called a premium tax credit. New legislation means that 4 out of 5 people in the 2023 coverage year will be able to find a plan on the marketplace for $10 or less per month.

How many people does the Affordable Care Act affect?

As of early 2023, the report finds that more than 40 million Americans have coverage under the ACA, the highest total on record.

What would make the Affordable Care Act better?

Making Insurance Premiums More Affordable

ensure through 2025 that no one has to spend more than 8.5 percent of household income on premiums; previously, eligibility for premium tax credits was capped at 400 percent of the federal poverty level (i.e., $106,000 for a family of four)

Is the Affordable Care Act financially sound?

A review of the research literature on the effects of the ACA indicates that the law helped protect Americans against the financial risks of illness, reduced the uninsured rate, improved access to care, and lowered out-of-pocket spending.

Does the Affordable Care Act raise taxes?

To raise additional revenue for reform, the ACA imposed excise taxes on health insurers, pharmaceutical companies, and manufacturers of medical devices; raised taxes on high-income families; and in-creased limits on the income tax deduction for medical expenses.

Who pays Obamacare taxes?

The 3.8% ACA tax on net investment income applies to unincorporated taxpayers (basically individuals, estates, and certain trusts) who have a modified adjusted gross income (MAGI) above these annual income levels: $250,000 in the case of married taxpayers filing a joint return or a surviving spouse.

What are the income limits for the Affordable Care Act 2023?

In 2023, you'll typically be eligible for ACA subsidies if you earn between $13,590 and $54,360 as an individual, or between $27,750 and $111,000 for a family of four. For most people, health insurance subsidies are available if your income is between 100% and 400% of the federal poverty level (FPL).

What is the Affordable Care Act called now?

The comprehensive health care reform law enacted in March 2010 (sometimes known as ACA, PPACA, or “Obamacare”).

What happens to the ACA subsidy when one person goes on Medicare?

You are not required to cancel your exchange plan when you enroll in Medicare, but if you're getting premium subsidies, they'll end when you become eligible for premium-free Medicare (with some flexibility in terms of the exact date for this, as described below).