Question

Discuss Obama care deal!!

Answer 1

Obama Care Deal

President Barack Obama in 2010, signed The Affordable Care Act (ACA or “Obamacare”) with the goal of reducing the amount of uncompensated care the average U.S. family pays for medical treatments. Obamacare mandated everyone to have health insurance or pay a tax penalty. Too many Americans lack access to health care because of the high costs, and health insurance companies restrict access to necessary services. Obama care Act was made to overcome these problems.

The aim was to lower health care costs and to make it affordable to all people. Lower income groups are able to qualify for Obamacare subsidies, which are designed to make insurance more affordable. The ACA pays for its subsidies by taxing some health care providers and high-income families and thus making health care affordable to middle or lower income groups.Obamacare’s health care reform mandated most people (excluding those who qualified for a hardship or other exemption) to either have a health insurance, or face a fine.

Goals of Obama Care

Main goal include

1) Improve access to health insurance,

2) Protect patients against arbitrary actions by insurance companies and to guarentee the coverage if applied during open enrollement period.

3) Reduce the costs of health care.

With Obama Care, any new plan will cover a minimum of 10 standard Essential Health Benefits like maternity and newborn care, prescription drug coverage, paediatric services, ambulatory services, emergency services, hospitalization, mental health and substance use care, rehabilitation services, laboratory services etc.

Obama Care creates a minimum benefit levels for every plan. In 2014, a new metallic rating system was introduced which make it easier to determine the coverage taken by the individual. At least 60% of the total average estimated cost must be covered by the plan's benefit package. Platinum Package covers 90%; Gold Package covers 80%;  Silver Package covers 70% and Bronze Package covers 60%. Catastrophic Plan for people under the age of 30 may have lower benefit levels (less than 60%).

With ACA, medical history cannot be used to decline the application or to charge more for the health insurance. Coverage is guarenteed. ACA make sure that complicated questions about the past medical history is avoided and no need of lengthy waiting to get insurance. Also there is a possibility to receive premium tax credits.

New state Exchange or market places provides additional places for people to buy the coverage. In most states, there will be one open enrollment period per year where health insurance is guarenteed for those who are applying. If not insured for more than 3 months, the individual will receive a tax penalty unless having qualifying life events such as the loss of a job, a move to a new coverage area, the birth of a child, or the loss of existing coverage because of marriage, divorce, or turning 26 and no longer being able to stay on a parent’s plan.

There is a provision in the Obama Care which mandates parents to continue offering dependent coverage of adult children until their 26th birthday. Parents who do not offer coverage to dependent children are not required to offer coverage to young adults. This coverage is applicable even if the young adult is no longer living with a parent, is not a dependent on a parent's tax return, or is no longer a student. Both married and unmarried young adults can qualify for the dependent coverage extension. But, it's not applicable to the young adult's spouse or children.

ACA helps to offers limitless coverage and reduced the cost of medical care and made it affordable to low income.