Affordable Care Act

MoneyBestPal Team
A landmark U.S. federal statute that aims to reform the healthcare system and expand coverage to more Americans.

The Affordable Care Act (ACA) is a significant federal law that seeks to modernize the healthcare system and increase the number of Americans with access to coverage. 

President Barack Obama signed the legislation into effect on March 23, 2010, after the 111th United States Congress passed it. Although its detractors occasionally refer to it in a derogatory manner, it is also known as Obamacare.

The ACA has three main goals:
  • Make more people eligible for affordable health insurance. For households with earnings between 100% and 400% of the federal poverty threshold, the law offers subsidies (premium tax credits) that reduce expenditures (FPL). Additionally, it establishes health insurance exchanges where consumers may assess and buy policies that adhere to basic requirements for coverage and quality.
  • Increase Medicaid coverage to include all adults with incomes below 138% of the federal poverty level. States that elect to take part in the expansion have access to this choice. By 2021, the Medicaid programs of 38 states and the District of Columbia will have been expanded.
  • Encourage cutting-edge medical care delivery strategies intended to reduce overall health care expenditures. The law establishes a number of initiatives and programs, including accountable care organizations, patient-centered medical homes, value-based payment models, and preventative care benefits, to increase the effectiveness and efficiency of healthcare services.

The American healthcare system and population health outcomes have been significantly impacted by the ACA. As of 2016, the bill is thought to have resulted in a 20 to 24 million reduction in the number of Americans without health insurance. Additionally, it has enhanced access to preventive and primary care, improved the quality and safety of care, and decreased gaps in healthcare access and outcomes between different groups. It has also slowed the growth of healthcare spending and premiums. The law has, however, also encountered numerous difficulties and conflicts, including legal disputes, political opposition, technological difficulties, shifts in public opinion, and persistent problems with affordability, access, and quality.

The ACA is a complicated and extensive statute that has an impact on a variety of societal and medical issues. This page gives a summary of some of its most important provisions, effects, and difficulties. Visit and the U.S. Department of Health and Human Services (HHS) websites for further information.