How has the Affordable Care Act (ACA) changed our lives?
The ACA generated one of the largest expansions of health coverage in U.S. history. In 2010, 16 percent of all Americans were uninsured; by 2016, the uninsured rate hit an all-time low of 9 percent. About 20 million Americans have gained health insurance coverage since the ACA was enacted.
How will the ACA change the health care delivery system?
How the ACA Will Change the Health Care Delivery System - The Impacts of the Affordable Care Act on Preparedness Resources and Programs - NCBI Bookshelf Key features of the Affordable Care Act (ACA) are access to health care through expanded coverage, improved quality and efficiency and lower health care costs, and consumer protections.
What are the coverage expansion provisions of the ACA?
Two of the biggest coverage expansion provisions of the ACA went into full effect in 2014: the expansion of Medicaid and the launch of the health insurance marketplaces for private coverage. Together, these programs now cover tens of millions of Americans.
How does the Affordable Care Act protect people with preexisting conditions?
Another crucial protection for people with preexisting conditions is the ACA’s requirement that plans include categories of essential health benefits, including prescription drugs, maternity care, and behavioral health. This prevents insurance companies from effectively screening out higher-cost patients by excluding basic benefits from coverage.
1. 20 million fewer Americans are uninsured
The ACA generated one of the largest expansions of health coverage in U.S. history. In 2010, 16 percent of all Americans were uninsured; by 2016, the uninsured rate hit an all-time low of 9 percent. About 20 million Americans have gained health insurance coverage since the ACA was enacted.
2. The ACA protects people with preexisting conditions from discrimination
Prior to the ACA, insurers in the individual market routinely set pricing and benefit exclusions and denied coverage to people based on their health status, a practice known as medical underwriting.
3. Medicaid expansion helped millions of lower-income individuals access health care and more
To date, 36 states and Washington, D.C., have expanded Medicaid under the ACA, with 12.7 million people covered through the expansion.
4. Health care became more affordable
The ACA’s signature health insurance marketplaces—portals for people purchasing coverage on their own—launched in fall 2013 and made financial assistance for private coverage newly available.
6. Young adults and children have greater access to coverage
One of the first ACA provisions to go into effect was the rule guaranteeing young adults the right to stay on a parent’s insurance until age 26. About 2.3 million young adults—a group that is less likely to have an offer of employer-sponsored insurance than their older counterparts—gained coverage under the ACA’s dependent coverage provision.
7. The ACA improved access to prescription drugs
By expanding Medicaid eligibility as well as broadening the Medicaid Drug Rebate Program, the ACA gave more low-income Americans access to brand-name and generic drugs and lowered the costs for taxpayers.
8. Rural communities have benefited from the ACA
Medicaid expansion is particularly important for coverage and the sustainability of the health care system in rural areas. Rural residents are more likely to be covered by Medicaid: 22.5 percent of rural Americans have Medicaid coverage, including nearly half of all rural children.
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Room for improvement
Its impressive, game-changing benefits notwithstanding, the ACA can be refined and enhanced. This process is already underway. Significant improvements to the ACA were provided in the most recent COVID-19 relief bill, the American Rescue Plan Act of 2021, which became law this past March.
Benefits of extending coverage
It is important to remember that extending coverage to the uninsured–by subsidizing ACA marketplace coverage, expanding Medicaid and by other means–boosts our efforts to dismantle longstanding inequities in our health care system that have directly harmed Black, Latino and Indigenous communities and other historically marginalized groups.
How much of the economy is Medicare?
A key concern is whether Medicare costs, which are growing at a faster rate than the overall economy, are sustainable over time. In 2019, Medicare comprised 3.7 percent of gross domestic product (GDP), a measure of the entire U.S. economy. By 2094, Medicare will take up 6.5 percent of GDP, which essentially means a smaller share of the economy would be available for all other goods and services.
When will Medicare run out?
The Medicare Trustees project that the HI trust fund’s assets will run out in 2026 and, at that point, annual payroll taxes will cover only 90 percent of the program’s costs.
Is Medicare a long term solution?
But the federal government program faces long-term solvency issues. As noted in the 2020 Medicare Trustees Report, Medicare’s Hospital insurance (HI) trust fund is projected to be depleted in 2026. In addition, increased spending in the program’s Supplementary Medical Insurance (SMI) trust fund will increase pressure on beneficiary household budgets and the federal budget. Sustainability problems could be even worse than projected in the 2020 report, especially in the near term, due to the fact the report does not incorporate the effects of the COVID-19 pandemic on Medicare spending and revenues. Steps must be taken to ensure Medicare’s long-term sustainability, although the impact is uncertain.
Is Medicare a strong financial institution?
By addressing Medicare’s long-term solvency and sustainability challenges now, more gradual changes could be made sooner, giving beneficiaries and taxpayers more time to adjust. If Congress and the administration delay action, larger benefit cuts or tax increases for Medicare would be required.
What is the primary source of the pressure Medicare places on the federal budget and of Medicare's long-term unsu
The primary source of the pressure Medicare places on the federal budget and of Medicare's long-term unsustainability is the large and growing subsidy given to America's seniors through Medicare benefits. This subsidy is essential and appropriate for low-income and middle-income seniors, past and present.
When did Medicare phase out?
Income-Based Phaseout of the Medicare Subsidy. With the passage of the Medicare Modernization Act, Congress took two noteworthy steps toward Medicare reform in 2004. The first step was the enactment of a new drug benefit (Part D). This reform reflected the growing importance of drug treatments in health care delivery.
How much Medicare subsidy do married people get?
Medicare beneficiaries who file their taxes as a married couple will continue to receive a 75 percent subsidy if their income is below a certain threshold. The subsidy percentage then declines in four steps as the beneficiaries' income rises, down to the minimum subsidy of 20 percent.
How much was Medicare in 2007?
For example, in 2007, the average Medicare enrollee received a benefit valued at $10,460, which included a subsidy of $4,053. Medicare is a vital part of a federal social safety net, and it should be preserved, kept affordable for lower-income seniors, and be available to all seniors.
What is the third largest federal program?
Medicare is the third largest program in the federal government after defense spending and Social Security. It will soon become the largest program, absorbing an ever-increasing share of the budget and national income.
What is Medicare's total excess cost?
Medicare's Total Excess Costs. Medicare's projected annual excess costs are the sum of the projected shortfall in Part A , which begins after 2019, plus Part B and Part D's ongoing draw on the general fund. In 2007, Medicare drew $179 billion from the general fund primarily to cover costs associated with Parts B and D.
Is Medicare a self-funded program?
As Table 1 suggests, Medicare is, in part, a self-contained program with dedicated revenues funding defined benefits. The exception-an exception that is a growing problem-is that Medicare's excess costs are funded by drawing large and increasing amounts from the general fund of the U.S. Treasury.
When did the ACA open enrollment start?
The first open enrollment on the new health insurance Marketplaces created by the Affordable Care Act began October 1st, 2013 and ran until March 31st, 2014. Next year's open enrollment is November 15 th, 2015 to January 15 th, 2016.
Do you have to visit the Marketplace for Medicare?
People with Medicare do not need to visit the Marketplace — their Medicare coverage, whether they receive it through a Medicare Advantage plan or Original Medicare, isn’t changing because of the Affordable Care Act and the Marketplaces.
How does the Affordable Care Act protect people?
The Affordable Care Act protects individuals with pre-existing health conditions by prohibiting insurance companies from considering people’s health when they apply for coverage. Without these protections, four out of 10 adults ages 50 to 64 – or about 25 million people in this age group – could be denied health coverage because of a pre-existing condition if they sought to buy an individual plan. Read
How many older people are uninsured under the ACA?
Did you know that over 3 million older adults ages 50-64 rely on Affordable Care Act (ACA) tax credits to purchase health coverage? In fact, pre-ACA, almost half of them were uninsured.
How much will Medicaid cut in 2026?
According to newanalysis from the AARP Public Policy Institute, states may cut Medicaid HCBS by as much as $46 billion in 2026 to stay within their allotted per capita caps-- a 22 percent cut. Read the new Insight on the Issues to learn more and find out the potential impact on your state. Read.
What is the BCRA?
The Better Care Reconciliation Act (BCRA) puts Medicaid home- and community-based services (HCBS) on the chopping block. The proposed demonstration program for Medicaid HCBS, included in the revised version of the Senate Bill on July 13, does not change the big picture. According to newanalysis from the AARP Public Policy Institute, states may cut Medicaid HCBS by as much as $46 billion in 2026 to stay within their allotted per capita caps-- a 22 percent cut. Read the new Insight on the Issues to learn more and find out the potential impact on your state. Read
What is the Urban Institute report on Medicare?
The Urban report offers important insights into how transforming Medicare to a “premium support” system would work in practice—and how it would adversely affect people with Medicare. The report— Restructuring Medicare: The False Promise of Premium Support by Robert A. Berenson, Laura Skopec, and Stephen Zuckerman— was funded by the AARP Public Policy Institute. Read
What age group is considered to be in the non-group insurance market?
This series of reports looks at older adults ages 50 to 64 in the nongroup (individual) health insurance market, for whom high health care costs and affordability of health coverage are growing concerns. Read
How much does social isolation affect Medicare?
Now a new study—the first to examine whether social isolation also affects health care spending among older adults—finds that a lack of social contacts among older adults is associated with an estimated $6.7 billion in additional Medicare spending annually.