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The Affordable Care Act has been doing a great job in ensuring that the rate of uninsured persons in the US is lowered every day. But still it has a long way to go.
What does uninsured term signify?
The term uninsured signifies the number of US citizens who currently don’t have any form of health care insurance from any source.
There are many reasons why people choose to abstain from purchasing any form of health insurance coverage, be it from the government or private sources. The primary reason for such behavior is mainly because of the high monthly premium amounts, which can hit the pockets of an average earning citizen very gravely. Some of the other reasons are lack of awareness about the benefits of having a health insurance and denial of coverage by insurance providers because of some existing health disorders.
Why Obamacare was introduced?
Millions of Americans didn’t have any health insurance before the Obamacare Act was formed. This caused the government to spend millions of dollars every year. Moreover the high cost of availing medical treatments forced many people to go bankrupt during times of medical emergencies. Additionally malpractices practiced in the system also added further to the problem. To curb these negative effects, the Obamacare Act was formed.
How Obamacare is bringing down the rates?
The first thing that the Obamacare Act enforced is that everyone except the utmost poor of the society should possess at least basic health insurance. Otherwise a fee is charged every month for the number of uninsured in a family. Secondly it mandated that no insurance provider can deny coverage to any person who are suffering from some health disorders or falter on the payments due to some lame excuses. Thirdly it mandated the large companies to provide insurance for their employees and offered tax relaxations on small scale companies. Fourthly it offered handsome subsidies for people whose annual income fell below the Federal Poverty Line. Lastly it introduced a host of minimum essential benefits that every plan must provide at an affordable and regulated premium rates.
Since the introduction of the Obamacare Act, the rates of uninsured have fallen drastically in the initial years. But with the recent change in the presidential administration, some clauses in the act are amended and the premium rates have also gone up manifolds. This has slowed the rate a bit keeping it at an average of around 10% since 2016. Below is a comprehensive analysis of the uninsured rates over the years.
Judging by the above figures the effect of the Obamacare Act on the American Healthcare system can be felt and understood.
Many economists feel that with progressing years the rates are going to fall further as more and more people gain awareness about the benefits of purchasing a health insurance plan offered under the Obamacare Act.