Implications of Obama Care Program

[Name of the Institute]Obama Care Program

Introduction

Obama care is commonly referred to Affordable Care Act or ACA. It is U.S. federal statute made after President Barak Obama signed it in. In collaboration with “Health Care and Education Reconciliation Act” it becomes one of the most imperative regulatory revamp of the healthcare sector. The last time it was elaborated in 1965. According to Stein (2013), it imparts on the reforms in Obama's healthcare initiatives. The bill was signed in 2010 in order to ensure that majority of U.S. citizens should have access to healthcare facilities. It has a prime aim to lessen the expansion of spending in health care and to design a comprehensive system that should have smooth execution but is effective.

Obama Care Bill

According to Boulton (2013), ACA encompasses several provisions that bear the potential to have noticeable impact in between the time period of 2010 -20. There were policies passed before 2010 being exempted via a grandfather clause from numerous changes to insurance standards, however, they are affected due to other prevailing provisions. The following are the reforms that are already in effect:

Guarantee Issue

It proscribes insurers from placing any denial to covering for the individuals because of pre-existing conditions and prejudiced community rating. It needs the insurers to present the individuals of the same age and geographical location with same premium price. There are no discriminations on the basis gender or pre-existing clauses except for tobacco use.

Minimum Standards for Health Insurance Policies

According to Obama Care Facts (2010), it refers to the implementation of quality services and equipment used in the provision of healthcare facilities.

Individual Mandate

It implies on every individual who have no coverage under their employer sponsored health plan or through other Medicare public program to provide security by rendering approved private insurance policy or pay a penalty. This should prevail unless the applicable person posses a financial hardship or has a membership in a recognized religious sector which is exempted by Internal Revenue Service. The clauses in the law embed subsidies to facilitate the people who have low income.

Health Insurance Exchanges

It includes beginning operation in all the states. Every exchange will tend to serve as an online marketplace. Here the individuals and small businesses are able to compare policies and purchase in the presence of government subsidy in case of having eligibility (Obama Care Facts, 2010).

Low-Income Families

According to Obama Care Facts (2010), individuals and families with low income or lie between 100% and 400% of the rate defined by federal poverty level will be eligible to receive federal subsidies upon the sliding scale in case if one buys insurance through an exchange. The ones who fall under 133% to 150% of the federal poverty level will be subsidized in a way that their premium costs will come out to be 3% to 4% of their income.

Medicaid

According to Obama Care Facts (2010), its eligibility has been capitalized in order to include individuals and families having the ...