Affordable Care Act

Updated: 09 June 2023

What Does Affordable Care Act Mean?

The Affordable Care Act is a federal statute that President Obama signed it into law on March 23, 2010 to reform the American healthcare system. It aims to expand healthcare coverage and quality and make health insurance more affordable for individuals and the government.

The Affordable Care Act has enacted changes to nearly every part of the American healthcare system. Some of the major provisions include no longer allowing insurance companies to deny health insurance due to pre-existing conditions, a requirement for every American to buy health insurance or face a tax penalty, an expansion of Medicaid coverage, and tax subsidies to help low-income Americans afford coverage.

It is colloquially known as “Obamacare.”

Insuranceopedia Explains Affordable Care Act

The Affordable Care Act has been a very politically charged issue since its launch. This law was almost entirely put together by the Democratic Party with virtually no support from the Republican Party. The bill passed entirely along party lines as no Republican politicians voted to pass this law. In 2012, the Supreme Court maintained the Affordable Care Act was constitutional.

The future of the Affordable Care Act is still uncertain as many Republican lawmakers vow to repeal the bill, while new challenges against Obamacare continue to escalate to the Supreme Court.



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