Affordable Care Act

AAA

DEFINITION of 'Affordable Care Act'

A federal statute signed into law in March 2010 as a part of the healthcare reform agenda of the Obama administration. Signed under the title of The Patient Protection and Affordable Care Act, the law included multiple provisions that would take effect over a matter of years, including the expansion of Medicaid eligibility, the establishment of health insurance exchanges and prohibiting health insurers from denying coverage due to pre-existing conditions.

INVESTOPEDIA EXPLAINS 'Affordable Care Act'

At the time of its enactment, the Congressional Budget Office estimated that the new law would reduce the federal deficit by nearly $145 billion in the first 10 years and between .25% and .5% of GDP thereafter. The costs associated with the new amendments are offset by numerous taxes, such as increased taxes on items and services such as eye glasses, hearing aids and indoor tanning.

RELATED TERMS
  1. Medicare Supplementary Medical ...

    Health insurance sold by private insurance companies meant to ...
  2. Social Security

    A United States federal program of social insurance and benefits ...
  3. Social Security Administration ...

    A U.S. government agency created in 1935 by President Franklin ...
  4. Health Reimbursement Account - ...

    Employer-funded plans that reimburse employees for incurred medical ...
  5. Health Insurance Portability And ...

    An act created by the U.S Congress in 1996 that amends both the ...
  6. Medicare Wages

    An employee's earnings that are subject to a U.S. payroll tax ...
Related Articles
  1. Fighting The High Costs Of Healthcare
    Home & Auto

    Fighting The High Costs Of Healthcare

  2. Buying Private Health Insurance
    Insurance

    Buying Private Health Insurance

  3. Services That Health Insurers Often ...
    Insurance

    Services That Health Insurers Often ...

  4. What Does Medicare Cover?
    Insurance

    What Does Medicare Cover?

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center