For
the vast majority of Americans, the cost of healthcare for themselves
and their families is a constant nagging worry. The cost of health
insurance can take a large chunk of a family budget, even for workers
who are able to join group plans through their employers. The cost of
individual and family plans for self-employed workers is
staggering.
In addition, reports of insurance that was
rescinded after claims were filed left many Americans feeling they
were throwing away their money on health insurance. Yet the cost of
even a brief hospitalization is so huge it can leave a family’s
financial future in ruins.
In order to provide financial and
emotional security to every American, in 2009, President Obama began
a push for legislation to protect Americans from these types of
abuses, and on March 23, 2010, he signed the Affordable Care Act into
law. The scope of the act is so large that it touches all facets of
healthcare issues over a timeline of several years. In June of 2012,
the Supreme Court ruled that except for one provision, the new law is
constitutional.
First
Benefits from the Affordable Care Act
What
does this all mean to the average American? Already provisions of the
ACA are protecting children and the chronically ill from insurance
practices designed to exclude them from coverage. No longer can
children be denied coverage due to a pre-existing condition, and
lifetime dollar limits have been banned. Insurance companies cannot
suddenly discover a minor technicality, such as an error on an
application form, and use it to deny coverage after large claims are
filed.
In addition, some preventive services, such as
mammograms and colonoscopies, must be covered in full without regard
to deductibles and co-payments. Medicare now offers free preventive
care and prescription discounts.
Insurance
Changes
At
the heart of the ACA are regulations designed to hold the health
insurance industry accountable. Now, 80 to 85 percent of every dollar
consumers pay in insurance premiums must be spent on healthcare and
efforts to improve the quality of that care. Rebates are going out to
consumers to repay any excessive dollars that went to administrative
costs and profits.
Coming up in the next two years,
particularly in 2014, every American who does not receive insurance
benefits through an employer will be able to shop for the most
affordable
healthcare
plan to meet their family’s needs through insurance exchanges.
These exchanges will operate like an open market, where consumers can
compare the benefits and costs of each plan and choose the best
one.
The individual mandate portion of the ACA will also go
into effect in 2014. This mandate requires that every American
purchase insurance or pay a fine that will go towards health care for
those families that cannot afford any insurance. Some exemptions are
built into this mandate, including Christian-based healthcare
bill-sharing organizations. Members of these organizations will not
be required to purchase insurance under the mandate.