Obamacare provisions now in effect

DAVE MOSIER/independent editor

With a government shutdown apparently imminent, the fact that at least some portions of the Affordable Care Act (ACA), also known as Obamacare, go into effect today could be lost on some people.

While the goal of the ACA is laudatory: providing affordable insurance for everyone, the devil is in the details, and there are widely divergent opinions on just what effect the ACA will have on American healthcare costs — and the U.S.’s healthcare system in general.

Under the traditional American healthcare system, those without jobs and many of those with low-paying jobs could not afford to purchase an individual health insurance plan. The ACA attempts to change that by making affordable health insurance available for low-income families, while also trying to end the practice of shifting the cost of providing healthcare to low-income individuals onto those people who do have private insurance.

While the ACA does offer a number of benefits, such as no longer allowing insurance companies to deny insurance to those with pre-existing conditions and allowing kids to be on their parents’ medical insurance until they’re 26, under a delay announced recently, businesses aren’t required to insurance workers this year.

The ACA features an online health-insurance marketplace where individuals, families and small businesses can learn about their insurance options, compare costs, benefits and other features, choose a plan, and enroll in coverage.

The exchange also provides information on programs that help people with low- to moderate income and resources pay for coverage.

While many people have called the ACA a “jobs killer,” that claim could be exaggerated. As of 2010, 97 percent of small businesses had fewer than 50 employees, according to the U.S. Census. That means the ACA’s employer mandate applies to only 3 percent of small businesses. In addition, 96 percent of companies with more than 50 workers already provide health insurance to their employees.

That doesn’t mean the ACA hasn’t had an impact on the economy, although economists say the primary effect has been for some businesses to delay hiring workers because of uncertainty over what effect the ACA will have on their healthcare costs.

In addition, more part-time labor is being used by companies that are trying to keep their costs down in the still-fragile economy.

Starting today, Americans can enroll in a healthcare plan under the ACA, with coverage likely starting January 1, 2014. The initial enrollment period runs through March 31, 2014, while later enrollments will be shorter.

Perhaps the most deserved criticism of the ACA is related to cost, since the legislation doesn’t include measures for holding costs down, allowing doctors, hospitals, insurance companies and other medical providers to continue raising healthcare costs in the future.

To find out more about the ACA, go to www.healthcare.gov or call toll-free 800.318.2596.