Unbiased Facts on ObamaCare (the Affordable Care Act), Health Care Reform, and the Health Insurance Marketplace.
Obamacare Facts provides unbiased information on ObamaCare (the Affordable Care Act), health care reform, and the health insurance marketplace.
The Affordable Care Act (ACA), officially called The Patient Protection and Affordable Care Act (PPACA), is a US law that reforms both the healthcare and health insurance industries in America. The law increases the quality, availability, and affordability of private and public health insurance to over 44 million uninsured Americans through its many provisions which include new regulations, taxes, mandates, and subsidies. The law also works to curb the growth in healthcare spending in the US which has been rising at an unsustainable rate, among other things.ObamaCare is the unofficial name for the Patient Protection and Affordable Care Act (PPACA), although it’s sometimes called the Affordable Care Act (ACA) for short.
Get more ObamaCare Facts.
What Does ObamaCare Do?
Let’s take a look at some of the specific things ObamaCare does to reform the American healthcare system and how these reforms can benefit you, your family, and your business.
First off, ObamaCare includes new benefits, rights and protections that:
• Prohibit insurance companies from dropping your coverage if you get sick or make an honest mistake on your application.
• Let young adults stay on their parent’s plans until 26.
• Close the Medicare Part D ‘donut hole’ and keep Medicare strong for years to come.
Secondly, ObamaCare includes provisions to expand coverage and make it more affordable by:
• Creating Health Insurance Marketplaces where low-to-middle income americans can compare plans and get lower costs on health insurance. There are three ways to get lower costs on the marketplaces: Tax Credits for lower premiums, Cost Sharing Reduction subsidies for lower out-of-pocket costs, and Medicaid. Cost assistance is only offered through your state’s marketplace, or on the official Health Insurance Marketplace HealthCare.gov.
• Expanding Medicaid to 15.9 million Americans to help “cover the gap” between those who qualify for cost assistance through the marketplace and those who qualified for Medicaid under previous Medicaid guidelines.
• Mandating large employers to provide coverage via the employer mandate and providing tax credits for small businesses who offer their workers coverage via the Small Business Health Options Program (SHOP).
In return for the new benefits and expanded coverage:
ObamaCare mandates that everyone who can afford it must obtain and maintain health insurance (known as minimum essential coverage) throughout the year starting in 2014, get an exemption, or pay a per-month fee on their year end Federal income taxes.
Coverage can only be obtained during an annual open enrollment period. Annual open enrollment periods very by insurance type.
We’ve only just scratched the surface:
In the years since it’s become a law, the Affordable Care Act has already made a big difference in our country by providing new rights and protections to more than 100 million Americans and has helped to reduce the uninsured rate.
The above is only a portion of what the law does. See other new benefits, rights and protections, get a summary of each provision in the Patient Protection and Affordable Care Act, read the Full text of the Affordable Care Act for yourself, or browse our site to find out more about the countless other things ObamaCare does.
Who is ObamaCareFacts.com?
ObamaCare Facts is an unbiased, independent, grassroots, informational website created by two guys sick of trying to dig through the talking points to get to the facts. We have no political funding or agenda. We are open to any and all contributions from the public and have made it a goal to continually increase community involvement. The quality of information on this site is important to us, if you feel any information is inaccurate, misleading, or is missing, just let us know.
Please help us educate the everyone on health care reform by spreading the facts on the Affordable Care Act and the Health Insurance Marketplace. What is the Health Insurance Marketplace?
Why Is It Called ObamaCare?
The Patient Protection and Affordable Care Act was nicknamed “ObamaCare” due to it being promoted by President Barack Obama. The term started becoming common back in 2009 (before the final legislation was even in place) and was widespread by the time the law was signed on March 23rd, 2010.
Although it was originally used as a pejorative term meant to pit opponents of the President against the law, it has since been embraced by the President and supporters of health care reform. When polled more people support the Affordable Care Act than ObamaCare, despite them being the same thing.
Like “HillaryCare” in the 90’s or “RomneyCare” in Massachusetts, “ObamaCare” is a simple name for a complex issue. Get more Obamacare Facts on health care reform under the Affordable Care Act.
The History of ObamaCare
The concept behind ObamaCare was an individual mandate to obtain insurance, coupled with subsidies for private insurance. The concept was first put forth by The Heritage Foundation, a politically conservative think tank. Their idea was that this was an acceptable alternative to the single-payer initiative, “Medicare for All,” being proposed by the Clinton Administration. Since that time health care reform was proposed and expanded upon by both parties until it was implemented in Massachusetts by then-Governor Romney. During the 2008 elections, health care reform became a major plank on the platform of the Democratic party.
The Patient Protection and Affordable Care Act
When Barack Obama became president he began trying to pass the 2009 with the Affordable Health Care for America Act. This was followed by The Patient Protection Act, which culminated into the Patient Protection and Affordable Care Act 2010 (PPACA), or for short, “the Affordable Care Act” (ACA). After several changes, President Barak Obama signed the Affordable Care Act into law on March 23, 2010.
The Health Care and Education Reconciliation Act
Other, less-discussed aspects of ObamaCare are the health care related sections of the Health Care and Education Reconciliation Act of 2010 and the Student Aid and Fiscal Responsibility Act, which were signed into law along with the Patient Protection and Affordable Care Act. The PPACA itself also includes amendments to many existing U.S. laws and includes new rules and regulations called for by the law but written afterwards.
Does ObamaCare Require Me to Purchase Health Insurance?
You must obtain and maintain minimum essential coverage throughout the year, get an exemption, or face a tax penalty for each month you go without coverage. In the individual and family market major medical coverage that counts as minimum essential coverage can only be purchased during open enrollment. Open enrollment for 2015 is Nov 15, 2014 through Feb 15, 2014.
In most cases if you already have health insurance you like, you can keep it (although some plans are being phased out by 2017, see grandfathered health plans). For many low to middle income Americans, insurance is more affordable due to cost assistance and Medicaid Expansion. However, those making above 400% of the federal poverty line may find themselves paying more for coverage and may want to see private health plan options out-side of the marketplace. Regardless of what you pay we all enjoy the new benefits, rights, and protections offered by Obamacare.
Open Enrollment Under the Affordable Care Act
Under the Affordable Care Act most private insurance must be obtained during the marketplaces annual open enrollment period. Open enrollment periods protect insurers from folks simply waiting until they get sick to be covered and helps enforce the mandate and keep premium costs down. You won’t be able to get most types of private coverage outside of open enrollment without qualifying for a special enrollment period. Other insurance types like Medicaid and CHIP (which is 365) have unique open enrollment periods.
To comply with the law for 2014 you needed to get coverage that started by May 1st, 2014 to avoid the fee. Open enrollment for 2015 starts November 15th, 2014 and ends February 15th, 2014.
If you miss the annual open enrollment period, you may still have options. Individuals may qualify for special enrollment period outside of open enrollment if they experience certain qualifying life events. Learn what to do if you missed the ObamaCare deadline.
ObamaCare Doesn’t Create Insurance
ObamaCare (The Affordable Care Act) doesn’t create private or public health insurance, it expands and improves public health insurance options like Medicaid and Medicaid. The ACA also creates a subsidized and regulated marketplaces where Americans can buy private health insurance using group buying power.
Although the expansion of Medicaid and cost assistance (both of which are subsidized by taxpayers) have gotten some criticism for being “hand outs to those who don’t want to work,” that criticism is mostly unfounded. The truth is, most of the newly insured will be working poor families who couldn’t previously afford health insurance and those with pre-existing conditions who were previously “uninsurable” or priced out of insurance. Those who don’t want to, or can’t work already have access to Medicaid in most cases. It’s myths and half truths like these that inspired us to create this facts site.
ObamaCare Health Insurance Exchanges (Marketplaces)
Under the Affordable Care Act, every legal resident of the United States of America will be able to shop for health insurance in their State’s online Health Insurance Marketplace (sometimes known as a exchange). The “ObamaCare Exchanges” are online marketplaces where Americans can shop for regulated health insurance and low-to-middle income Americans can get cost assistance.
Using the marketplace any American can research every available policy and choose the right one for them and their family. The cost of your health insurance through the marketplace depends on your income, so only those making less than 400% of the Federal poverty level will be able to use cost assistance to obtain free or low cost health insurance. If you have access to affordable employer based coverage you won’t be able to get cost assistance. If you are eligible for Medicare, you can’t buy a private insurance policy and won’t use the marketplace to get coverage.
HealthCare.Gov is the official Health Insurance Marketplace. Make sure to shop during open enrollment for cost assisted coverage that will protect you from the per month fee for not having minimum essential coverage.
Marketplace Health Plans
There are four types of “metal plans” (bronze, silver, gold, and platinum) available on the marketplace as well as a catastrophic plan for those under 30 and those who had their plan canceled due to the ACA. You can also use the marketplace to sign up for Medicaid and CHIP. Medicare and other health insurance programs are signed up for separately. You can still buy private insurance through a broker or direct from a provider. See how to buy health insurance for more details on your options for obtaining coverage in 2014 or check out our guide to sign up for health insurance to find out your sign up options.
What Will ObamaCare Cost Me?
ObamaCare (the Affordable Care Act) contains new taxes including a fee for not obtaining insurance, as well as tiered cost assistance based on income. For those who get cost assistance their coverage will cost between 0%-9.5% of their income for the cheapest plan. Folks without access to cost assistance may end up paying more, in part due to ObamaCare’s new rights and protections, and in part due to the ever rising costs of premiums.
The bottom line is that while the ACA aims to give more people access to affordable, quality health insurance and it succeeds in many ways, but that doesn’t mean everyone will pay less. In general the less you make, the less you pay. Regardless of if you will pay more or less, the quality of health insurance you receive has new, benefits, rights and protections making it a better quality health health insurance. After all, what good is health insurance that drops you when you get sick, drops you when you use too much, or denies you for being sick in the first place?
As for our costs as a country and cost beyond health insurance, the Affordable Care Act does address the growing cost of health care, but it’s main focus is on reforming and expanding health insurance. Unless we as a nation address the root causes of health care costs a meaningful way the costs and taxes associated with healthcare will continue to put a burden on Americans, regardless of the law. Check out our health care facts to understand more about why we need to reform not only health insurance, but health care spending.
ObamaCare Medicare Reforms
ObamaCare cuts $716 billion (gross) in Medicare and Medicare Advantage related spending and reinvests it back into both Medicare and other aspects of the Affordable Care Act.
The Affordable care Act does more than just make cuts to Medicare, it provides a wide array of improvements for seniors. Some major reforms include closing the Medicare Part D “donut hole” and providing better quality preventive services to seniors. Read More On Obamacare and Medicare and How it affects seniors.
ObamaCare Medicaid Reforms
ObamaCare Medicaid Expansion expands Medicaid to 15.9 million of our nation’s poorest, including 9 million children by means of expanding CHIP (Children’s Health Insurance Program). However, this aspect of healthcare reform is in jeopardy in some states due to the states’ ability to opt out of Medicaid expansion. Twenty-four States have already opted out of Medicaid expansion leaving 5.7 million Americans without proper healthcare. Find out more about ObamaCare Expanding Medicaid.
ObamaCare Repeal Attempt Changes the Law
The Republican Party has tried to repeal ObamaCare more than 50 times. Since ObamaCare was upheld in the Supreme Court and Barack Obama was sworn into office for a second term, the Affordable care Act has become “the law of the land”, albeit with some major changes made in the Supreme Court ruling. Some of the changes include states being able to opt out of expanding Medicaid to it’s poorest and the ruling of the individual mandate’s “shared responsibility fee” as a tax.
Since the NFIB lawsuit, additional lawsuits have changed other aspects of how the law works and what the fate of the law could be moving forward.
States Opting Out of Medicaid Expansion
Under Medicaid expansion states had the opportunity to expand Medicaid eligibility to everyone making less than 138% of the federal poverty level. In states that did not expand, 5.7 million will remain uncovered due to narrow eligibility guidelines used by those states.
States Opting Out of Creating Marketplaces
When the law was written it was assumed that all states would create their own Health Insurance Marketplaces. However, many states deferred running their own marketplace to the Federal Government. The Federal Government’s marketplace became the official marketplace healthcare.gov.
While the law allowed for states to have the Federal Government run their site, specific wording of the law that says The Affordable Care Act authorizes federal subsidies for health coverage obtained on an “Exchange established by the State under section 1311.” This has led to several court cases that charge that subsidies should be illegal in states that deferred setting up their marketplaces to the Federal Government.
Is ObamaCare Socialized Healthcare / Health Insurance?
The idea that ObamaCare is socialized healthcare or socialized health insurance is a myth. Socialized healthcare implies that all health care workers work for the federal government and all the hospitals and clinics are owned by the government (public healthcare delivery), while socialized health insurance implies that health insurance is run by the government (public healthcare funding). The American healthcare and health insurance system, both before and after the Affordable Care Act, are best described as a uniquely American, mixed-market approach to healthcare and health insurance, which use combinations of public and private funding and delivery methods.
You can read more about other myths and talking points on our ObamaCare myths page.
What Else Does ObamaCare’s Health Care Reform Cover?
ObamaCare aims to provide quality healthcare for more Americans at more affordable rates. Health care reform under the Affordable Care Act is the most significant overhaul of the health care industry in decades, covering every aspect of healthcare including mental heath, care for seniors, child health, woman’s health and care for our nations poorest. ObamaCare also provides drug coverage, free preventive care, check ups for children and countless other unprecedented reforms to the American health care system. ObamaCare may not be perfect, but it does a lot to expand the average Americans health care rights. Find out more ObamaCare Facts check out the Benefits of ObamaCare (the Affordable Care Act) and our guide to the health insurance marketplace.
ObamaCare Facts: Dispelling the HealthCare Myths