You must be familiar with Obamacare by now. But have you wondered how it works or is it beneficial?

If you have, then this blog post is for you. Let’s just dive into it.

What is Obamacare?

Obamacare is an alternative term for the Patient Protection and Affordable Care Act (ACA) of 2010. As the name implies, it was signed into law by then-President Barack Obama to make healthcare more affordable.

Earlier, insurance companies could exclude people with pre-existing conditions. As a result, the people with the greatest health expenses sometimes had to go without insurance or settle for a policy that did not cover a pre-existing condition.

Obamacare has made it possible for people with pre-existing conditions to afford preventive care which in turn has reduced hospital visits and slowed down the rise of health care costs.

How does it work?

When you enroll in a health insurance plan, you typically pay a monthly premium to keep that plan. Obamacare includes subsidies to help lower-income individuals cover the cost of their plans. These subsidies, also known as tax credits, are still in effect in 2021.

Obamacare also provided payments to insurance companies to keep their deductibles low. Although the Trump administration has cut those payments, the law requires companies to continue to keep the deductibles low.

Let’s look at some Obamacare pros and cons


Apart from affordable healthcare and coverage for pre-existing conditions, Obamacare has the following pros.

  1. Affordable – As already mentioned, Obamacare has made health insurance very affordable allowing more people to get covered. Also, under the ACA, you can’t be denied coverage because of a pre-existing health problem.
  2. There’s no pre-set limit – Earlier insurance companies used to set certain limits on the amount of money they would spend on an individual consumer. Insurance companies can no longer maintain a pre-set dollar limit on the coverage they provide their customers.
  3. More screenings are covered – The ACA covers many screenings and preventive services that usually have low copays or deductibles.
  4. Prescription drugs cost less – Obamacare aims to make prescription drugs more affordable. The number of prescription and generic drugs covered by the ACA is growing every year.


  1. Higher premiums – Since insurance companies now provide a wider range of benefits and cover people with pre-existing conditions. This has caused premiums to rise for a lot of people who already had health insurance.
  2. Penalty – The main goal of Obamacare is to have everyone under an insurance plan all year round, If you’re uninsured and don’t obtain an exemption, you must pay a modest fine
  3. Higher Taxes – To help pay for the ACA, several new taxes were proposed. This has caused people with higher incomes to pay more tax.
  4. Signing up can be tricky – The ACA website has had a lot of technical problems when it was first launched. This made it difficult for people to enroll and led to delays and lower-than-expected signups.

Obamacare witnesses change almost every year. Just keep a lookout for all the changes and make a sound decision regarding your health insurance coverage.

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed