What is Obamacare, Understanding the Basics

What is Obamacare

What is Obamacare? Obamacare is the shorter name, or the quick term for The Patient Protection and Affordable Care Act (PPACA) or the Health Care Reform Bill. It is the law signed by President Barack Obama on March 23, 2010. Obamacare represents on of the most significant changes to the Health Care industry in the United States of America. The last time the United States face such a sweeping overhaul was in the mid sixties, with the passage of Medicare, and Medicaid.

Obamacare’s main purpose is to provide patient protection and affordable health care to United States Citizens. This is done through various provisions of the law. Obamacare aims to also decrease the overall cost of Health Care in the United States.

What-is-obamacare

Obamacare is made up of various provisions, and mandates. Each mandates aims at resolving a specific health care issue. For example Obamacare has various mandates in place to help reduce overall health care costs. Such examples can be found in the Individual mandate, Health Insurance Subsidies, Tax credits, and Medicaid Expansion provisions. Other Obamacare mandates aim at providing patient protection. Such mandates includes the requirement for Health Insurance companies to provide insurance to all individuals regardless of any pre-existing conditions, no annual life time limits, and the requirements to keep children on parents health plan till the age of 26.

Obamacare is funded through an increase in various taxes, and reduction of current health care costs and benefits to offset various provisions. The major sources of revenue for Obamacare lies in the Medicare Tax, Excise Tax, Cadillac Insurance Policy Tax, Tax on Indoor tanning services. Obamacare also gain revenues from offsetting cost through such things as the Medicare Advantage program and other Medicare loopholes.

Obamacare is estimated to reduced the number of individuals that are uninsured in the United States by 30 million, this would leave an estimated 28 million individuals uninsured. Obamacare is estimated to ensure at least half of the United States population that is currently uninsured  The individuals that make up the 30 million will be predominantly. Illegal Immigrants; who are not elligbile to received tax credits, or subsidies. Citizen who chose not to enroll in Medicaid, Residents of states who opted out the Medicaid Expansion provision of Obamacare, and citizen whose cost of health care is 8% of their total income.

What is the expected cost of Obamacare

According to the CBO ( Congressional Budget Office)  and JCT’s (Joint Committee on Taxation)  current projection of the budgetary impact of the ACA’s coverage provisions is $1,363 billion over the nine year period from 2014–2023. While the original amount was lower, since the signing of the law the cost has been updated to reflect changes.  The latest cost figures as of February 2013  represent an increase in the amount of $40 from the previous estimate of  $1,323 billion.

obamacare cost

CBO Obamacare cost

 

To get the latest update on Obamacare, please visit the Health Care Reform section of our site.

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