5 Myths and truths about Affordable Care Act

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By: Good Nelly
on 2nd Aug,2012

The public opinion about the much talked about Affordable Care Act is divided. Some are in favor of the Act.
5 Myths and truths about Affordable Care Act


The public opinion about the much talked about Affordable Care Act is divided. Some are in favor of the Act. Some are completely against the new health reform. Others don't have to say anything about it. Most people think that they know ins and outs of the health reform. However, the real picture is completely different.

Participants of a quiz conducted by Kaiser Family Foundation could only answer 5-10 questions on Affordable Care Act correctly. This is not at all shocking as the health care reform consists of 2700 pages. Some of the features of the reform have not been written yet.

Numerous controversies surrounding Affordable Care Act and health reform have given rise to several fictions. Now that the Supreme Court has shown the 'green flag' to new health reform, perhaps it's the right time to know about the myths and truths about the Affordable Care Act.

Read along to know about the 5 common myths about Affordable Care Act. Dispel your misconceptions and know the truth.

Affordable Care Act - Find out the facts

Check out the 5 common myths and truths about Affordable Care Act.

Myth 1 - It is mandatory for the employers to offer insurance plan to employees.

It is not compulsory for the employers to offer health insurance plans to the workers. Affordable Care Act doesn't talk about any such thing. However, employers will be required to pay a penalty for not offering health insurance plans to the employees. However, small firms with less than 50 workers will be exempted. Moreover, the health care reform offers tax credit and other benefits through Small Business Health Options Programs to small businesses.

Myth 2 - Every citizen of the country must purchase health insurance policy.

Truth: Uninsured citizens of the country are required to purchase health insurance policy in 2014. People who don't have an insurance policy will be penalized. However, several sections of the society will be exempted. They won't have to pay a penalty or tax.

People who are exempted from penalty are:

    Individuals who have to exhaust 8% of their wage on health insurance
    Individuals belonging to low income group
    Individuals who don't have to pay tax to Uncle Sam
    Individuals who qualify for Medicare and Medicaid
    Individuals belonging to Native American Tribe
    Individuals who are illegal immigrants
    Individuals who are eligible for religious exemption

Myth 3 - There will be a universal health insurance plan run by Uncle Sam.

There is no such provision in the Affordable Care Act. Federal government aims to offer universal coverage by broadening the current Medicaid program. It will supervise the health insurance industry strictly. In addition to that, government will try to make the private health insurance policies within the reach of the people. The health reform talks about the origination of new insurance plans, but they won't be regulated or sponsored by the government. 

Myth 4 - Illegal immigrants will get financial assistance from the government for purchasing insurance policies.

Illegal immigrants don't come under the Affordable Care Act only. They won't qualify for Medicaid. They can't purchase insurance policies (out of their own pocket) through the state exchanges in the year 2014. Legal immigrants who are living in the country for less than 5 years won't qualify for federal aid as well.

Myth 5 - People insured through their employers won't be affected.

This is not true. Rather, several provisions of the health care reform will actually offer several benefits to the people insured through their employers. In fact, the Act prohibits the insurers from imposing lifelong limits on the amount they'll pay for employees' health care. Other than that, insurers won't be permitted to terminate the insurance policies of the employees impulsively.

There won't be any co-payments or deductibles for certain health services such as visit to gynecologists or obstetricians (without any reference) and cancer tests.

Another rumor which is circulating in the health insurance industry is that the new health law will cut down the Medicare benefits for all seniors. The truth is that Medicare benefits won't be affected by the health care reform at all.

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