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Seven Benefits Of The Affordable Care Act

Some people have openly expressed a great dislike for Obamacare without even knowing about it in details. However, it is important to know all about the Affordable Care Act before judging it. Granted, it has cons, but you need to know the story from both sides before deciding whether it is good enough for you or not. Since we are just a little over a month away from 2019 when the act will finally become a law, it is about time you learn what it’s all about. Here are the advantages for you to see.

It Slows Down The Cost Of Health Care

The cost of health care in the USA is quite huge; in fact, the cost of medical facilities alone went up by 4% in 2004. One of the main benefits of the ACA would be to slow down the rising cost of health care which was making even middle-class people struggle with health insurance premiums. With Obamacare, millions of people will get access to health insurance, and they will also get preventive care free of cost. This means that getting medical attention before going to the emergency room will be free.

It Covers Essential Health Benefits

The ACA will make sure that all health insurance will cover the 10 basic health benefits. These include maternity and newborn care, chronic disease management, mental health, services for people with disabilities, pediatric care, lab tests, prescription drugs, outpatient care, emergency services, and hospitalization. There have been certain changes made that were not there till now, including a few benefits where insurance companies must pay to lower the cost of a premium. For example, lab tests, if prescribed by a doctor to diagnose a disease, should be 100% covered by the insurance company. Hospitalization also incurs a huge expense. Not many insurances cover it well; hence, customers end up paying big amounts from out of pocket.

Shopping For Plans Becomes Easier

If you didn’t know, the federal government operates an exchange or marketplace where people can shop and enroll for various insurance plans. Through Obamacare, each state is required to a similar marketplace. If they fail to have one, they can use the federal government’s marketplace, too. Finally, shopping for insurance won’t be a big headache anymore, plus those who earn up to 400% of the poverty level can get tax credits on their premiums. Medicaid will be available to 138% of the federal poverty level. Also, children can stay on a parents plan till they are the age of 26.

It Lowers The Budget Deficit

The act will lower the budget deficit by $143 billion by 2022, and that is huge. It will be possible because the act will reduce the government’s medical costs. It will also increase taxes on certain businesses as well as people belonging to the higher income group. It will also bridge the budget deficit by shifting the costs to health care providers and pharmaceutical companies.

People With Pre-existing Conditions Can’t Be Denied Insurance

Before Obamacare, many people were denied insurance if they were suffering from a fatal disease. Earlier insurance companies argued that since they were already suffering or were injured before they were covered by insurance, they can’t be eligible now. Now, no one can be denied health insurance on the grounds that they had some pre-existing condition.

There is No Time Limit

ACA helped people with chronic diseases as it removed the time limits on care. Earlier, there used to be lifetime and annual coverage limits. Companies would set a limit on the amount of money they would spend on a person in a year. Those who exceeded it had to pay 100% of costs. With ACA, that changes completely.

Lower Cost On Prescription Drugs

Prescription drugs will cost less with ACA. Senior citizens who are in need of prescription drugs regularly found it difficult to afford it at times. When Obamacare started, the savings on prescription drugs itself increased to $15 billion in the first five years.

But as mentioned earlier, the ACA has a few downsides as well like some people might end up paying higher insurance premiums; also, without health insurance, you can get fined. Companies have to provide for employee health insurance, so in order to fit their budget, they are cutting employee hours. Enrolling can be confusing, too. But if you look at the bigger picture, it does help a huge number of people in several ways.


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