Affordable Care Act

Affordable Care Act

AffordableCare Act

AffordableCare Act

AffordableCare Act (ACA) was enacted in March 2010 to offer Americans improvedhealth security by putting up a comprehensive health insurancereforms ( (ACA) Resources, 2013). The AffordableCare Act reforms targets to increase the health care benefits toabout 55 million Americans with no health coverage and other peoplewith inadequate insurance. The law stipulates the standards requiredto be met by all the insurers. The following are the key componentsmaking up the Act.

  1. Eligibility

The broadens the inclusion of insurance to thepoorest Americans by offering an opportunity for the states to changeits Medicaid eligibility, to include individuals below the age of 65earning an income of about 133 percent of the federal poverty level(FPL) ( (ACA) Resources, 2013). This was atransformative policy which saw the coverage of adults with lowincome with no children for the first time in the history of Americahealthcare.

  1. Financing

Thenewly eligible adults for coverage, are given full funding for threeyears by the federal government, this started last year, 2014climaxing by the year 2020 to reach 90% phase down (Affordable CareAct (ACA) Resources, 2013).

  1. Information Technology systems and Data

Toeffectively implement the affordable Care Act, substantial investmentin information Technology systems was developed and codified animportant framework on financial structure and policy to equip thestates with the tools for the launch of the ACA last year 1stJanuary 2014 ( (ACA) Resources, 2013).

  1. Coordination with Affordable Insurance Exchanges

The developed a framework of coverage that leveragebetween the Children’s Health Insurance Program (CHIP), AffordableInsurance Exchanges and the Medicaid (Florida, 2011). The Act makesan integrated system which allows the families and individuals applyfor the different insurance programs in a single process using asingle application. Before the approval is given, the applicants’eligibility is determined.

  1. Benefits

Thisact creates several amendments to the benefits given to Medicaidmembers.

  1. Drawback of ACA

Newtaxes were introduced to source the money required to insure all thepeople. Ultimately high earners are significantly affected as theywould pay more through taxes (Florida, 2011).

  1. Community- Based Long-term Services and supports

Thisact is inclusive of different programs and funding enhancements thatensure people have long-term care services and improves theircommunity or home. The law acts as a financial incentive for thestates and initiates a range of options that targets to offercommunity and home-based supports and services ((ACA) Resources, 2013).

  1. Quality of Care and Delivery systems

Theact sets to enhance the quality of care and the means with which suchcare is offered while reducing costs.

  1. Impact on the Medicaid and Medicare

The enhance the transparency on the policies of theMedicaid and Medicare programs, this involves the creation ofessential opportunities that involve the public in the development offederal and state Medicare and Medicaid waivers ((ACA) Resources, 2013).

  1. Tax subsidies

Theact provides greater benefits to the low income earners, which in thelong run grant subsidized tax payment while at the same time offersan improved health care policy ( (ACA) Resources,2013).


AffordableCare Act (ACA) Resources. (2013). Houston, TX: National Network ofLibraries of Medicine, South Central Region.

Florida,B., (2011). The affordable care act (ACA) patient and provider.Tallahassee, FL: The Florida Bar.