Health Insurance Act Essay

In short, the ACA is a complex law with many nuances and intricacies; however, the changes on the healthcare system that it caused can be summarized into several broad categories. First, it is now mandated that every American must have health insurance with an emphasis on preventative care (1); akin to auto insurance. If one does not partake in the insurance program, one would be levied with financial penalties from the IRS. At the individual level, the levy is $695 annually per individual or 2.5% of income, whichever is greater (1). This fine can even be extrapolated to include companies who do not take the fiscal responsibility to cover their employee’s health insurance. These fines, between $2,000 and $3,000, are expected be the financial

This is rectified by through a system of federal subsidies. The first subside is made through Medicaid expansion, which is estimated to assist 18 million additional Americans by 2019 help obtain medical coverage (1). The ACA pushes Medicaid to now be inclusive of American whose income is under “133% or138% of poverty.” (1) This means that Medicaid must ideologically shift from caring for those who cannot take care of themselves, to one of providing care to those who cannot afford alternatives. Secondly, the ACA has provided tax credits to help incentivize companies to offer health insurance on a sliding scale. It constitutes that the credit can be up to 50% of the employer’s contribution if the business has fewer than 10 employees. (1). Lastly, the subside with most media exposure, the new federal state-operated cost-sharing exchange program was created to accommodate those primarily who are not afforded the opportunity of employer-provided medical insurance. With this online health insurance forum, it is believed that an additional 29 million Americans will be covered by 2019, with one third of those being individuals opting for more affordable healthcare coverage.