The ACA, or Affordable Care Act, is a comprehensive healthcare reform law enacted in the United States in 2010. The ACA sought to lower healthcare costs, broaden access to health insurance, and raise the standard of care. The ACA has expanded coverage and added consumer protections to the U.S. healthcare system. Among the essential elements are:
- Expansion of Medicaid: The ACA expanded Medicaid eligibility to cover more low-income individuals.
- Health Insurance Marketplaces: It created state-based health insurance exchanges where people can compare and purchase insurance plans.
- Subsidies: It provided financial assistance to help lower-income individuals and families afford insurance.
- Individual Mandate: Initially, it required most Americans to have health insurance or pay a penalty (though this penalty was effectively eliminated in 2019).
- Pre-existing Conditions: Insurers are prohibited from denying coverage or charging higher rates due to pre-existing health conditions.
- Young Adults: It allows young adults to stay on their parents’ insurance plans until age 26.
Health insurance plans come in a variety of forms, each tailored to a certain set of requirements and preferences. The following are the primary categories of health insurance plans:
Did You Know?
You must buy your health insurance during a valid enrollment period?
The ACA open enrollment period typically occurs once a year. For 2024, the open enrollment period runs from November 1, 2023, to December 15, 2023. During this time, you can sign up for a new health insurance plan or make changes to your existing plan through the Health Insurance Marketplace.