Obamacare Insurance Plans or just “Obamacare” is the colloquial name of the Affordable Care Act (ACA), which was signed into law by President Barack Obama on March 23, 2010.
The act aims to ensure that all Americans are covered by affordable health insurance. The ACA has also been intended to protect consumers from insurance company maneuvers that might increase patient costs or limit care.
Affordable health insurance coverage through the ACA has benefitted millions of Americans, many of whom were unemployed or from low-income groups. It provides financial assistance based on your income to help decrease your healthcare costs.
Benefits Of Obamacare Insurance Plans
1. It Entailed 10 Essential Health Benefits
All insurance plans under Obamacare are entailed to include specific health issues, covering mental health, addiction, and chronic disease. When this insurance prerequisite was not in place, the only place where some people got the required treatment was in emergency rooms.
Before this act, if someone could not pay for their healthcare, their only choice was to go to a hospital emergency room.
2. Health insurance is more reasonably priced for many people
Insurance companies have to spend a minimum of 80% of insurance premiums on medical care and recoveries. The ACA also strives for preventing insurers from causing irrational rate increases.
Insurance coverage is not free in any case, but people now have a broader range of coverage options. Even though there have been criticisms about premiums rising in some parts of the country, Obamacare restricted the global rise in healthcare costs.
3. People with pre-existing conditions cannot be denied coverage
Before the ACA, a pre-existing condition like cancer made it hard for many people to have health insurance. Most insurance companies would refuse to cover treatment for these health conditions, saying that this was due to the occurrence of the illness or injury before their plans covered you. Under the ACA, you cannot be denied coverage because you have a pre-existing health problem.
4. It eradicated coverage limits
Under Obamacare Insurance Plans, the limits on the annual cost and lifetime coverage were eliminated. Before the ACA, insurance coverage would expire for some people with chronic health conditions, as insurance companies set limits on the sum of money they would spend on a particular consumer.
5. It allowed young adults to stay on their parent’s healthcare plans until 26
The ability for parents to have their children covered until 26 was among the most admired provisions of Obamacare. Over 3 million young adults were included in their parents’ plans in the U.S. in just the first 24 months of the act being active.
Because of that insurance companies got an extra boost as the insurance was able to cover more healthy people.
6. It provided free care expansion and significant subsidies
Under Obamacare, Medicaid coverage would qualify people earning up to 138% of the federal poverty level. Adults without children were also provided with Medicaid coverage for the first time.
Working families earning up to 400% of the federal poverty level got tax credits on their premiums. Businesses with over 50 employees needed to offer health insurance as a benefit and obtained help with those additional costs in the form of tax credits.
Read Also: 3 Steps To Get The Best Health Insurance Subsidy
7. More Americans enjoy Obamacare Insurance Plans
Over 16 million Americans received health insurance coverage within the first five years of Obamacare. Of these newly insured people, young adults comprise a large percentage.
8. Obamacare covered more routine services
Many screenings and preventive services were accessible to a larger population group. They typically boast low copays or deductibles. The purpose of these services was to delay or avoid future health problems.
Over time, healthier consumers will have reduced costs. For instance, a diabetes screening and timely treatment may help avoid expensive and unbearable treatment later.
9. Prescription drugs cost less
Obamacare Insurance Plans pledged to make prescription drugs more affordable. Many people, especially senior citizens, cannot afford all their medications. Every year the ACA is covering a growing number of prescription and generic drugs.
Consistent with a press release of the Centers for Medicare and Medicaid Services from 2017, over $26.8 billion was saved on prescription drug spending under Obamacare.
10. It included free preventive care
The key to staying healthy is to avoid illness or to catch problems early. Your plan comprises free preventive care when you see a doctor in the network of your plan. Preventive care involves screenings, checkups, and vaccines.
Read More: 10 Vital Health Benefits Under The Affordable Care Act 2023