AFFORDABLE

HEALTH CARE ACT

OF 2010

OVERVIEW
Requires most U.S. Citizens and legal residents to have health

insurance.
Individuals can purchase coverage, with subsidizing for
individuals and families with an income between 133-400% of the
federal poverty level ($18,310 for a family of 3 in 2009).
Expands Medicaid to 133% of the poverty level.
Those without health care receive a tax penalty which increases
yearly.
Exemptions: financial hardship, religious objections, American
Indians, those without coverage for less than three months,
undocumented immigrants, incarcerated individuals, those for whom
the lowest cost plan option exceeds 8% of an individuals income,
and those with incomes below the tax filing threshold ($9,350 for
singles under 65 in 2009).

EXPANSIONS
Young adults up to age 26 can get coverage from their parents

health insurance plan, whether or not they live with their parents,
are in school, are single or unmarried.
Medicaid is available to all non-Medicare eligible individuals under

age 65 (children, pregnant women, parents, and adults without

dependent children) with incomes up to 133% of the FPL.
States receive 100% federal funding for 2014 through 2016,

slowly reducing for each of the following years.

States are required to maintain the current eligibility levels for

children in Medicaid and to extend the funding for the Childrens

Health Insurance (CHIP) through 2015.

SMALL BUSINESSES
Employees who are offered coverage by an employer are not

eligible for premium credits unless the employer plan does not
have an actuarial value of at least 60%.
Includes tax credits to purchase health insurance for employees

with a tax credit for small businesses whose employers have no

more than 25 employees and average annual wages of less than
$50,000.
Require most employers to participate in group plans.

PRE-EXISTING CONDITIONS
Health plans covering children can no longer limit or deny benefits

for kids up to age 19 because of pre-existing conditions.

In 2014, individuals of any age cannot be denied coverage or

benefits because of a pre-existing condition.

Plans wont be able to raise rates for babies and children for pre-

existing conditions.
Adults previously denied due to PECs can now receive health

care through the Pre-Existing Condition Insurance Plan (PCIP).

Children can also sign up.

MEDICARE PART B
Now includes
A yearly wellness exam
Preventive screenings for cholesterol, diabetes, HIV, flu shot,

mammograms, certain types of cancer, prostate, etc.

Tobacco Use Cessation Counseling

Medical Nutrition Therapy

Consult www.healthcare.gov for full listing.

PRESCRIPTION DRUGS
People enrolled in Medicare Part D were covered for a limited
amount of money. When this limit was reached they were required to
pay for their prescriptions in full. This is the coverage gap or
doughnut hole.
This coverage gap will be closed by 2020.
These people receive a 50% discount on name-brand prescription

drugs and 7% on generic prescription drugs.

This includes Medicare drugs, and drugs purchased through a

pharmacy or by mail.

INSURANCE COMPANIES
Determined by the Medical Loss Ratio, insurance companies

must spend 80-85% on care rather than administration.

Failure requires companies to refund money to customers.
Must charge men and women the same rates and cover

contraceptives.
Not required to cover abortion unless saving the life of the woman

or cases of rape or incest (Hyde amendment).

Starting on January 1, 2014, insurance companies will not be able

to place a dollar limit on how much is covered per year.

TAXES
$123 Billion: Surtax on Investment Income: A new, 3.8% surtax on

investment income earned in households making at least $250,000

($200,000 single).
$86 Billion: Hike in Medicare Payroll Tax by 0.9% for all wages earned
past the first $200,000
$65 Billion: Individual Mandate Excise Tax and Employer Mandate

Tax
$60.1 Billion: Tax on Health Insurers: Annual tax on the industry

imposed relative to health insurance premiums collected that year. Phases in

gradually until 2018. Fully-imposed on firms with $50 million in profits.
$23.6 Billion: Black liquor tax hike: Increased on a type of bio-fuel.
$22.2 Billion: Tax on Innovator Drug Companies: $2.3 billion annual tax
on the industry imposed relative to share of sales made that year.
$20 Billion: Tax on Medical Device Manufacturers: This law imposes a
new 2.3% excise tax. Exempts items retailing for <$100.
$2.7 Billion: Tax on Indoor Tanning Services: 10% excise tax on
Americans using indoor tanning salons.
$0.6 Billion: $500,000 Annual Executive Compensation Limit for Health
Insurance Executives.

THE INSURED
The Congressional Budget Office estimate the legislation will reduce the number
of uninsured residents by 30 million, leaving 25 million uninsured residents in
2019. A July 2012 CBO estimate raised the expected number of uninsured by 3
million, reflecting the successful legal challenge to PPACA's expansion of
Medicaid.
Among the people in this uninsured group will be:
Illegal immigrants, estimated to be around 8 million
Citizens not enrolled in Medicaid despite being eligible.
Citizens not otherwise covered and opting to pay the annual penalty instead
of purchasing insurance mostly younger and single Americans.
Citizens whose insurance coverage would cost more than 8% of household
income and are exempt from paying the annual penalty.
Citizens who live in states that opt out of the Medicaid expansion and who
qualify for neither existing Medicaid coverage nor subsidized coverage
through the states' new insurance exchanges.

BIBLIOGRAPHY
http://www.kff.org/healthreform/upload/8061.pdf
http://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_Care_Act
http://www.healthcareandyou.org/what-is/
http://www.healthcareandyou.org/what-is/young-adults/
http://www.healthcareandyou.org/what-is/medical-loss-ratio/
http://www.healthcareandyou.org/what-is/those-in-the-medicare-part-d/

http://www.healthcareandyou.org/what-is/insurance-companies/
http://www.healthcare.gov/law/features/65-older/medicare-preventive

services/index.html
http://jeffduncan.house.gov/full-list-obamacare-tax-hikes
http://obamacarefacts.com/obamacare-facts.php
http://c481901.r1.cf2.rackcdn.com/wp-content/uploads/2012/12/obamacarecartoon.jpg
http://img.allvoices.com/thumbs/image/609/609/91091156-obamacarebike.jpg