In this video, I explain the Affordable Care Act (ACA) as covered on the CPA exam.
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The Affordable Care Act (ACA), also known as Obamacare, was enacted with the primary goal of expanding access to healthcare coverage in the United States. The ACA introduced several mechanisms to achieve this:

EmployerProvided Plans: Employers, especially larger ones, are encouraged under the ACA to provide health insurance to their employees. This often comes as part of the employee benefits package. The ACA includes provisions that mandate certain employers to offer health insurance and imposes penalties on those who do not comply.

Health Insurance Marketplaces: These are platforms where individuals can shop for and enroll in health insurance plans. The ACA established these marketplaces to make it easier for people without employersponsored health insurance to find coverage. Importantly, these marketplaces offer plans that meet certain standards set by the ACA and often provide financial assistance (subsidies) to individuals based on their income level, making insurance more affordable.

GovernmentSponsored Programs: The ACA expanded eligibility for governmentsponsored programs like Medicaid and maintained existing programs like Medicare. Medicaid expansion allowed states to increase the income threshold for Medicaid eligibility, thus enabling more lowincome individuals and families to get health coverage. Programs for veterans and other specific groups are also considered part of this coverage network.

Direct Purchase from Insurance Companies: Individuals also have the option to buy health insurance directly from insurance companies. While this is often more expensive than other options, the ACA introduced regulations that require these plans to meet certain standards, such as covering preexisting conditions and providing a set of essential health benefits.

Overall, the ACA aimed to reduce the number of uninsured Americans by providing various options for obtaining affordable and comprehensive health insurance, whether through employers, marketplaces, government programs, or direct purchases. This expansion of coverage was also accompanied by regulatory changes that aimed to improve the quality of health insurance plans and to protect consumers from certain insurance company practices deemed unfair or detrimental to patient care.




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