The Patient Protection and Affordable Act or PPACA also referred to as Affordable Care Act or Obamacare is a US Federal Statute that is signed to law by the United States President Barrack Obama last March 23, 2010. Together with Health Care and Education Reconciliation Act, this act represents major significant regulatory reform of the healthcare system of US since the Medicaid and Medicare passage in 1965.
The Enactment of the Affordable Care Act
The Affordable Care Act was enacted with primary objectives of increasing affordability and quality of health insurances and reducing uninsured rate by means of expanding private and public insurance coverage. This act also aims of reducing healthcare costs for the government and individuals. Affordable Care Act also introduces series of mechanisms including subsidies, insurance exchanges and mandates that are meant to uplift stability and coverage.
The Role of the Patient Protection and Affordable Act
The Patient Protection and Affordable Act also require insurance providers and companies to provide coverage to all individuals within the minimum standard and offer similar rates regardless of sex or pre-existing conditions. Additional reforms intend to minimize cost and make healthcare outcomes better by means of shifting system towards premium quality over quantity via regulation, incentives and increased competition to highlight healthcare delivery and availability.
Obamacare also officially known as Patient Protection and Affordable Act was signed for the purpose of bringing and executing reform to the healthcare industry of the United States by means of giving Americans access to affordable yet quality and to minimize the growth of healthcare spending. The Patient Protection and Affordable Act or the federal healthcare reform has been passed and approved by the Congress and a particular government entity is tasked to implement the said law. This law executing entity that has been entrusted with the implementation works with federal and state agencies to make sure that healthcare reforms both expand and protect coverage and consumers at the same time.
Impact on States
In some state, consumers already have the new rights under this healthcare reform. Taking for instance insurance policies that allow individuals keep their children on their insurance until they reach the age of 26. Insurers cannot deny children health coverage because they got existing health conditions. As long as qualified individuals fill up and complete the form truthfully, their health insurance cannot be cancelled, rescinded and renewed just because they got sick. Several policies are now offering preventive services like mammography, immunizations, cancer screenings and more without out-of-pocket rates and costs.
Healthcare requires insurers to spend between 80%-85% of their premiums on actual health and medical expenses. If the administration cost or profit exceeds the set amount, consumers will get rebate check for that particular amount and these costs are monitored by appointed departments. The Department Insurance of some state like California usually reviews all the proposed rate changes of insurance. This department might not have the authority of rejecting rate changes but their experts can review rate filings and decide whether the insurance rate change is unreasonable or reasonable enough. The rate filing is made available to the public by this insurance department.