Thursday, 9 April 2015

OBAMA CARE – Advantages


What is ObamaCare?

ObamaCare is officially named as The Affordable Care Act (ACA) or The Patient Protection and Affordable Care Act (PPACA) for the US citizens signed into law on 23rd March, 2010 by President Barack Obama.

Main focus: To increase quality, availability and affordability of private and public health insurance to the people through its various provisions.

ACA betters the health insurance industries and healthcare Industry in America. ACA has made innumerable changes; Acceptable as well as controversial!


ADVANTAGES OF OBAMACARE:

ObamaCare (the Affordable Care Act) provides many benefits, especially for low and middle income families and businesses. Certain insurance market reforms have already taken effect.

1.       AFFORDABLE HEALTHCARE:
ACA has executed the 80/20 principle, which states health insurance companies must spend 80% of premium dollars on patient care, keeping profits and other costs limited to 20%. ObamaCare brings health care to people who cannot afford it.

2.       OVERALL COST REDUCTION:
ACA lowers overall health care costs by providing insurance for millions of citizens. This service helps the people before they need expensive emergency services.

3.       COVERAGE:
a)      ObamaCare Act compels all insurance plans to cover principal health benefits including treatment for mental health, addiction and chronic diseases. Screenings for diseases like diabetes and blood pressure are included. Benefits to women, annual well-women visits including gynaecological exams are wholly covered.
b)      There will no more be coverage discrimination due to gender bias.
c)       Any insurance company cannot deny anyone coverage for any pre-existing conditions, drop or raise premiums once a citizen fall sick.
d)      Lifetime and annual limits on coverage are eliminated.

4.       Children’s Insurance:
Added benefit is the child’s insurance. Parents can include their children up to the age of 26 in their own plan. Companies collect more premiums and hence receive more profit without higher costs for healthier individuals.

5.       Tax credit:
ACA provides tax credits for insurance to middle class. To make it easier, all states are required to set up insurance exchanges or use Federal government’s exchange.

6.       Medicaid:
ACA also expands Medicaid in 26 states to 138% of the Federal Poverty level, providing coverage to adults without children and giving Americans access to health care.

7.       Business Organisations:
a)      Businesses’ with over 50 employees must offer health coverage to its employees, but receive tax credits to help with the costs.
b)      Small businesses with less than 25 full time employees can get tax credits for up to 50% of their employees’ health insurance premium costs.


Each benefit, right and protection is a part of ObamaCare’s provisions. Changes are gradually falling in place. Everyone will benefit from this system. ObamaCare is helping millions of Americans without the health insurance access to affordable health coverage.

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