The Affordable Care Act: timeline, implementation, and effectiveness

¶ … Affordable Care Act

Health policy issue in the United States

The Affordable Care Act (ACA)

The United States ACA is a vital healthcare law for the benefit of the multitude of American citizens unable to pay for quality healthcare for themselves and their families. President of the U.S., Barack Obama put the Act into effect on 23rd March, 2013. It was created for the purpose of according every citizen the opportunity of receiving quality healthcare services for prevention and cure (U.S. Department of Health and Human Services, 2013).

Timeline of evolution and events that led to the policy's creation

Autumn 2008: U.S. Democratic party presidential candidate Obama mentions a new healthcare policy

July 2009: Democratic legislators reveal their plans, in the form of a 1,000-page document, for revolutionizing the present U.S. healthcare system.

August 2009: Policymakers discover concerns among citizens with respect to "Obamacare," with one policymaker stating that citizens are stunned by the numerous changes that have taken place in only eight months since President Obama was sworn into office.

November 7, 2009: The healthcare reform plan of the House is approved by a 220-215 vote by the House.

December 24, 2009: The Senate version of the plan is also approved by the Senate in a 60-39 party-line vote.

March 2010: The President, as well as Speaker of the House Nancy Pelosi, press Democrat policymakers to ensure the ACA's passage.

March 21, 2010: The House approves the Senate plan in a 219-212 vote.

March 23, 2010: The ACA is signed by President Obama into law. On this occasion, the President states that "We did not fear our future, we shaped it."

June 2010: The ACA's first key provision is implemented, permitting adults having existing health conditions to enter provisional high-risk pools, slated to be terminated after the ACA comes into force.

September 2010: More of the ACA's components take effect

September 2011: It becomes mandatory for health insurers to go public; rates should be increased 10% or higher.

November 6, 2012: Barack Obama wins a second term as President, ensuring that the ACA will continue.

January 2013: Pre-tax contribution limit to flexible spending accounts gets capped at 2,500 dollars per annum.

January 1, 2014: The majority of ACA changes take effect (Affordable Health California, 2015).

Origination point of the policy

The process of creation of the ACA, famously called 'Obamacare', began when Obama was a presidential candidate; he proposed a historic tax reduction in healthcare for the middle classes. This formed the basis for Obama's election campaign. However, this concept of a countrywide insurance system wasn't a novel idea. Since the past 75 years, democratic presidents have been (unsuccessfully) trying to achieve this (Affordable Health California, 2015)."

Key events tracing to its current status

New consumer protections

Cost cutting and quality improvement

Greater access to reasonably priced healthcare

Affordable Insurance Exchanges

Greater Medicaid Access

Explanation for each selected event

New consumer protections

ACA offers an avenue for consumers to compare different available health insurance choices and opt for one that best suits their needs. There are new regulations for prohibiting denial of coverage to anybody below 19 years of age because of any pre-existing condition. The law is applicable to existing group health plans and new plans with plan years starting from or after 23rd September, 2010 (U.S. Department of Health and Human Services, 2013).

Cost cutting and quality improvement

ACA offers tax credits to around four million small enterprises to aid them in providing their employees with insurance benefits. This provision's first phase offers credit amounting to a maximum of 35% of the company's contribution to its workers' health insurance for large organizations, and up to 25% in case of small-scale not-for-profit firms. Also, it delivers relief to 4 million senior citizens who have reached the Medicare "donut hole" (U.S. Department of Health and Human Services (HHS), 2013).

Greater access to reasonably priced healthcare

ACA ensures insurance access to uninsured individuals having pre-existing health conditions. It offers new coverage choices to those who have remained uninsured for a minimum of 6 months due to their pre-existing condition. This program, effective from 1st July 2010, can be run by states if they wish to do so. The HHS department will establish a plan in those states deciding on not doing so.

Affordable Insurance Exchanges

Beginning 2014, those people who do not receive insurance coverage through their employers can directly obtain it from Affordable Insurance Exchanges, which are insurance marketplaces from where small enterprises as well as individuals can purchase health plans which meet cost and benefits standards. Congress Members will also obtain healthcare coverage via these exchanges (AFL-CIO, 2015).

Greater Medicaid Access

Families and persons with low incomes are qualified for Medicaid enrollment; furthermore, states opting for Medicaid expansion will receive funds from the federal government for covering virtually all coverage costs linked with newly eligible families and persons. Employees incapable of affording employer coverage will also receive aid in buying coverage via exchanges.

Summary of the purpose of the policy

The ACA's purpose is delivering more reasonably-priced and equitable health care. Already, this Act has done much to help families, and is slated to do much more (AFL-CIO, 2015).