The Affordable Care Act

The ACA has had mixed effects on healthcare costs. While it led to slower growth in overall healthcare spending due to cost-saving measures and incentives for more efficient care, it didn’t entirely eliminate rising healthcare costs.

Health insurance marketplaces, also known as exchanges, allow individuals and small businesses to compare and purchase health insurance plans. These exchanges help create a more competitive market and provide a standardized platform to shop for healthcare coverage.

The ACA encouraged states to expand Medicaid eligibility, providing coverage to more low-income individuals. However, not all states expanded Medicaid, impacting the overall reach of the expansion’s intended coverage. 

The ACA emphasizes preventive care services by requiring insurance plans to cover specific preventive services without charging copayments or deductibles, aiming to improve population health and reduce long-term healthcare costs.

Tax credits under the ACA help eligible individuals and families offset the costs of health insurance premiums, making coverage more affordable. These credits are based on income and household size.

The Tax Cuts and Jobs Act of 2017 reduced the penalty for not having health insurance to $0, effectively eliminating the penalty for not having coverage, although the requirement for coverage still stands.

The ACA includes provisions that require insurance plans to cover mental health and substance use disorder services as essential health benefits, offering parity between mental and physical healthcare.