A Brief Overview of Obamacare Also Known As the Patient Protection and Affordability Care Act
Obamacare is also known as the Patient Protection and Affordable Care Act (PPACA).
You may also have heard it referred to as the federal health care law.
The Patient Protection and Affordable Care Act was signed into law on March 23 2010.
Many of it's provisions will be implemented over a period of time beginning in 2010 and ending in 2020.
As the PPACA is very extensive this is a general overview highlighting the major points of Obamacare.
The purpose of the PPACA is to ensure that all Americans have access to quality and affordable health care and to contain rising health care costs.
The PPACA seeks to do this by reforming health insurance.
There are nine titles in the act.
Each title addresses a specific component of reform.
In order to achieve this goal there are various provisions of the act that are to be implemented over a period of time.
Some provisions began in 2010 when the bill was signed into law.
Other provisions will go into effect up through 2020.
Here is a summary of some of the key elements of PPACA: •All individuals who are not already covered by an employer sponsored health plan, Medicare or Medicaid, must purchase a health insurance plan or pay a penalty.
This is also known as the individual mandate •All new individual health insurance plans offered by 2014 must be guaranteed issue.
Guaranteed issue means a health insurance policy must be offered to anyone regardless of pre-existing condition or gender and must be offered at the same premium.
•Health insurance exchanges will be created in each state.
Exchanges are where individuals and small employers can compare and purchase health insurance policies.
States may choose to opt out and there will be a federally regulated multistate plan (MSP) insurer available to all states.
States may also apply for a waiver if they have an alternative health care plan that meets certain criteria.
•There are mandates, subsidies and tax credits for individuals and employers in order to increase the health care coverage rate.
•Small businesses may be eligible for subsidies if they purchase insurance on the exchange.
•Businesses that do not offer their employees insurance and employ more than 50 people may pay a shared responsibility requirement if the government subsidizes an employee's health care.
•Medicaid eligibility is increased for individuals and families with incomes up to 133% of the federal poverty level.
However the supreme court allowed states to opt out of the Medicaid expansion (There will be a coverage gap for these people in the states that opt out).
•Annual and lifetime coverage caps on health insurance plans will be eliminated.
•There will be a restructuring of Medicare reimbursement from "fee-for-service" to "bundled payments".
•Children can continue to be covered under their parents' health insurance plans until age 26.
•Closing of the Medicare Part D prescription drug plan coverage gap or 'donut hole' by 2020.
(Note: coinsurance will be reduced to 25% between the deductible and the catastrophic phase.
)
You may also have heard it referred to as the federal health care law.
The Patient Protection and Affordable Care Act was signed into law on March 23 2010.
Many of it's provisions will be implemented over a period of time beginning in 2010 and ending in 2020.
As the PPACA is very extensive this is a general overview highlighting the major points of Obamacare.
The purpose of the PPACA is to ensure that all Americans have access to quality and affordable health care and to contain rising health care costs.
The PPACA seeks to do this by reforming health insurance.
There are nine titles in the act.
Each title addresses a specific component of reform.
In order to achieve this goal there are various provisions of the act that are to be implemented over a period of time.
Some provisions began in 2010 when the bill was signed into law.
Other provisions will go into effect up through 2020.
Here is a summary of some of the key elements of PPACA: •All individuals who are not already covered by an employer sponsored health plan, Medicare or Medicaid, must purchase a health insurance plan or pay a penalty.
This is also known as the individual mandate •All new individual health insurance plans offered by 2014 must be guaranteed issue.
Guaranteed issue means a health insurance policy must be offered to anyone regardless of pre-existing condition or gender and must be offered at the same premium.
•Health insurance exchanges will be created in each state.
Exchanges are where individuals and small employers can compare and purchase health insurance policies.
States may choose to opt out and there will be a federally regulated multistate plan (MSP) insurer available to all states.
States may also apply for a waiver if they have an alternative health care plan that meets certain criteria.
•There are mandates, subsidies and tax credits for individuals and employers in order to increase the health care coverage rate.
•Small businesses may be eligible for subsidies if they purchase insurance on the exchange.
•Businesses that do not offer their employees insurance and employ more than 50 people may pay a shared responsibility requirement if the government subsidizes an employee's health care.
•Medicaid eligibility is increased for individuals and families with incomes up to 133% of the federal poverty level.
However the supreme court allowed states to opt out of the Medicaid expansion (There will be a coverage gap for these people in the states that opt out).
•Annual and lifetime coverage caps on health insurance plans will be eliminated.
•There will be a restructuring of Medicare reimbursement from "fee-for-service" to "bundled payments".
•Children can continue to be covered under their parents' health insurance plans until age 26.
•Closing of the Medicare Part D prescription drug plan coverage gap or 'donut hole' by 2020.
(Note: coinsurance will be reduced to 25% between the deductible and the catastrophic phase.
)
