Talking about the health insurance plans, a plan that lately got attention is “The Affordable Care Act (ACA)” which is sometimes called Obamacare act. It was signed and made into a law in 2010 in the USA. It targets to provide affordable health insurance to American citizens.
One of the many objectives of this plan is to protect the consumers from such insurance companies that rip their clients off for the enormous amount of money as insurance. There are millions of Americans that are getting benefit from Obamacare plan. It has even helped unemployed or low paying jobholders by facilitating them with maximum health benefits.
Despite the benefits, The Affordable Care Act (ACA)/ Obamacare is highly controversial. It has brought many positive outcomes yet people criticize it. The conservatives objected to an increase in tax and premium insurance is required to pay for the plan.
There are a few people working in the health sector, which are critical for the extra workload and the additional cost, which is placed on medical providers. They assume that it is a negative effect, which will influence the quality of services. These along with other similar objects calls for The Affordable Care Act (ACA) to be repealed or overhauled.
Let’s know about the evens and odds of The Affordable Care Act (ACA) or Obamacare.
Advantages of The Affordable Care Act (ACA)/ Obamacare
Following are a few reasons why this plan is a success.
- It provides facility to more people to get health insurance
The popularity of the health insurance plan can be estimated from the fact that more than 16 million Americans have obtained Obamacare plan within the first five years of its establishment. A larger part of this number is of young adults who tell it is affordable yet trendy for teenagers who may not be earning well.
- If is affordable for the majority of the people
Insurance companies are required to spend the 80% amount of insurance premiums on the medical services and improvements for the setup. Similarly, The Affordable Care Act (ACA) also focuses on preventing the insurers from making logic less increased rates. It shows that insurance is not free for anyone, but people now have so many ways to compensate for the coverage payments.
- It facilitates the people with pre-existing health conditions
Usually, having a pre-existing condition, such as cancer, before buying an insurance plan reduces the chances to get health insurance before The Affordable Care Act (ACA). Most of the insurance companies don’t cover for treatment for pre-existing chronic conditions. But under The Affordable Care Act (ACA), it is possible to get coverage for the treatment of a pre-existing health problem.
- There is no time limit to enjoy the privileges
Before the introduction of The Affordable Care Act (ACA), some people with chronic health problems were failed to claim insurance coverage. There were limits set by insurance companies for the amount of money, which they were willing to spend on individual costumes. But after The Affordable Care Act (ACA) was launched, they no longer maintain these limits.
- Diagnostic and screening tests are covered in it
One of the reasons why The Affordable Care Act (ACA) plan got so much success is that if you are proactive in healthcare, you can reduce the risk of any possible disease. Many of the people prefer to get screening tests before the disease shows symptoms on them. For example, an early diagnostic test for diabetes will initiate a timely treatment and reduce the complications for future.
- It reduces the price of medication
The Affordable Care Act (ACA) has promised to cut the price of expensive medicines, making them affordable to buy. There are many people such as low earning people or elderly adults who cant afford buying expensive medicines even when their healthcare is covered by an insurance plan. Many of the insurance plans don’t cover medicines. Under The Affordable Care Act (ACA) it would be possible to save on prescription drugs. This is one of the major reasons for popularizing The Affordable Care Act (ACA) or Obamacare plan.
Disadvantages of The Affordable Care Act (ACA)
Following are a few points, which make the criticism open for The Affordable Care Act (ACA). Here we go.
- People have already paid a high amount as premium
Insurance companies now provide a wider range of benefits and cover people with pre-existing conditions. This has caused premiums to rise for a lot of people who already had health insurance.
Fine for not getting your insured for health
The aim of Obamacare was to ensure the registration by maximum people. For those who aren’t registered with any health insurance plan, must pay fine as a penalty. This fine was expected to motivate people to buy insurance for health.
But some people think that government is being intrusive by requiring health insurance and setting a fine for it. Anyhow, the supports of The Affordable Care Act (ACA) believe that not having an insurance plan passes the healthcare cost of yours to anyone else.
- Introduction of new taxes
The introduction of Obamacare is criticized as several new taxes were created to generate the payment for the insurance plan. It includes the taxes on medical devices and the sale of pharmaceuticals. The additional tax was added for people that are earning high.
The aim was to subsidize insurance plans for the poor. The economics expert believes that in the long run, this Obamacare insurance plan will reduce the deficit and may eventually show a positive impact on the budget and society.
- Complicated process of enrolling
It is not possible to completely understand The Affordable Care Act (ACA) at first. Even the website was having weird technical problems in its initial years of launch. It made The Affordable Care Act (ACA) a difficult thing to be approached by the people, and it received lower than expected signups for the same reason.
The problems with the website were eventually fixed, but still many users complain that it is challenging to understand and sign up for the right choice of health insurance plan. To facilitate the citizens, many hospitals and healthcare providing agencies have set up programs to guide the consumers on setup process. The website of Obamacare also has sections which explain the programs and options in the simplest ways.
- Changed business strategies to avoid paying for health insurance of employees
The most prominent criticism on Obamacare by the opponents is that this law will destroy the job market. Already some full-time jobs are gone as the law has been passed but there are reports that companies are cutting their employee hours so that they don’t have to pay for the covered health insurance.
Here you should know that a business with 50 or more full-time employees is required to offer health insurance to the employees or pay for their healthcare expenses. If the companies reduced working hours, the employees would not be counted as full-time workers so they won’t be given any health insurance by the company.
The final thoughts
The Affordable Care Act (ACA) aims to specific changes every year. The intention is to make the health insurance services better and improved every year. It is a prominent factor that even the legislation can be amended to compensate the budget of this health insurance plan.
Any change in the health sector or any political breakthrough increases the chances of The Affordable Care Act (ACA) to be implemented even in the years that are to come in future.