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The Affordable Care Act Becomes Law
On March 23, 2010, President Obama signed the Affordable Care Act. The law puts in place comprehensive health insurance reforms that will be implemented over four years and after. -
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Recent History of Affordable Care Act
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$250 Rebate Checks Are Sent to Seniors
The first $250 rebate checks are sent to seniors who fall into Medicare’s “donut hole” and have to pay all their own drug costs out of pocket. In the first year of this new reform, nearly four million people fell under this reform and recieved assistance. -
Extending Coverage for Young Adults
Young adults are now allowed to stay on their parent’s insurance plan until they turn 26 years old. However, this right does not apply if the young adult is offered insurance at their place of work. -
Providing Free Preventive Care
All new plans must cover certain preventive services such as mammograms and colonoscopies without charging a deductible, co-pay or coinsurance. -
Prescription Drug Discounts
In 2011, seniors who reach the coverage gap receiveed a 50 percent discount when buying Medicare Part D covered brand-name prescription drugs. Over the next ten years, seniors will receive additional savings on brand-name and generic drugs until the coverage gap is closed in 2020. -
Bringing Down Health Care Premiums
The new law requires that at least 85% of all premium dollars collected by insurance companies for large employer plans are spent on health care services and health care quality improvement. For plans sold to individuals and small employers, at least 80% of the premium must be spent on benefits and quality improvement. If insurance companies do not meet these goals, they must provide rebates to their customers. -
Lowering Costs for American Consumers
Health insurers seeking to increase their rates by 10 percent or more must submit their request to state or federal reviewers to determine whether their request is reasonable or not. These reviews will bring greater accountability to the companies and may lower costs for families and small business owners who struggle to afford coverage. -
Savings for Small Business Owners
A tax credit is refunding small business owners up to 35 percent of the premiums they pay for their workers. More than 2 million workers have received coverage because of this benefit. -
Protecting Taxpayer’s Money
The Affordable Care Act includes new tools to fight fraud, strengthen Medicare and protect taxpayer dollars. When federal authorities announced they’d busted a Texas scheme that frauded Medicare of $375 million, the cumulative savings since the law’s signing hit $10.7 billion. -
Expanded Authority to Bundle Payments
The law establishes a national trial program to encourage hospitals, doctors, and other providers to work together to improve the quality of patient care. Under payment bundling, hospitals, doctors, and providers are paid a flat rate for an period of care rather than the current fragmented system where each service is billed separately.
