Affordable Care Act (ACA)
Definition
The ACA, also known as Obamacare, is a comprehensive healthcare reform law enacted in March 2010. It was designed to extend health insurance coverage to millions of uninsured Americans.
Analogy
Think of the ACA like a safety net at a trapeze show. Before the ACA, if you didn't have health insurance and fell ill (like falling off the trapeze), you'd hit the ground hard with medical bills. But with the ACA in place, that safety net catches you, providing protection from catastrophic costs.
Related terms
Individual Mandate: This is a requirement by law for certain persons to purchase or otherwise obtain good quality healthcare insurance.
Medicaid Expansion: A key component of the ACA that allows states to provide Medicaid coverage for all low-income adults.
Pre-existing Conditions: These are medical conditions that existed before someone's health benefits went into effect. Under the ACA, insurers can't refuse coverage or charge more due to pre-existing conditions.
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