Obamacare (Patient Protection and Affordable Care Act)
On March 23, 2010, President Barack Obama signed the Patient Protection and Affordable Care Act (PPACA) into law. Popularly known as Obamacare, the PPACA sought to bring government reform to America’s health care system. For better or for worse, it is one of the most bitterly contested pieces of national legislation in recent history.
The PPACA bill was first introduced in response to the argument that healthcare costs were on the rise because a large number of uninsured individuals who could not afford to pay for but nevertheless received care were raising premiums for everyone else. Legislators such as Senator Baucus recognized this problem, and with the election of President Obama, the 111th Congress decided to try their hand at what the 103rd Congress could not accomplish in 1994, namely, produce a bill that would bring universal health coverage to all American citizens.
The heart of PPACA consists of three provisions: guaranteed issue (insurers must offer coverage regardless of the applicant's health status or pre-existing conditions), community rating (insurers must offer policies within a given territory at the same price regardless of health status, age, gender or other factors), and an individual mandate. The individual mandate assures that everyone has a minimum amount of coverage: those above a certain annual income are required to purchase coverage or incur a tax penalty; those who cannot afford it will have their coverage paid for by the government. Proponents of the law contend that this way everybody is able to receive adequate care, and the cost of healthcare overall will go down.
In contrast, opponents of the PPACA utterly reject the idea of an individual mandate, calling it unconstitutional and an invasion of individual rights and privacy. Obamacare opponents also question many of the law’s alleged benefits, producing numerous accounts and figures claiming that the PPACA would drive up costs, create a huge regulatory mess, and restrict health care options for patients and doctors.
The year following the passage of the Patient Protection and Affordable Care Act saw many lawsuits advanced against its contents. Although many courts held that the law is constitutional, several key courts have determined that Congress overstepped its bounds by passing the law. As Obamacare continues to be implemented and challenged throughout the country, this section will help readers understand the law and its implications for their lives.
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