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Discover Common Myths About Obamacare
This information is provided for educational and informational purposes only and does not constitute providing medical advice, legal advice, financial advice or professional services. The information provided should not be used for diagnosing or treating a health problem or disease, and those seeking personal medical advice should consult with a licensed physician.
In 2012, the Affordable Care Act (ACA), otherwise known as Obamacare, was approved by the Supreme Court and put into effect. Under the Affordable Care Act, the quality, availability and affordability of healthcare services expanded to reach a larger population – mostly those who could not afford healthcare, normally. However, Obamacare was not received with open arms by everyone. With the considerable negative backlash, it became difficult to see what was really good about the program. Due to the complex nature of the United States healthcare system, there are many myths flying around. In this day and age, where any information can be obtained at the click of a few keys, it is difficult to discern what information is credible and what is not. To combat that, discover some of the most common myths about Obamacare below:
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- Myth 1: Obamacare and the Affordable Care Act Are Not the Same
- Myth 2: Obamacare is What Creates Health Insurance
- Myth 3: All Beneficiaries Must Use the Health Insurance Marketplace
- Myth 4: Having Obamacare Means Paying Higher Premiums
Myth 1: Obamacare and the Affordable Care Act Are Not the Same
Obamacare and the Affordable Care Act are the same thing. Obamacare is traditionally known as the Affordable Care Act, and in legal documents and legislation, both names may appear. Furthermore, if a beneficiary picks up any sort of healthcare form, it should have Obamacare or the ACA on the forms. Obamacare was originally used to make fun of the bill, and as a result of overuse, continued to stand in as the most common name for the Affordable Care Act.
Myth 2: Obamacare is What Creates Health Insurance
How this myth got started is unclear, but Obamacare does not create health insurance, it merely regulates it. The health insurance industry is what will create health insurance plans and Obamacare simply runs quality control to ensure that what Americans are being provided is acceptable. Obamacare also expands private coverage options through the use of mandates, taxes and subsidies in order to provide healthcare insurance to more people. One thing that Obamacare did create though is the Health Insurance Marketplace, which is where this rumor most likely began. The Health Insurance Marketplace is nothing more than a place where potential beneficiaries can look at all of the health insurance plans offered and compare prices and coverage before enrolling in the best plan. This is also how Obamacare can regulate health insurance policies by traditional healthcare companies and private health insurance companies.
Myth 3: All Beneficiaries Must Use the Health Insurance Marketplace
While it is certainly easier to use the Health Insurance Marketplace, it is not required for beneficiaries to use the marketplace to find health insurance. In fact, any beneficiaries who are happy with their current plans may be able to renew the plans so long as they follow ACA guidelines. For example, anyone with Medicare, CHIP or Medicaid will be able to continue on that insurance plan. The marketplace is just offered to Americans who are not insured.
Myth 4: Having Obamacare Means Paying Higher Premiums
This is by far the most common myth about Obamacare. It is true that insurance premiums did rise when Obamacare was enacted, but it wasn’t entirely due to the Affordable Care Act – there were other factors influencing prices. Over the years, the rate of income has increased, which is directly proportional to insurance premium prices. Due to this relationship, it was natural that premiums would increase, but because of how much income has increased over the years it is now becoming a struggle to keep premiums from climbing any higher. What many people fail to realize is that Obamacare was created in part to stop rising premiums based on characteristics such as gender, health status and pre-existing factors. Obamacare has put many different acts forward in an attempt to provide quality health care for all and to keep premiums as low as possible. Many of the higher rates people have witnessed are due to insurance companies raising rates on the cost to maintain plans that pre-date Obamacare and have been grandfathered into the system.