888-765-5400History of the Affordable Care Act
It has now been 5 years since President Barack Obama signed into law what is officially called The Affordable Care Act (ACA), but often referred to as Obamacare. All of us have heard of it and most of us have felt its effects in one way or another, but because of the complexity of the law, many Americans still have questions. Because the Affordable Care Act is perhaps the greatest change the U. S. health care system has ever seen, it is important to understand how the ACA affects you and your family.
One of the key changes provided by the ACA is that health coverage is now available for adults with pre-existing conditions. Health insurance companies are no longer permitted to ask health questions of any kind (with the exception of whether or not a consumer smokes) and the price of an insurance policy is not dependent on the health condition of the consumer. What this means is that insurance companies are required to provide health insurance to any adult aged 19 to 64 who applies for coverage. In addition, the Affordable Care Act requires individual and group health plans to publicly report their medical loss ratios (MLR), which represent the percentage of each premium dollar spent on health care services and quality improvement. Furthermore, there is now a minimum dollar requirement that health insurance companies must spend to pay claims and provide health related services. If the company falls below the minimum requirement, they must provide an annual rebate to policy holders.
Other important changes are that health policies are now required to offer 10 minimum essential benefits in every health plan, young adults can stay on their parents’ insurance until age 26, even if they are not full time students, and health insurance companies can no longer set any limits or maximum payouts on behalf of a member annually or over the course of his or her lifetime.
These changes have made a big impact on the health insurance industry and many Americans are feeling those changes as the cost of insurance premiums has increased substantially. Primarily, these increases are due to the above factors and the fact that the demographic of insured individuals has shifted, creating an increase in the number of claims being filed annually.
As a point of fact, on March 4, 2015, the U.S. Supreme Court heard oral arguments for a court case involving the Affordable Care Act. The lawsuit King vs. Burwell was filed to challenge a U.S Treasury regulation issued under the ACA, wherein King argued that the regulations implemented by the IRS to distribute federal subsidies exceed the authority granted to it by Congress. The Supreme Court ruled in favor of the ACA.
The most important thing to keep in mind is that the Affordable Care Act has brought about many changes for Americans regarding health insurance, how it is purchased, and how much it costs. Likely, more changes will come as the current and future Administrations weigh and balance the implications of the Affordable Care Act and how it affects consumers.
Blue Cross Blue Shield of NC is committed to providing quality health coverage to the residents of North Carolina and to helping its members understand the ACA and how it affects your health insurance plan and premium. Keeping you and your family covered and offering the peace of mind that comes from knowing you have what you need for your health care needs is what BCBSNC is all about.
For more information on Blue Cross Blue Shield of North Carolina health insurance coverage, the Marketplace and healthcare gov to apply for your subsidy, please visit our website at www.nchealthplans.com or call our toll free number 888-765-5400 and speak with one of our experienced and professional agents. Let us help you navigate through the Health Care Reform changes in accordance with the new regulations of The Affordable Care Act, also known as Obama care.