Problems With the Affordable Care Act

Ever since it got into existence, there have been problems with the affordable care act that you need to know for the benefits of both your business and yourself, at least on personal grounds. The affordable care act is intendedly a good one which, by the meaning of its name, affords people with several insurance opportunities that will facilitate better health standards for all and sundry.

The Affordable Care Act, also known as ACA, has really garnered a lot of debate since its implementation in 2010. Since it was signed into law in 2010, it has expanded Medicaid, created health insurance exchanges and allowed more than 23 million people to have health insurance in 2019 that would have otherwise gone without. Despite these wins, among others, 41 percent of Americans still view the ACA in an unfavorable light, according to a survey done by Statista. This continued disapproval of a law that was signed in 2010 indicate that there are real problems with the ACA beyond the partisan views of it.

The market continues to change as the healthcare reform debate continues. Initially, many health insurance companies—lacking the information they needed to ensure their financial stability—left the ACA’s marketplaces. As the marketplace stabilized, some companies returned, and others continue to expand their offerings.

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Problems With the Affordable Care Act

According to a West Health and Gallup, 30 percent of surveyed individuals did not seek needed medical treatment due to the cost from September to October 2021. Therefore, not only did the ACA fail to control the rising cost of insurance, but it also failed to make health care prescribed medicines affordable. In the light of these failures, you will be looking at some of the problems with the affordable care act.

1. The Price Does not Decreased for Everyone

Those who do not qualify for subsidies may find marketplace health insurance plans unaffordable. Customers may end up paying more for a plan that includes benefits, such as maternity care, that they may not need.

2. Company-Sponsored Health Plans Lose

Some businesses may find it more cost-effective to let their employees purchase their own individual insurance on the exchanges rather than provide employer-sponsored coverage.

3. There May be Tax Punitions

Prior to 2019, you could face large tax penalties if you were uninsured. The federal tax penalty no longer exists, but some states are now enacting health insurance mandates of their own.

4. High Cost of Health Care Insurance

This high cost of health insurance can partially be attributed to the increased risk pool health insurance companies are experiencing. By eliminating the individual mandate penalty, health insurance companies have had to raise their premiums and deductibles to cover the increased financial risk they were made to experience.

5. Shrinking Networks

Many insurance companies made their provider networks smaller to cut costs while implementing ACA requirements. This left customers with fewer providers that are “in network.”

6. Complicated Shopping for Coverage

Shopping for coverage can be complicated with limited enrollment periods, difficulties with the websites, and more coverage options.

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