What is the Patient Protection and Affordable Care Act (ACA)?

The Patient Protection and Affordable Care Act (ACA) is a federal statute that was signed into law in the United States by President Barack Obama on March 23, 2010.

The PPACA represents an important milestone toward eliminating racial and ethnic disparities in health and health care in the United States.

What does the ACA do?

The PPACA has benefits and protections meant to make health care more equal for everyone.  Here’s a general overview of what the health reform law plans to do from now to 2014:

As of today:

•  Insurers will be limited in how they spend premium dollars. If they use too much for administrative costs or profits, they’ll be forced to give some of it back through rebates.
• Some preventive care services will become free in all new private insurance policies and in Medicare such as screenings and vaccinations.
• People on Medicare will get more help with their prescription costs if they are over 65 or disabled.
• Young people can stay insured on their parents’ policies up to age 26.
• Some small businesses will get tax breaks to help them pay for health insurance for their workers and four million small businesses have access to $40 billion in tax credits. 
• Whether you buy insurance on your own or get it from your employer, lifetime limits on health coverage will be gone.
• It will be illegal to turn children down for having a pre-existing health condition like asthma or diabetes.
• Everyone now has the right to appeal insurer decisions to an independent third party.
• Insurance companies cannot levy deductibles, co-payments, or co-insurance for certain preventive benefits.
• Insurance companies can no longer drop coverage because of a simple mistake on an application, institute lifetime caps, limit choice of doctors, or charge more for emergency services obtained out of their network.
• 12,400 Americans with pre-existing conditions are receiving coverage through temporary high-risk insurance pools that will provide coverage for sicker individuals until 2014.

On New Year’s Day 2014:

• Medicaid will cover all low-income individuals and families in every state.
• If you lose your job or your employer doesn’t provide decent coverage, you may get a health insurance tax credit. A tax credit directly reduces your tax liability (the amount you owe).
• You'll be able to buy coverage in what’s called an “exchange.”  An exchange is like a virtual insurance mega-mall. Based on where you live, you’ll get an easy to understand menu of options to compare plans. The exchange makes sure insurance companies compete fairly under strict rules.
• In 2014, insurers will no longer be able to turn people down or charge them more if they're sick.
• Starting in 2014, if your income is less than the equivalent of about $88,000 for a family of four and your job doesn’t offer affordable coverage, you may get tax credits to help pay for insurance.
• In 2014, pregnancy and newborn care, along with vision and dental coverage for children, will be covered in all exchange plans and new plans sold to individuals and small businesses.
• Insurers will not be able to charge women higher premiums than they charge men. The law takes strong action to control health care costs, including helping states crack down on excessive premium increases and making sure most of your premium dollars go for your health care.