The Obamacare also known as the Affordable Care Act signed into law in 2010 aimed to provide affordable health coverage to all Americans. It was meant to protect the people against insurance strategies used by insurance companies to restrict care or drive up costs. Here are the advantages and disadvantages of Obamacare.
The Pros of Obamacare
1. Many Americans Now Have Insurance Coverage.
Over 16 million people obtained a health insurance cover. A large percentage of these individuals were the young adults.
2. Made Health Care More Affordable.
Since insurance companies were now required to spend over 80% of the insurance premium on improvements and medical care, insurers were prevented from making unreasonable rate increments and instead cared more about their customers.
3. Limitless Care Time.
Prior to obamacare, most people especially those with chronic conditions ran out of care as the insurance companies had set time limit on how much money was to be spend on an individual.
4. More Screenings Are Done.
Obamacare covers many preventive and screening services. These normally have low deductibles or co-pays which is very handy to those who are proactive in their healthcare.
5. Lower Drug Costs.
Obamacare promised to make prescription drugs more affordable to many people especially the senior citizens who are unable to afford all their medications. The number of generic and prescription drugs covered by obamacare has been growing over the years. Savings on generic and prescription drugs was reported to be over $15 billion within the first 5 years of Obamacare.
The Cons of Obamacare
1. Increased Premium Costs.
Since the insurance companies are being forced to cover the costs of individuals with pre-existing conditions as well as provide a wide range of benefits, people are now being forced to pay higher premiums.
2. One Can Be Penalized In Case You Are Not Insured.
The aim of obamacare is to ensure people are insured all year round. Therefore if one is uninsured or doesn’t have an exemption, one is fined since it is considered that not having insurance means you are passing your costs onto others. The fine is expected to rise over time.
3. Signing Up Can Be Complicated.
Obamacare portal had numerous complications when it first launched. This made it very hard for people to sign up. Even though the problems were eventually solved, people still complained that the enrolling process was complicated as signing up for the right business and family coverage might be tricky.
Natalie Regoli, Esq. is the author of this post and the editor-in-chief of our blog. She received her B.A. in Economics from the University of Washington and her Masters in Law from The University of Texas School of Law. In addition to being a seasoned writer, Natalie has almost two decades of experience as a lawyer and banker. If you would like to reach out to contact Natalie, then go here to send her a message.