The Affordable Care Act

The Affordable Care Act (ACA), also known as Obamacare, reformed the health insurance system by requiring employers with 50 or more full-time employees to offer health plans. It established federal exchanges for individuals without employer coverage and mandated insurance companies to cover preexisting conditions. Employers face penalties if they fail to provide health plans, and employees may receive subsidies if they purchase insurance through exchanges. The ACA aims to lower premium costs through risk pooling and standardize healthcare practices.

What was one of the primary goals of the Affordable Care Act of 2014?

• To reduce the number of hospitals

• To eliminate employer-sponsored health plans

• To overhaul the health insurance system

• To increase taxes on healthcare providers

Why are employers encouraged to offer health plans to their employees under the ACA?

• To avoid hiring more staff

• To increase employee salaries

• To reduce working hours

• To pool risks and lower premium costs

What is the purpose of the federal and state exchanges established by the ACA?

• To allow employees to purchase insurance at group rates

• To increase the cost of health insurance

• To eliminate private insurance companies

• To provide free healthcare to all citizens

What requirement does the ACA impose on insurance companies regarding preexisting conditions?

• They cannot exclude individuals with preexisting conditions

• They must exclude individuals with preexisting conditions

• They can deny coverage for preexisting conditions

• They can charge extra for preexisting conditions

What defines a 'covered employer' under the ACA?

• An employer with 10 or more full-time employees

• An employer with 20 or more part-time employees

• An employer with 50 or more full-time employees

• An employer with 100 or more employees

What is the penalty for employers who do not offer health plans and have employees seeking subsidized insurance?

• A fine of $5,000 per employee

• A fine of $10,000 per employee

• No penalty is imposed

• A fine of $1,000 per employee

How is 'full-time' defined under the ACA for the purpose of employer coverage requirements?

• 30 hours a week

• 40 hours a week

• 25 hours a week

• 35 hours a week