The Affordable Care & Patient Protection Act: Key Provisions

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Long-Term & Short-Term Disability Insurance

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:01 The Affordable Care Act
  • 0:28 Guaranteed Coverage
  • 1:15 Important Provisions
  • 2:34 Benefits
  • 3:10 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed Speed
Lesson Transcript
Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

In this lesson, you'll learn about the Affordable Care Act and how it impacts individuals with and without health insurance. You'll also learn what benefits it provides to those with health insurance.

The Affordable Care Act

On March 23, 2010, President Barack Obama signed into law the Patient Protection and Affordable Care Act (PPACA). Most people refer to it as the Affordable Care Act (ACA) or simply as Obamacare after the president's name. The purpose of the ACA is to increase the overall quality of health care, as well as to make health insurance more affordable for everybody.

Guaranteed Coverage

One of the provisions of the ACA is it guaranteed coverage for everybody. Prior to the ACA being signed into law, if you had a pre-existing condition you would often times be denied coverage when applying for individual health insurance. That is, if you were working for yourself and you needed health insurance, you had to be healthy in order to get health insurance.

Many health insurance companies denied coverage to people with pre-existing conditions because they viewed them as high-risk and in need of health care, which the insurance company would then have to pay for. But, under the ACA now, health insurance companies can't deny coverage to anyone anymore. If you have a pre-existing condition and you need health insurance coverage, they have to approve you for it and at the same rate they would offer to a healthy individual.

Important Provisions

Individual Shared Responsibility Provision

Along with this guaranteed coverage provision also comes the Individual Shared Responsibility Provision. This requires everybody to have health insurance. If you don't have health insurance, then you would pay a penalty with your federal taxes. Most people are required to pay the penalty for not having health insurance, but if your income is low enough, then you don't have to.

For tax year 2015, you are exempt from paying the penalty if you are single and earned less than $10,300 in gross income, or less than $20,600 in gross income if you are married filing jointly.

The Individual Shared Responsibility Provision also requires that whatever health insurance you have must give you minimum essential coverage. Most health insurance policies meet the minimum essential coverage requirement. But there are policies that cover only certain conditions, such as pregnancy-only coverage or emergency-only coverage. These policies don't meet the minimum essential coverage requirement.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support