Patient Protection and Affordable Care Act

1445 WordsDec 14, 20126 Pages
Patient Protection and Affordable Care Act The Patient Protection and Affordable Care Act (PPACA) signed into law by president Obama on March 23, 2010 is arguably the most extensive reform of health care law ever to be enacted in the U.S. It will impact the way professionals practice health care, the way insurance companies handle health care as a product, and the way consumers purchase and use health care as a service. The Affordable Health Care Act is primarily aimed at reducing the number of uninsured Americans and reducing the overall costs of health care from an administrative and consumer standpoint. The PPACA requires insurance companies to cover all applicants and offer the same rates to all applicants of the same age…show more content…
This too could lead to a coverage gap in those states. The Act has not been fully instituted yet; it is set to be fully effective by the year 2020, but the provisions that are in effect now have benefited millions of Americans. For example, a little more than three million young adults in America who were uninsured have gained coverage by being able to stay on their parent 's health plan (HealthCare.gov) and 86,000 Americans with pre-existing conditions are receiving affordable insurance through a temporary plan called the Pre-Existing Condition Insurance Plan (HealthCare.gov). Insurance companies will be made to act more responsibly under the PPACA. They are already being made to spend their money more wisely. For example, the the health insurance companies of 76 million Americans are now required to spend 80% of premiums paid by the insured on improvements to health care. If they do not use 80% of the money paid to them by their customers for that purpose, they will be required to provide rebates to their customers (HealthCare.gov). Nearly 1.1 billion dollars in rebates have been provided to nearly 13 million customers. If insurance companies should feel the need to raise rates by 10% or more, they must publicly justify why they are raising their rates and the law gives states resources to review and block premium increases of this magnitude (HealthCare.gov). The primary goal of the new healthcare policy is to insure all
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