Learn More About the Pros and Cons of Obamacare

Obamacare, more formally known as the Patient Protection and Affordable Care Act, has been extremely controversial since its inception.  The Act has been picked apart by critics because it is so complex. Although we may hear bits and pieces of the debate around the Act, many of us do not know why it was actually enacted and why it has support from some and not from others.

The following is a list of some of the Pros and Cons of Obamacare:

Obamacare Pros

  1. Millions of uninsured Americans will get access to affordable healthcare coverage through the marketplace.

  2. Young adults can stay on their parents’ plan until the age of 26. This is incredibly helpful during the current recession for those recent graduates who are currently unemployed.

  3. The Act requires an expansion of employer sponsored healthcare coverage since it requires all businesses with 50 or more full-time employees to offer those employees insurance. Even smaller businesses (25 employees or less) can receive a substantial tax break if they decide to provide health insurance to their full time employees.

  4. No more coverage discrimination based on gender or health issues. Prior to Obamacare, insurance companies could deny coverage or charge shocking prices if you were born with a disability or were female and may need pregnancy care, for example. Now it is a level playing field for all and these same people will not be denied coverage due to something that is beyond their control.

  5. The overall quality of healthcare has increased while costs are being reduced. Middle-income Americans and employees will be able to use tax credits and subsidies to save up to 60% of the current cost of premiums.

Obamacare Cons

  1. The country is already in debt and adding more major government programs may make it worse if it goes over budget because taxpayers will end up paying the price for that.

  2. Some required coverages are against the moral values of employers. For example, the mandate to offer contraception at no cost to the patient goes against the moral code of some employers. Since our country promotes the free practice of religion, it is a concern of many that a healthcare law could force some Americans to act against their beliefs.

  3. Those who did not purchase health insurance coverage by March 2014 are to be taxed $95 per adult or 1% of their income, whichever is greater. In 2015, the penalty increases to 2% of your income or $325 per adult.

  4. Businesses with 50 or more employees that do not want to offer employer sponsored healthcare coverage, will face a high penalty of $2,000 per full-time employee, with a 30-employee deduction threshold. These penalties are not tax deductible.

  5. High income taxpayers are dealing with even more tax increases. These high income taxpayers include: singles with AGIs over $200,000 and married couples with AGIs over $250,000.

Although these pros and cons exist, it is clear that Obamacare has become the most major regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965, and it will continue to change the healthcare arena in years to come.