In 2010, President Obama signed the Affordable Care Act (ACA) into law. ACA was the most significant healthcare reform since the country implemented the Medicaid program 45 years ago. The law transformed the countrys healthcare system by enhancing healthcare outcomes and lowering costs. The law reformed the private insurance market, expanded the Medicaid healthcare program to low-income workers with earnings up to 133 % of the countrys poverty level, and changed how healthcare providers make medical decisions to encourage value-based care. The Act held that individuals and institutions would act according to these reforms to improve medical care access and lower costs financed by spreading the risk across a large pool, which results in affordable care.
The Act has various components that lower healthcare costs. It provides health insurance tax credits to small businesses to enable them to provide health coverage to their employees. Over four million businesses receive tax credits to enable them to provide health insurance benefits to employees. In addition, the Act sends a $ 250 rebate to over four million eligible elderly persons to cover their prescription medication. It also provides free preventive care for certain services like mammograms. Seniors also receive discounts for prescription drugs and free preventive medical care for services like wellness checks. These components reduce out-of-pocket costs, which lowers healthcare costs. Also, the Act expanded Medicaid eligibility criteria to cover more people from poor backgrounds and prohibited insurance companies from denying people health coverage due to pre-existing conditions (Courtemanche et al., 2019). It also extends healthcare coverage to young adults by allowing them to remain on their parents insurance coverage until they reach 26 years. These components allow more people to access affordable healthcare. Moreover, the Act provides tax credits for more people to afford health insurance. It also provides insurance premium support to people earning 150 % of the countrys poverty level to increase healthcare insurance coverage (Zhao et al., 2020). These interventions make healthcare affordable.
In addition, the law contains various components that improve healthcare outcomes. It established the Prevention and Public Health Fund, a dedicated disease and illness fund to ensure a healthier nation. It also links payment to health outcomes, incentivizing healthcare settings to enhance quality. It also encourages integrated healthcare under accountable care organizations, allowing diverse healthcare providers to collaborate to coordinate care provision, improve care quality, prevent illnesses, and reduce hospital readmission (Chait & Glied,, 2018). It also enhances care for the elderly after they are released from the hospital by connecting them to community-based services to manage their conditions better. ACA components lower costs and improve health outcomes.
