Haitham MishalEngl 1A 0013Prof. Nathan Connolly 7 December 2017 Affordable Care ActWhat is the Affordable Care Act and is it going to succeed or fail? The affordable care act is a law passed by the Obama Administration in 2010. This piece of legislation was passed to make health insurance affordable and accessible for all Americans. A lot of people refer to the affordable care act as Obamacare due to the fact that it was passed when President Obama was in office. The affordable care act was a major milestone for the United States in health care reform.
It was the first time the United States passed a law that created a form of universal healthcare.There are many factors in the affordable care act that have a significant effect on Americans, and are a major part of the affordable care act. In this essay I will discuss these factors of the Affordable care act and show the effects of them whether they have positive or negative effects. One major change that came with the passing of the affordable care act was the issue of pre- existing conditions. Before the affordable care act, people with preexisting conditions, that tried to buy insurance would either be denied or would be given extremely high premiums. With the passing of the affordable care act now insurance companies that take part in the program are not allowed to deny these people coverage. Many citizens with pre-existing conditions were having trouble obtaining or keeping their health insurance before this act passed.
Under the Affordable Care Act, people with pre-existing conditions cannot be rejected, charged more, and insurance companies can’t refuse to pay for any condition before your coverage started (Healthcare.gov). More than 50 million people with pre-existing conditions have gained coverage through the new Pre-Existing Condition insurance plan (The White House). A healthcare epidemic has always existed in the United states, the amount of people that were uninsured to was very high. The affordable care act definitely lowered the uninsured rate. Although this is viewed as a major victory for the American people, there are also negative effects from this new law that is in favor of people with pre-existing conditions.
The downside to the pre- existing condition is that it is one factor that affects the rise in premiums in the insurance through the affordable care act. “Another more well-discussed consideration was that the passing of the ACA would lead to “skyrocketing” premiums. This was due to concerns over the large influx of lower income consumers and those at high risk of illness or with preexisting conditions (Penn bioethics journal pg.1}.
” For insurance companies to be profitable there has to be a certain ratio of people that are healthy and people that are sick. Forcing insurance companies to insure people with preexisting condition alternates this ratio and insurance companies become less profitable; and that’s the reason they are forced to increase premiums. “Health insurers are requesting the right in many states to increase premiums by upwards of 50% (Matthews).” If health insurers aren’t allowed to raise their premiums they eventually leave the affordable care act program. “In insurance, uncertainty often translates to higher premiums. When a firm isn’t sure what it will have to spend, it tends to build in a cushion (Baker). This is the reason a lot of people are skeptical about the rights of insurance of people with preexisting conditions, because the two that are affected negatively are the people that don’t have preexisting conditions, because their premiums are now higher, and the insurance companies who now have a lot more uncertainty with insurers that have pre existing conditions. Although the premiums are rising, there are also subsidies that are available for people with low incomes that cannot afford to pay their premiums.
“The Obama administration said Tuesday that 11.7 million Americans now have private health insurance through federal and state marketplaces, with 86 percent of them receiving financial assistance from the federal government to help pay premiums (Pear).” This is very important because if people didn’t receive subsidies then they probably won’t participate in the program, and the number of uninsured won’t decrease, it would probably increase.
Although there are still criticisms about these subsidies. Unfortunately, the way that people qualify for subsidies is inaccurate, meaning that they’re a lot of people that can’t afford health insurance through the exchanged but still don’t receive any subsidies. The main issue with the subsidies is that they are distributed according to the federal poverty line.
To be exact people that fall between 100-400% of the federal poverty line qualify for subsidies. The issue with this is that since it’s a federal poverty line, it’s the same poverty line for people living in areas that have a low cost of living and the people living in an area with high cost of living. One way to avoid this issue to stop following the federal poverty line and establish individual state poverty lines.
This would help people in states that offer higher wages but also have a higher cost of living, meaning that they need the subsidies just as much as the people in states with low wages but also a low cost of living. For example, the poverty line in the Bay Area is much higher than the poverty line in Ohio, because the cost of living in the bay area is extremely high. So, there would be a lot of people living in places that have high cost of living like the bay are they won’t qualify for these subsidies Also, there are people in the United States that receive these subsidies and don’t qualify, but receive them because they have hidden incomes. Increasing the premiums is a very serious and major problem to people who have preexisting conditions or people who do not have any insurance. Also, that would be very costly and depends on how severe their health condition but the affordable care act or Obamacare would deny the increase the prices of the premium and justify or balance out the problem by “Before the Affordable Care Act, most insurers could raise premiums without any explanation, spend much of your premium dollars on administration and profits, and deny or limit coverage to those with pre-existing conditions” (whitehouse.gov). This quote means that people who have preexisting conditions before Obamacare was very expansive. When Obamacare came in 2010, Obama said no to the increase of the premiums and wanted to keep the healthcare insurance the same price nor too high and nor too low just the same.
Nowadays healthcare is never improving due to the plans going so high. When you think about the health plans increase in insurance costs, it does not mean just for people who have preexisting conditions but the prices will also affect the number of households and that’s how the price will scale with ups and downs. “The Affordable Care Act forces insurance companies to play by the rules, prohibiting them from discriminating against anyone with a pre-existing condition, dropping your coverage if you get sick, billing you into bankruptcy because of an illness or injury, and limiting your annual or lifetime benefits” (whitehouse.
gov). According to the author, this quote means that the affordable care act forces the health insurances to not disobey the rule given by the United States congress and help the people with preexisting conditions by dropping the prices down. for example, if you have cancer, become sick or any other type of severe or non-severe health conditions.
I believe that this is the right thing to do because sometimes there are different types of health insurers do that by not following the rules and doing it their own way. On the white house website, the section or heading called “Making Care More Affordable” states that the new healthcare law is bringing down healthcare costs and making sure health care money earned are spent wisely. Thanks to the Affordable Care Act: about 2.5 million young adults have health insurance on their parent’s plan.
The President’s health plan gives hard-working, middle-class families the security they deserve. Health reform is already making a difference.The affordable care act or the patient protection law is a federal law which was issued by the 111th congress of the United States. It was passed and signed by President Barack Obama on March 23,2010. The affordable care act passed an act called the 1944 Public Health Act. The law generally keeps up the current structure of Medicare, Medicaid and managers’ market, however, the individual markets have been drastically updated around a three-leg conspire.
As you all know, an insurance premium is a sum paid intermittently to the reserve plan by the protection to cover the risk. Another term for exchange is the Health Insurance Marketplace which is a service available in every state that helps individuals, families, and small businesses shop for enrolling in affordable medical insurance. The Marketplace is accessible through websites, call centers, and in-person assistance When you fill out a Marketplace application, you’ll find out if you qualify to save money when you enroll in a medical insurance plan. You’ll also find out if you qualify for Medicaid and the Children’s Health Insurance Program (CHIP). Whether you qualify for these programs depends on your expected income, household members, and other information.The health insurance exchange can also be known as HIX, ObamaCare Exchange, Health Services Exchange, Health Care Exchange, Health Insurance Market and Affordable Insurance Scholarships. ObamaCare health insurance exchanges, or ObamaCare exchanges, are online health insurance markets.
States can build a health insurance exchange (HIX) on their own, join one or more states, make a joint exchange with the federal government or make sure that the federal government builds and manages the insurance exchange for them. ObamaCare health insurance exchanges allow all Americans who are above the poverty line to purchase health insurance through their providers through an online health insurance market. A health insurance exchange is a market for buying health insurance. The Affordable Care Act extends its health insurance coverage for the poorest Americans by making an open door for states to give Medicaid qualification, and it was on January 1, 2014, for people under 65 years old with earnings up to 133 percent of the government destitution level (FPL)..Out of the blue, states can give Medicaid health insurance coverage to low-salary grown-ups without kids and be ensured scope through Medicaid in each state without requirement for a waiver. Medicaid and Children’s Health Insurance Program (CHIP) qualification and enlistment will be substantially less difficult and will be facilitated with the recently made Affordable Insurance Exchanges.
In my opinion, I believe that the affordable care act is doing a very good job of trying to not increase the high prices on premiums. Also, if the health care law was not agreed by the United states congress then the affordable care act. No matter what, the insurance companies should allow follow the rules, it’s like if there is a law that says the healthcare must accommodate the people with preexisting conditions it is a must to obey the law.