Many of the US citizens are unaware of how the Obamacare functions and thus are apprehensive about the new mandate. Knowing about certain important aspects will help them to know the Act better, and how it is supposed to make health coverage affordable.
The general reaction about Obamacare hasnt been very positive. Most of the US citizens who have been voicing against the new mandate are used to looking at the glass half-empty. Its true that Obamacare has its shortcomings. However, at least it has taken up the initiative to revive the healthcare industry which had been neglected for long.
The Patient Protection and Affordable Care Act (PPACA) had been signed into law by President Barack Obama in early, 2010. More popularly identified as Obamacare, the new mandate will be fully implemented in 2014 only. It is expected to bring several changes in the health insurance industry, and introduce new rules. Many of the US citizens are apprehensive about the forthcoming rules since they are unaware about the whole picture.
The Affordable Care Act is not as intimidating as many think them to be. Look at the following aspects of obamacare so that you can know how itll affect the health care industry:
- Works along with your private health care plans Obamacare is not a substitute for your private health insurance policy, Medicare or Medicaid plans. It doesnt offer specific health coverage. It works along with your existing plan only, and tries to cut down the costs of health care.
- Imposes regulations on the insurers The Patient Protection and Affordable Care Act imposes certain restrictions on the health insurance companies. The new regulations ensure that the insurers cant deny coverage to individuals with pre-existing conditions. Again, caps have been imposed on the insurance premium to make sure that the insurers dont set exorbitant rates for coverage.
- Offers more health care options through Exchanges The Act intends to set up healthcare exchanges in the states, which will work like online marketplaces wherefrom policies can be bought. Consumers will be able to get customized coverage according to their requirements. Theyll be able to compare quotes and coverage offered by the various insurers at the exchanges and then select one which suits them best.
- Will reduce the number of uninsured Americans Obamacare will make health insurance affordable, so that even the low-income individuals will be able to stay protected. Besides, the new mandate includes a provision which allows the young adults to stay insured under their parents health insurance policy till the age of 26. This has led to a noticeable drop in the number of uninsured young adults. Individuals without health coverage will have to pay tax penalties later on.
Financial experts state that the Act is expected to reduce US federal deficits and not increase it, as feared. Obamacare only imposes certain restrictions on the health insurance industry, and tries to lower the health care cost. After all, as the name suggests, the main aim of the Act is to make healthcare affordable.