A hot topic in the U.S. and the world at large right now is fighting the high cost of healthcare. In the United States, a polarizing issue is the Affordable Care Act, better known as "Obamacare." There are many people up in arms about the future of healthcare in America. There are many components of the Affordable Care Act that are widely misunderstood by many citizens. Here's a look at five things you need to know about Obamacare and why it's not as scary as you think.

It Doesn't Replace Private Insurance
Contrary to what many citizens may think, Obamacare is not replacing private health insurance, Medicaid or Medicare. The Affordable Care Act works hand in hand with private insurance by regulating insurance practices, giving citizens affordable options and making sure that every American citizen has access to affordable healthcare. Without private insurance, the Affordable Care Act would not work. There is no specific "government" plan; you are free to select whichever plan you desire.

Obamacare Regulates Insurance Company Practices
One of the restrictions that will be put into place includes enforcing a cap ceiling on what insurance companies can charge in terms of premiums. Other terms include the removal of pre-existing condition clauses, in which an insurance carrier refuses coverage due to an existing health condition. By regulating insurance company practices, the Affordable Care Act is helping to lower healthcare costs and help protect the financial well-being of American citizens.

Healthcare Exchange Provides More Options
The healthcare exchange that comes alongside the Affordable Care Act will provide a diverse selection of policies to choose from. Citizens can select from free or low-cost insurance coverage, or opt for a higher-priced plan from a private health insurer. Obamacare is not stripping citizens of their liberties, as many people believe, it is actually giving them more choices and protecting their wallets in the process.

Obamacare is Projected to Lower the Deficit, Not Raise It
A complaint many taxpayers have is that they believe the Affordable Care Act will increase the already-enormous deficit. The reality is much different than this belief, however. By the year 2022, the American people will have saved $84 billion as a result of Obamacare. The reason for the massive savings is due partially to the cap being placed on insurance carrier premiums, along with a number of other factors, including offering more low-cost options to cash-strapped Americans, as opposed to going without insurance.

In 10 Years, Obamacare Will Insure 30 Million More Citizens
In today's society, a big complaint from many consumers is that they cannot afford health insurance on their present salary. Obamacare puts an end to this complaint. By offering a variety of low-cost options, citizens who previously couldn't afford health insurance now have access to a variety of choices. It has been estimated that by the year 2022, more than 30 million additional citizens will be insured thanks to Obamacare.

The Bottom Line
There are many misconceptions surrounding the Affordable Care Act. The purpose of the act is to put regulations and restrictions on insurance companies so that Americans can better manage their healthcare costs. This is done in order to protect the American people, not hinder them or encroach on their liberties. The Affordable Care Act provides budget-friendly choices and keeps insurance companies from increasing premiums past a certain level, while also restricting other pre-existing condition clauses. By making health insurance more affordable, Obamacare aims to improve the quality of life of millions of Americans, while also protecting their financial well-being.

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