{"id":10952,"date":"2023-08-30T16:30:00","date_gmt":"2023-08-30T16:30:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=10952"},"modified":"2025-08-24T14:46:23","modified_gmt":"2025-08-24T14:46:23","slug":"what-exactly-is-the-affordable-care-act","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/health-insurance\/what-exactly-is-the-affordable-care-act\/","title":{"rendered":"What Exactly is the Affordable Care Act?"},"content":{"rendered":"<section class=\"c-section  \" id=\"default-block_b1f36e702718c17e5d9564f65da907d9\">\n    <div class=\"o-wrapper \">\n        \n                            <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p style=\"text-align: left\"><span style=\"font-weight: 400\">For those new to shopping for <\/span><a href=\"https:\/\/www.freeway.com\/insurance-options\/health-insurance\/\"><span style=\"font-weight: 400\">health insurance<\/span><\/a><span style=\"font-weight: 400\"> and wondering what exactly is the Affordable Care Act?, here are a few facts you should know:<\/span><\/p>\n<p style=\"text-align: left\"><span style=\"font-weight: 400\">The federal <\/span><a href=\"https:\/\/www.freeway.com\/insurance-options\/health-insurance\/types-of-health-insurance\/affordable-care-act-bill\/\"><span style=\"font-weight: 400\">Affordable Care Act (ACA)<\/span><\/a><span style=\"font-weight: 400\">, also referred to as Obamacare, is a comprehensive health care reform law that ensures all U.S. citizens and nationals, or those lawfully present in the country, access to affordable health care coverage \u2013 regardless of medical history.\u00a0<\/span><\/p>\n<p style=\"text-align: left\"><span style=\"font-weight: 400\">Enacted to provide Patient Protection, the ACA originally included an individual mandate that required most Americans to have health insurance or face financial penalties on their taxes. While the individual mandate is no longer in effect in most states, the ACA continues to play a significant role in shaping the health care landscape in the United States.\u00a0<\/span><\/p>\n<p style=\"text-align: left\"><span style=\"font-weight: 400\">Under the ACA, you cannot be denied health care due to a previous illness or pre-existing condition \u2013 thus giving everyone seeking health insurance coverage the opportunity to obtain it. The ACA also provides federal government subsidies to assist those meeting income requirements with a means by which to be insured, while reducing their out-of-pocket costs.\u00a0<\/span><\/p>\n<p style=\"text-align: left\"><span style=\"font-weight: 400\">With the ACA, those enrolling in a health plan are covered by an Essential Health Benefits package similar to a typical employer-sponsored plan. Discover how the ACA&#8217;s provisions have impacted Americans and learn about the financial assistance available to secure your health coverage.<\/span><\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Affordable Care Act Explained | Key Facts About Obamacare\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/PRYrGVmmsAs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n<section class=\"c-section  \" id=\"default-block_e866e8fd85c3337161d565b6f3ab54c7\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">Key Features of the Affordable Care Act<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p><span style=\"font-weight: 400\">The <\/span><a href=\"https:\/\/www.healthcare.gov\/glossary\/affordable-care-act\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">Affordable Care Act<\/span><\/a><span style=\"font-weight: 400\"> ensures several essential benefits that have transformed the healthcare landscape in the United States:<\/span><\/p>\n                <\/div>\n                        \n                            <div class=\"c-sections__list-column \">\n                    <ol>\n<li><b> Protection Against Pre-existing Conditions:<\/b><span style=\"font-weight: 400\"> Health insurance companies can no longer deny coverage to individuals based on pre-existing medical conditions. This provision has been a game-changer, ensuring that those with existing health issues can access the care they need without the fear of being denied coverage.<\/span><\/li>\n<li><b> Elimination of Medical Exams:<\/b><span style=\"font-weight: 400\"> One of the barriers that used to stand in the way of obtaining health insurance was the requirement to pass a medical exam. Under the ACA, individuals seeking coverage no longer need to go through this process, simplifying the application and enrollment process.<\/span><\/li>\n<li><b> Inclusion of Non-U.S. Citizens:<\/b><span style=\"font-weight: 400\"> The ACA extends its benefits beyond U.S. citizens and nationals. Individuals who aren&#8217;t U.S. citizens or nationals can also qualify for health coverage for themselves and their families, promoting inclusivity and ensuring a broader reach of healthcare services.<\/span><\/li>\n<li><b> Coverage for Young Adults:<\/b><span style=\"font-weight: 400\"> The Affordable Care Act addresses a common concern for young adults. It allows individuals to stay on their parents&#8217; health care plan until the age of 26. This provision has provided a safety net for young adults who might otherwise face difficulties in accessing affordable healthcare coverage as they transition into the workforce and independent living.<\/span><\/li>\n<\/ol>\n<h3><span style=\"font-weight: 400\">The Individual Mandate<\/span><\/h3>\n<p><span style=\"font-weight: 400\">An integral component of the Affordable Care Act was the individual mandate, which required most Americans to have health insurance coverage or pay a penalty. This provision aimed to encourage a larger pool of insured individuals, spreading the financial risk and promoting a more stable healthcare system. However, it&#8217;s important to note that the individual mandate&#8217;s penalty was effectively reduced to $0 starting in 2019 under the Tax Cuts and Jobs Act. Some states, such as <\/span><a href=\"https:\/\/www.freeway.com\/california-health-insurance\/\"><span style=\"font-weight: 400\">California<\/span><\/a><span style=\"font-weight: 400\">, still have a health insurance mandate.<\/span><\/p>\n                <\/div>\n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"c-section c-section--top-0-spacing c-section--bottom-0-spacing \" id=\"default-block_4d8204fb3e769e65bfa0fbc80315627c\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">Exploring the Basics of Health Insurance Marketplaces<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p><span style=\"font-weight: 400\">Navigating the <\/span><a href=\"https:\/\/www.freeway.com\/knowledge-center\/health-insurance\/enrolling-in-a-health-insurance-plan\/what-is-a-health-insurance-marketplace\/\"><span style=\"font-weight: 400\">Health Insurance Marketplace <\/span><\/a><span style=\"font-weight: 400\">is central to comprehending the Affordable Care Act (ACA). The Covered California Marketplace, in particular, ensures that each offered health insurance plan encompasses the essential benefits mandated by the ACA. These benefits span doctor visits, preventive care, hospitalization, pregnancy and newborn care, prescription drugs, and more. Prior to making your selection, you can compare plans based on price, benefits, quality, and other critical features to identify the optimal fit for your needs.<\/span><\/p>\n<h3 style=\"text-align: left\"><strong>Eligibility and Financial Support in California<\/strong><\/h3>\n<p><span style=\"font-weight: 400\">Eligibility for health coverage is influenced by factors such as citizenship, residency status, monthly income, and the Federal Poverty Level (FPL). Depending on your income, you could qualify for no-cost or <\/span><a href=\"https:\/\/www.freeway.com\/knowledge-center\/health-insurance\/understanding-health-insurance\/6-ways-keep-health-care-costs-low\/\"><span style=\"font-weight: 400\">low-cost health insurance<\/span><\/a><span style=\"font-weight: 400\">, including <a href=\"https:\/\/www.freeway.com\/insurance-options\/health-insurance\/types-of-health-insurance\/medical-health-insurance\/\">Medi-Cal insurance<\/a> \u2013 California&#8217;s equivalent of Medicaid. Under specific circumstances, even health insurance for undocumented immigrants might be accessible through Medi-Cal, although to a limited extent. <a href=\"https:\/\/www.freeway.com\/insurance-options\/health-insurance\/types-of-health-insurance\/covered-california\/\">Covered California<\/a> also extends optional plans for immigrants who do not meet the criteria for Medi-Cal.<\/span><\/p>\n<h3 style=\"text-align: left\"><strong>Enrollment and Special Circumstances<\/strong><\/h3>\n<p><span style=\"font-weight: 400\">Though the 2016 <\/span><a href=\"https:\/\/www.freeway.com\/knowledge-center\/health-insurance\/enrolling-in-a-health-insurance-plan\/health-insurance-open-enrollment-in-california\/\"><span style=\"font-weight: 400\">open enrollment<\/span><\/a><span style=\"font-weight: 400\"> period for Covered California occurred between November 1, 2015, and January 31, 2016, enrollment windows can vary. Failing to secure health insurance within these windows could result in penalties. However, significant life events such as marriage, divorce, or childbirth are considered &#8220;qualifying life events,&#8221; enabling you to apply for special enrollment through Covered California and obtain health coverage outside the standard enrollment period.<\/span><\/p>\n<h3 style=\"text-align: left\"><strong>Understanding the Federal Poverty Level<\/strong><\/h3>\n<p><span style=\"font-weight: 400\">Central to determining eligibility is the Federal Poverty Level (FPL). This standard measures income against the cost of living, assisting people in assessing their qualification for financial assistance. Whether you&#8217;re an individual, a family, a student, an immigrant, or a small business owner, understanding the FPL is crucial for determining your eligibility for coverage.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In summary, <\/span><a href=\"https:\/\/www.healthcare.gov\/coverage\/what-marketplace-plans-cover\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">Health Insurance Marketplaces<\/span><\/a><span style=\"font-weight: 400\">, like the Covered California Marketplace, simplify ACA access. Eligibility, the Premium Tax Credit, and special enrollment ensure inclusive and affordable healthcare. Recognizing the significance of the Federal Poverty Level aids in comprehending eligibility across diverse demographics.<\/span><\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<div class=\"wp-block-image is-style-default\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.freeway.com\/blog\/wp-content\/uploads\/sites\/3\/2023\/08\/Freeway-Directive-Reop-ACA2.jpg\" alt=\"Smiling mother and young child with doctor\" class=\"wp-image-26320\" style=\"width:790px;height:527px\" \/><\/figure><\/div>\n\n<section class=\"c-section  \" id=\"default-block_f34358119b560da4d3e052df0432bf70\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">How Will the Affordable Care Act Evolve in the Future?<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p><span style=\"font-weight: 400\">As we peer into the future of the Affordable Care Act (ACA), it&#8217;s evident that changes are on the horizon, promising both challenges and opportunities. The ACA, a transformative health care law, has significantly impacted the American health care system by increasing access to coverage and emphasizing preventive care.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">One of the focal points in the ACA&#8217;s future lies in fostering continued innovation within health care delivery and insurance options. Insurers are poised to adapt to changing dynamics, offering a broader range of ACA-compliant health insurance plans that cater to diverse individual and family needs. The health insurance exchanges, which have been instrumental in facilitating coverage enrollment, will continue to evolve to ensure a seamless experience for consumers.<\/span><\/p>\n<p><span style=\"font-weight: 400\">With the ACA firmly entrenched, the relationship between employees and employers is also set to evolve. Businesses will navigate new options and strategies to provide comprehensive health care benefits for their employees while maintaining competitiveness in the market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The ACA&#8217;s employer mandate and shared responsibility provisions will continue to shape the landscape of employer-sponsored health coverage, encouraging businesses to seek innovative ways to provide effective health care benefits to their workforce.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">As the ACA adapts and transforms, the future of the healthcare system is intertwined with its ability to accommodate changes, provide options, and balance the needs of insurers, employers, and individuals in creating a healthier nation.<\/span><\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"c-section c-section--top-0-spacing c-section--bottom-0-spacing \" id=\"default-block_7ddf398dc66460b771a82f5f1668a44f\">\n    <div class=\"o-wrapper \">\n        \n                                    <h2 class=\"c-section__title\">Find Your Ideal Healthcare Coverage<\/h2>\n                                        <h3 class=\"c-section__title c-section__title--black\"><\/h3>\n                <div class=\"c-section__content c-section__content--small-top-margin\">\n                                            <div class=\"s-cms-content\">\n                    <p><span style=\"font-weight: 400\">Navigating the complex landscape of health insurance can be daunting, leaving many feeling overwhelmed and uncertain. If you&#8217;re currently without coverage or have recently become uninsured, there&#8217;s a guiding light to lead you through the confusion \u2013 Freeway Insurance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Freeway Insurance has been offering exceptional support and expert guidance to its insurance customers since 1987.In collaboration with <\/span><a href=\"https:\/\/www.coveredca.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">Covered California<\/span><\/a><span style=\"font-weight: 400\"> and reputable national carriers, Freeway Insurance can help you apply for and fill out your healthcare application so you receive the care you need.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Take the first step today to explore various <\/span><a href=\"https:\/\/www.freeway.com\/insurance-options\/health-insurance\/types-of-health-insurance\/\"><span style=\"font-weight: 400\">health insurance options<\/span><\/a><span style=\"font-weight: 400\">, ranging from affordable health insurance plans to those designed to lower costs and enhance your access to medical care.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Don&#8217;t put off securing your health or miss out on critical enrollment periods. <\/span><span style=\"font-weight: 400\">Get a free <\/span><a href=\"https:\/\/www.freeway.com\/health-quote-form\/\"><span style=\"font-weight: 400\">health insurance quote online<\/span><\/a><span style=\"font-weight: 400\"> or give us a call at <\/span><span style=\"font-weight: 400\">800-777-5620<\/span><span style=\"font-weight: 400\"> to get started.<\/span><\/p>\n                <\/div>\n                        \n                                    \n            \n            \n                    <\/div>\n    <\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1002629,"featured_media":11129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"importance":[],"type-content":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/10952"}],"collection":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/users\/1002629"}],"replies":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=10952"}],"version-history":[{"count":4,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/10952\/revisions"}],"predecessor-version":[{"id":12119,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/10952\/revisions\/12119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media\/11129"}],"wp:attachment":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=10952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=10952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=10952"},{"taxonomy":"importance","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/importance?post=10952"},{"taxonomy":"type-content","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/type-content?post=10952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}