The Provision Of The Affordable Care Act

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When president Obama signed the Affordable Care Act in March 2010, it came with a lot of new provisions that would vary when they would come into effect. The very first provision was the “Grandfather Clause” which allowed people to keep their insurance plan before the act went into effect. As long as the employer still offered that plan the employee could still maintain it because they were grandfathered into receiving that coverage. If someone bought an insurance plan after March 2010 they would not be considered under the Grandfather Clause. Thus, these individuals would be required to get a new plan by 2014 if their plan did not meet all the criteria, they would need to get a new plan that fills all the criteria. Another major provision of the Affordable Care Act is that patients have a guaranteed issue. This means that insurance companies are unable to deny anybody health insurance based on their health or prior health. This may create a problem because the risk pool of an insurance company may not have the best people. Eventually, this could lead to the majority of the risk pool for an insurance company to have people who are at a greater risk of needing health insurance. This will make the insurance company more vulnerable and the only way that they will be able to cover the losses is by raising the premiums on everyone even though there may be some individuals that are in perfect health. The next provision that was added under the Affordable Care Act is that the

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