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The Affordable Care Act Essay

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The Affordable Care Act (ACA)

Robin Shilstone
CF ID Number: 504249

President Barack Obama signed the Affordable Care Act, into law on March 23rd 2010. Congress had tried for decades to pass health care reform, beginning with President Franklin Roosevelt. Finally, President Obama pushed this Act into law with the Democrat control, and gave the federal government 16% of the United States economy. The law states that every American citizen is mandated to purchase health insurance. In 2014, if the consumer elects to ignore the law, and not purchase health insurance the consumer will be penalized in the amount of $95.00 or 1% of their income. In 2016, the penalty rate will be much higher in the amount of 2.5% of the …show more content…

The doughnut hole will be completely eliminated by the year 2020. The small business owner that has 25 or fewer employees, and provides health insurance for them, the owner will receive tax credits to ease the burden of the cost. The small business owner will receive 50% tax credit for a profit business and 35% tax credit for a non-profit business. There are four different levels of insurance that the consumer has the option to choose from. The Bronze level is the cheapest and will provide 60% of benefits under the health plan. Next, is the Silver level that will provide 70% of benefits, and the cost is more expensive. Next, is the Gold level that provides 80 % of benefits, and costs is still more expensive. The Platinum level is the highest, which provides 90% of benefits, and is the most expensive of all the health plans. The health plans will be purchased on-line that is state based at the Health Insurance Marketplace. Medicaid services will be expanded to consumers with incomes less than $14,000 person annually or family’s income less than $29,000 annually. At the market place insurance companies will compete against one another, which will benefit the consumer. The insurance companies that charge higher rates than their competitors will be driven out of business. The government will provide tax credits to consumers that have an annual income from 14,000 to 43,000. Large companies have to provide insurance to all of their employees or be penalized

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