The Affordable Care Act is a health insurance legislation enacted in 2010 under the Obama administration. It focuses on expanding Medicaid eligibility to low-income individuals and families and raising the income threshold for Medicaid eligibility. Additionally, the policiy established Health Insurance Marketplaces which allow individuals and small businesses to compare and purchase insurance plans. The law was created for three main purposes; Forst, to make health insurance available and affordable to more people through subsidies that lower costs for households with incomes between 100% and 400% of the federal poverty level (FPL). Second, expansion of Medicaid program to cover all adults with income below 138% of the federal poverty line. Thirdly, to support innovative medical care delivery methods designed to lower the costs of health care generally.

The eligibility criteria for enroll for the Affordable Care Act, one must be living in the United States. Also, the person must be a U.S. citizen or national or be lawfully present. Additionally, such a person must not be incarcerated in prison or jail. Under the Affordable Care Act, young adults can stay on their family’s insurance plan until age 26. Also, under the ACA there are no lifetime or annual limits on coverage for essential health benefits. Furthermore, coverage is provided for all people, including those with pre-existing conditions.

The amount payable as premium to insurers depends on where a person live, their income, and the size of their household. It provides a health insurance option to people who can’t get coverage through an employer. The ACA health policy prohibits lifetime monetary caps on health insurance plans. It also forbids insurers from canceling health insurance unless there are cases of fraud. Furthermore, it equires insurers to use a minimum percentage of premiums to pay for members’ medical services.