In: Other Topics
Obamacare is also referred as the Patient Protection and Affordable Care Act (PPACA) is a United States federal statue signed on March 23, 2010 by President Barack Obama. Along with the Health Care and Education Reconciliation Act, its main purpose is to reform health care. In 2014 the new Act will take place, which is designed to reduce the overall coverage health care costs by making services available to the 32 million who currently can’t receive insurance.
Some of the Obamacare pros will consist of affordable health insurance. For example, for people who can’t afford health insurance, the Federal government will pay the states to add them to Medicaid. The income requirements are expanded up to 133% of the Federal poverty level-this consists of $29,000 with a family of four. Insurance companies cannot deny children coverage for pre-existing conditions. This benefit applies to everyone in 2014. Insurance companies can no longer drop anyone from coverage once they get sick. If a company denies someone, coverage the person can go to an external appeals process. Parents are able to place their children on their health insurance plans up until the age 26. As of 2012, more than three million previously uninsured young people were added. In 2014, tax credits will increase by 50% and lower the budget by $143 billion over the next 10 years by raising some taxes and shifting more cost burdens.
Some of the cons would be if people who do not purchase insurance, and do not qualify for Medicaid or subsidies, will be penalized of $95 or 1% income, whichever is higher. In 2015 it will increase to $325 and 2016 $695. About 4 million people will end up paying the penalty rather than purchasing healthcare. If this happens the penalties will total $54 billion. Taxes will be raised on 1 million individuals who make $200,000 and 4 million couples filing jointly with income higher than $250,000. This will allow pharmaceutical...