Affordable Care Act Pros and Cons

You may be familiar with the Affordable Care Act under its better-known nickname of Obamacare.  The Affordable Care Act, which was signed in 2010 under the Obama Administration, is a law created to regulate health insurance practices. Public opinion about the Affordable Care Act has been split, and it has as many supporters as it has opposers. There are a number of advantages and disadvantages to this new legislation, so the divided reaction is unsurprising.

Why Was the Affordable Care Act Created?

The Affordable Care Act was created to ensure all Americans have access to a basic level of healthcare insurance. It was apparent to the government that many American citizens were putting off health check-ups and medical treatments because they were too expensive. The unemployed and low-income workers could not afford health insurance that would cover these treatments. Those with chronic illnesses, disabilities, or long-term health conditions were also not able to get health insurance, either because the premiums were too high or they were denied coverage. The Affordable Care Act seeks to ensure these people receive health insurance coverage and, therefore, medical treatment.

What Are the Advantages of The Affordable Care Act?

The main advantage of the Affordable Care Act is that many more Americans can afford healthcare. It extends health insurance to young adults, disabled people, and the unemployed. In the first five years of the Affordable Care Act, 16 million people were given health insurance through the Act.

People with pre-existing health conditions can now obtain health insurance and must receive coverage for their pre-existing condition. Before the Affordable Care Act, people with a pre-existing condition like cancer would be unlikely to receive health insurance, and if they did, they would not be covered for cancer treatments.

Another advantage of the Affordable Care Act is health insurance is more affordable. The Act places restrictions on rate increases and the costs of premiums. Insurance companies must also spend at least 80% of the insurance premiums on improvements and medical care rather than just keeping the profit. Insurance companies also cannot place a limit on the coverage they provide customers, allowing people with chronic conditions to receive the full care they need.

Not only is health insurance more affordable, but prescription drugs are more affordable thanks to the Affordable Care Act.

Another major advantage of the Affordable Care Act is that it places emphasis on the affordability of preventative services and check-ups. It is hoped that these regular screening services may catch illnesses early enough to deal with them before they become expensive or life-threatening.

The Disadvantages of the Affordable Care Act

Most of the opposition to the Affordable Care Act is related to the cost of providing this service. In order to provide this health insurance, new taxes have been introduced to afford the new insurance signups and provide the funding for the additional services. It is projected that in time, the Affordable Care Act will save money in terms of catching conditions early and increasing the overall health of the population. In addition, many insurance companies have increased the premiums of their other clients to offset the cost of the clients who are covered under the Affordable Care Act.

Many companies have also been making changes to offset the cost of covering employees they did not provide health insurance to before. The Affordable Care Act states that employers with 50 or more full-time employees must provide their employees with health insurance. The definition of a full-time employee according to this law is 30 hours a week. Many businesses have been changing the hours of their employees in order to be a small business that is not required to provide health insurance.