3 Things You Should Know About the Health Insurance Portability and Accountability Act
The Health Insurance Portability and Accountability Act (PPACA) or often referred to as the Affordable Care Act (ACA) is a law signed by the President of the United States, Barack Obama in 2010. This law aims to expand access to health insurance for American society and improve the quality of health care. Here are three things you should know about the law.
PPACA also stipulates that health insurance companies must offer the same basic health benefits to everyone. These benefits cover regular health checks, emergency care, medicines, and hospitalization.
PPACA provides financial assistance to help people who cannot afford health insurance. This financial assistance is provided in the form of premium subsidies and cost reductions from health benefits. People with income below 400% of the state poverty line can qualify for this financial assistance.
In addition, PPACA also created a new health insurance market, known as the health exchange market. This marketplace allows people to compare and buy health insurance from different health insurance companies.
The PPACA sets additional requirements for companies that offer health insurance for their employees. Companies that employ more than 50 employees must offer health insurance that meets the minimum standards set by the PPACA or pay a penalty.
PPACA also stipulates that health insurance companies must issue a minimum of 80% of the premiums received to pay claims and health benefits. If the health insurance company does not meet these requirements, they must provide a refund to the insurer.
Conclusion
PPACA or the Affordable Care Act is an important piece of legislation in increasing access to health insurance for the American public. These laws regulate health insurance requirements, provide financial assistance to obtain health insurance, and provide additional requirements for health insurance companies and companies that offer health insurance for their employees.
In doing so, PPACA has expanded access to health insurance for millions of people in the United States who were previously not covered by the existing health insurance system. However, this law has also become controversial and has drawn criticism from a number of parties, especially because some of the requirements set out in the law are deemed burdensome for health insurance companies and other companies.
Nonetheless, PPACA remains an important part of the United States healthcare system. Along with the times, it is likely that there will be changes or adjustments in the application of this law. Because of this, it is important for the people of the United States to keep their knowledge updated about PPACA and how this law affects the health system in their country.
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