‘Obamacare’ —what’s all the fuss about?

Obamacare — aka the Affordable Care Act — lies at the heart of the row between Republicans and Democrats that led to the partial shutdown of the US Government. This is bad for business not only for the US but also, potentially, for countries across the world that depend heavily on US trade, such as Bermuda. 

But just what is Obamacare, why is it causing such a rift between the two political sides? force? 

Simon Jones, drawing from the BBC’s website, takes a look at the controversial new healthcare measures. 

What is ‘Obamacare’?

It revolves around The Patient Protection and Affordable Care Act, signed by President Obama in 2010. It’s the largest overhaul of the US healthcare system since the 1960s.

What does it aim to do?

To extend health insurance coverage to some of the estimated 15% of the US population who lack it. Those people receive no coverage from their employers and are not covered by US health programmes for the poor and the elderly. The law aims eventually to slow the growth of US healthcare spending, the highest in the world.

How does it do this?

The law will require all Americans to purchase health insurance, but will offer subsidies to make coverage more affordable and aims to reduce the cost of insurance by bringing younger, healthier people into the health insurance system.

Does it require anything else?

It also requires businesses with more than 50 full-time employees to offer health coverage, although this provision was delayed until 2015 to allow more time for compliance.

What is the net result of the legislation?

The law creates marketplaces — with websites akin to online travel and shopping sites — where individuals can comparison-shop for coverage.
In addition, the law bans insurance companies from denying health coverage to people with pre-existing health conditions, allows young people to remain on their parents’ plans until age 26, and expands eligibility for the government-run Medicaid health programme for the poor.

Why do Republicans oppose Obamacare so vehemently?

Republicans say the law imposes too many costs on business, with many describing it as a “job-killer”. They have also decried it as an unwarranted intrusion into the affairs of private businesses and individuals. But Democrats and some analysts say Republicans are motivated by politics — they want to undermine Obama’s signature domestic political achievement in order to weaken him.

Has Obamacare legislation been passed easily?

No — the Republican Party and other conservative think tanks have fought the law since Obama first proposed it in 2009 at the start of his first term in office. The law passed in 2010 after a bitter fight in Congress, with Republicans unanimously opposed. Then Republicans contested the law in the courts, a battle that ended in June 2012 when the US Supreme Court declared it constitutional. It was a central issue in the 2012 presidential election.

When does Obamacare take effect?

The complex law takes effect in several stages:

In 2010 insurers were banned from denying coverage to children with pre-existing conditions, adults under 26 were allowed to remain on their parents’ plans, and insurers were barred from cancelling coverage in some circumstances

In 2011 the law expanded access to preventative health services, and offered drug discounts for people in the Medicare programme for pensioners.

In 2012 provisions to encourage healthcare providers to lower costs took effect.

This month consumer health insurance marketplaces went online, with early snags and glitches reported. Next year people without health coverage from the government or their employers will be required to purchase it. 

What’s the link between Obamacare and the shutdown of the Government?

Earlier this month the Republican Party refused to pass a budget to fund the operations of the government unless Democrats would agree to delay the law or eliminate the funding for Obamacare. When Obama and the Democrats who control the Senate refused, the government shut down.