What Does the Affordable Care Act Really Mean?

With the United States facing significant changes in many areas, including health care, trying to understand what the Patient Protection Affordable Care Act (ACA) may evolve into is an unknown.

According to many industry watchers, since the ACA was enacted, over five millions people saw their health insurance policies discontinued because they did not meet ACA standards. Those plans were labeled as being unsatisfactory. However many scrapped plans offered more and were more valuable to customers than what was being sold under the auspices of the ACA.

What are the possible differences between the ACA and what may happen if it is repealed?

• The ACA plans are focused on preventive care
• According to the law, many of the services are covered without co-pay
• Many of the services are not subject to co-insurance
• Many of the services do not have a deductible
• These services are supposedly free, but as benefits, they add to premium costs
• Added premium costs are paid for by policy holders on the front end
• Health Savings Account-like plans are in the Bronze category under the ACA with a family deductible of over $12,000

The number of claims an insurance carrier gets determines premium costs. There is no underwriting under the ACA, which increases an insurance company’s claim expenses. Increased costs for the increased risks translate into higher premiums. To bring costs down many carriers have restricted their networks of hospitals and doctors — a turn of events that means Americans may have to change doctors or change insurance carriers.

If the ACA is repealed and a different kind of health care system comes into play, such as the system in existence before the ACA was passed into law, the following may be implemented:

• Insurance plans would focus on major medical
• Health Savings Accounts with a High Deductible Health Plan or plans similar in nature may return
• Prescription drug coverage and doctor visit co-pays were applied to the deductible
• Monies in the savings account could pay for drugs and doctor visits
• Many people can pay $100 to $200 to visit a doctor

The possible repeal of the ACA and what would replace it is unknown. If the old system is revitalized, consumers may well see more choices and competitive rates and plans.

While the repeal of ACA is ongoing, the prospect for more fair insurance rates and a return to better plans may be hovering on the horizon.