Overview on Affordable Care Act (ACA)
                     AFFORDABLE CARE ACT 
(ACA)
Introduction
The “Affordable Care Act” (ACA) is the name for the 
comprehensive health care reform law and its amendments. 
The law addresses health insurance coverage, health care 
costs, and preventive care. 
Source: www.hhs.gov
About the Law
The law was enacted in two parts: The Patient Protection and 
Affordable Care Act was signed into law on March 23, 2010 
and was amended by the Health Care and Education 
Reconciliation Act on March 30, 2010.
Source: www.hhs.gov
Expanded Medicaid eligibility
The act expanded Medicaid eligibility, created health 
insurance exchanges, mandated that Americans purchase or 
otherwise obtain health insurance, and prohibited insurance 
companies from denying coverage (or charging more) due to 
pre-existing conditions.
Source: www.investopedia.com
Subsidies for coverage
Lower-income families qualify for subsidies for coverage 
purchased through the Marketplace.
Source: www.investopedia.com
Understanding the Affordable 
Care Act
The ACA was designed to reduce the cost of health insurance 
coverage for people who qualify for it. 
Source: www.investopedia.com
Premium tax credits
The law includes premium tax credits and cost-sharing 
reductions to help lower expenses for lower-income 
individuals and families.
Source: www.investopedia.com
Essential health benefits
• Laboratory services
• Ambulatory patient 
services • Mental health and 
substance use disorder 
• Breastfeeding
services
• Emergency services
• Pregnancy, maternity, 
• Family planning and newborn care
• Hospitalization • Prescription medications
• Preventive and wellness
Source: www.investopedia.com
Special Considerations
A critical part of the original ACA was the individual 
mandate, a provision requiring all Americans to have 
healthcare coverage—either from an employer or through 
the ACA or another source—or face tax penalties. The 
mandate was eliminated in 2017.
Source: www.investopedia.com
Criticism of the Affordable Care 
Act (ACA)
Critics of the ACA have pointed out that it represented an 
unprecedented expansion of federal power within the 
healthcare industry because it required all individuals to 
purchase a service (health insurance) whether they wanted 
to or not.
Source: www.investopedia.com
The Bottom Line
The Affordable Care Act (ACA) was created in 2010 and is 
more commonly known as Obamacare. It extended 
healthcare coverage to millions of previously uninsured 
Americans. 
The act required that all Americans purchase health 
insurance and prohibited insurance companies from denying 
coverage due to pre-existing conditions.
Source: www.investopedia.com