What is the mandate in the ACA?

In the United States, the Affordable Care Act (ACA) signed in 2010 by President Barack Obama imposed a health insurance mandate which took effect in 2014. Under this law, insurance companies are restricted in their ability to alter insurance rates based on the current health of the individual buying the insurance.

Why is it important to regulate insurance companies to have a large pool of people paying premiums?

What is risk pooling? together allows the higher costs of the less healthy to be offset by the relatively lower costs of the healthy, either in a plan overall or within a premium rating category. In general, the larger the risk pool, the more predictable and stable the premiums can be.

Why law of large numbers is very important in insurance industry?

Insurance companies rely on the law of large numbers to help estimate the value and frequency of future claims they will pay to policyholders. When it works perfectly, insurance companies run a stable business, consumers pay a fair and accurate premium, and the entire financial system avoids serious disruption.

Why did they pass the Patient Bill of Rights?

Patient rights and the Affordable Care Act In 2010, a Patient Bill of Rights was created when the Affordable Care Act (ACA) was passed and made into a law. The bill was designed to give patient protections in dealing with health insurance companies.

Why has the Affordable Care Act ACA been controversial quizlet?

Why is the individual mandate controversial? Because opponents of the Affordable Care Act argue that forcing people to buy health insurance is an unconstitutional use of the Commerce Clause by Congress because health insurance is not related to interstate commerce.

Why do you think that the ACA has been such a highly debated policy?

The ACA has been highly controversial, despite the positive outcomes. Conservatives objected to the tax increases and higher insurance premiums needed to pay for Obamacare. Some people in the healthcare industry are critical of the additional workload and costs placed on medical providers.