The Basics of Obamacare

            President Obama's plan to insure healthcare for all marks a positive step for the well – being of our country's citizens. Still, the Patient Protection and Affordable Care Act (PPACA) also known as ObamaCare has been one of the most controversial topics of our time. In order to understand why this is such a controversial topic we must understand exactly what this act means to the people. The Patient Protection and Affordable Care Act (PPACA) states that with limited exceptions, every resident of the United States must have health insurance that must meets certain basic requirements. Beginning in 2014, individuals who do not acquire health insurance will be subject to a fine. This fine will rise over time, reaching $895 per person or 2.5 percent of income, whichever is greater, by 2018. Beginning in 2014, each state is to establish an Affordable Insurance Exchange. Separate exchanges are to be established for individuals and small businesses with fewer than 50 employees. The intention is that private insurance companies will compete by offering policies on the exchanges to individuals and small businesses. Low – income individuals and small businesses with 25 employees or less will be eligible for tax credit to offset the cost of buying health insurance. For the employers, beginning in 2014, every firm with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan. Firms with more than 50 employees must offer health insurance or pay of $3,000 to the federal government for every employee who receives a tax credit from the government for obtaining health insurance through their state's health exchange. The government plans to regulate insurance companies by requiring all insurance to participate in a high – risk pool that will insure individuals with pre – existing medical conditions and were unable to get insured.