The Affordable Care Act ( Aca ) Essay

908 Words4 Pages
With 50 million uninsured Americans in 2010, the Affordable Care Act (ACA) aimed to insure nearly everyone with “minimum essential” health insurance coverage. The ACA provides that all Americans and individuals lawfully present in the United States be provided health insurance regardless of their health or financial situation. It strengthens existing forms of health insurance coverage, while building a new health insurance market for individuals and families who do not have employer coverage or another form of “minimum essential coverage” such as Medicare or Medicaid. In addition, the ACA imposes fees or assessments on health insurance providers. The fees meant to be absorbed by insurance providers will impact premiums for all individuals covered under fully insured or self-funded plans and policies.

For instance, the ACA imposes an Annual Fee on Health Insurance Providers, which became effective in 2014. This annual fee is used to fund comparative effectiveness research and will be divided proportionately between all health insurance providers. As the law stands, both fully insured and self-funded employer health plans will be assessed an annual nonrefundable excise tax. These fees are non-deductible for federal tax purposes, and for every $1 assessed and paid in fees, an additional $0.54, will be collected by insurers, assuming a 35% federal excise tax rate. This amount will be $8 billion in 2014, increasing to $14.3 billion in 2018. Both the non-partisan

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