The Patient Protection and Affordable Care Act (PPACA) is a federal statute that was signed into United States law by President Barack Obama on March 23, 2010. This Act and the Health Care and Education Reconciliation Act of 2010 (signed into law on March 30, 2010) made up the health care reform of 2010. The laws focus on reform of the private health insurance market, provide better coverage for those with pre-existing conditions, improve prescription drug coverage in Medicare and extend the life of the Medicare Trust fund by at least 12 years.

The law includes numerous health-related provisions to take effect over a four-year period beginning in 2010. In order of their assessed impact the primary provisions are as follows:

• Guaranteed issue and community rating will be implemented nationally so that insurers must offer the same premium to all applicants of the same age, sex, and geographical location regardless of pre-existing conditions.
• Medicaid eligibility is expanded to include all individuals and families with incomes up to 133% of the poverty level.
• Health insurance exchanges will commence operation in each state, offering a marketplace where individuals and small businesses can compare policies and premiums, and buy insurance (with a government subsidy if eligible).
• Firms employing 50 or more people but not offering health insurance will pay a "shared responsibility payment" if the government has had to subsidize an employee's health care
• Non exempt persons not securing minimum essential health insurance coverage are also fined under the shared responsibility rules. This requirement to maintain insurance or pay a fine is often referred to as the individual mandate, though being insured is not actually mandated by law. Not being insured will not be a crime and no criminal penalty can attach to non payment of the fine. The fine serves to encourage most people into an insurance pool and to deter healthy individuals from buying insurance only when they become ill.
• Improved benefits for Medicare prescription drug coverage are to be implemented.
• Changes are enacted which allow a restructuring of Medicare reimbursement from "fee-for-service" to "bundled payments".
• Establishment of a national voluntary insurance program for purchasing community living assistance services and support.
• Low income persons and families above the Medicaid level and up to 400% of the poverty level will receive subsidies on a sliding scale if they choose to purchase insurance via an exchange (persons at 150% of the poverty level would be subsidized such that their premium cost would be of 2% of income or $50 a month for a family of 4).
• Very small businesses will be able to get subsidies if they purchase insurance through an exchange.
• Additional support is provided for medical research and the National Institutes of Health.
• Enrollment into CHIP and Medicaid is simplified with improvements to both programs.
• The law will introduce minimum standards for health insurance policies and remove all annual and lifetime coverage caps.
• The law mandates that some health care insurance benefits will be "essential" coverage for which there will be no co-pays.
• Policies issued before the law came into effect are "grandfathered" and are mostly not affected by the new rules.

See also

Federal pharmacy law

References

1. Wikipedia, Patient Protection and Affordable Care Act, http://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_Care_Act
2. HeathCare.gov, http://www.healthcare.gov