Many companies and organizations have been asking the same question: When does the Affordable Healthcare Act, formerly called the Patient Protection and Affordable Care Act (PPACA) and more commonly known as Obamacare, become effective?
The federal law, signed by President Obama in March 2010, works to provide affordable healthcare to individuals who cannot afford adequate medical insurance and increase the overall costs of healthcare. Since changes are continually being made to the healthcare act, many companies have become confused as to when various parts of the act become effective.
The following provisions have already become effective:
- June 2010: Early retirees (between the ages of 55 and 65) became eligible for expanded medical insurance benefits.
- September 2010: Free preventative care, such as colonoscopies and mammograms.
- January 2011: In order to lower healthcare premiums, the law requires insurance companies to spend 85% of premium dollars on improving healthcare services.
- January 2011: The act is improving the healthcare quality and efficiency to reduce the rate of Medicare and Medicaid.
- January 2012: Providing incentives for medical professionals to join Accountable Care Organizations in order to encourage integrated healthcare systems.
The following dates signify the provisions that are still to become effective:
- October 2013: Provides new funding for the Children’s Health Insurance Program (CHIP)
- January 2014: Remove annual limits on group insurance coverage plans.
- January 2014: Prohibit insurance companies from discriminating members based on gender and pre-existing conditions.
- January 2014: Affordable Insurance Exchanges become available.