ACA (Affordable Care Act)

What is ACA (Affordable Care Act)?

HR professionals frequently refer to the Patient Protection and Affordable Care Act as the ACA (Affordable Care Act). The Affordable Care Act (ACA), popularly known as Obamacare, was passed by the 111th Congress and became law in March 2010.

Why ACA (Affordable Care Act) Matters

The Affordable Care Act (ACA), which aims to provide healthcare coverage to more Americans, changed how benefits are administered through new rules, sanctions, and fines.

These consist of the following:

  • New requirements for health plans to be considered ACA-compliant insurance

  • A personal mandate obliging all Americans to provide proof of health insurance or pay a tax penalty

  • New criteria for establishing who is regarded as a full-time employee for the purposes of specific mandates

  • The requirement that companies with at least 50 employees provide health insurance

  • The development of marketplaces for health insurance

  • Subsidies on premiums and cost-sharing for Americans with lower incomes

  • Medicaid program expansion in numerous US states

Issues with ACA compliance make managing medical coverage more difficult. For employees to make the best decision for their health and financial circumstances during the open enrollment, HR professionals need to explain how the ACA affects their benefit options.

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