Affordable Care Act (Obama Care)
How the Affordable Care Act Effects United States Citizens
The overarching theme of my paper is the controversial topic of the Affordable Care Act. The Affordable Care Act (ACA), commonly known as Obama Care, is now open in the U.S. and means there are many new changes that exist in the health care policies. The problem with these health care policies is that many Americans don’t have any health care insurance, and this is a big problem. Those receiving and not receiving benefits fall into four segments of the population: Half receive insurance through an employer, one-third receives it through the U.S. Government, one-tenth of the population are individuals purchasing it themselves, and the uninsured comprise the remaining percentage. For those who receive insurance through their employers, the amount paid out of pocket is capped. Each of these people will also get free preventative care, in order to keep them healthy in the work place. Companies with over 50 employees must insure employees or pay a penalty (effective in 2015). Small businesses are encouraged to buy insurance, but are not forced too, and special marketplaces are set-up for them to buy the insurance and benefit from temporary tax breaks.
Another change is that insurers cannot inflate prices if an employee becomes sick also; Medicaid now covers prescription drugs and is expanded to cover more Americans. This covers poor adults who make less then $15,856 a year these people will be covered by private insurance plans, but each State’s governor and legislature may decide weather to be apart of the Medicade expansion. In the States that subscribe, the federal government will over almost all the costs. For those who live in a State that choses not to subscribe, alternative options exist. For example, to buy it individually at one of the Health Insurance marketplaces. These are virtual megamall of insurance companies competing for business. but therein the individual decides the amount of coverage and cost. There are four different levels of coverage:
Bronze: the least expensive
Silver: lower-mid expense
Gold: upper-mid expense
Platinum: most expensive
All plans cover hospital visits, doctor’s visits, maternity care, mental health and prescription drugs. Almost everything most of us need concerning medical care. The big advantage of buying at a marketplace is that the Federal Government will provide tax credits. If a family of 3 makes below $78,120 a year they are eligible for these credits, for example. In fact, the majority of people buying it will be eligible for tax credits. A new change is that these marketplaces operate under strict rules and must be fair. They must offer insurance to everyone including the sick. Also, unlike in the past, men and women will pay the same price. Prices for older people will come down, but prices for younger people will go up to help cover the cost. In order to help younger people, however, they can stay a parent’s plans until age twenty-six, and buy low budget catastrophic plans until the age of thirty. Insurance will still not be cheap; some people will be paying more but be getting more coverage because of it, with tax credits as well. Lastly, to the question many are asking; if people cannot be turned down or charged more, then why not wait to buy it until being sick or injured? One can only get coverage through certain enrollment periods and without insurance, the individual will be fined. In circumstances wherein an individual cannot afford insurance, then the government will pay for it and wave the penalty. Who pays for Obama Care?
Taxes will be paying for most of these changes, many of which are aimed at the health industry, in addition to taxes from the wealthiest of Americans. At the same time hospital and insurance companies participating will pay a little less. The Solution
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