The Patient Protection and Affordable Care Act (PPACA)

In March 2010, President Obama signed comprehensive health reform into law. The Affordable Care Act (ACA) commits $940 billion over 10 years to expand coverage to nearly 32 million of the 54 million uninsured Americans. This would be offset by $438 billion in new taxes and more than $500 billion in spending reductions, largely in the federal Medicare program.

Highlights

• Creates a new insurance marketplace, resulting in expanded access to coverage and the formation of state-based insurance exchanges
• Introduces sweeping insurance market reforms, including individual mandates and “pay or play” for employers
• Makes fundamental changes to Medicare, and expands the Medicaid program (run by states)
• Reforms Medicare Part D, closing prescription drug coverage gaps by 2020
• Funds new fraud and abuse measures, health IT, and prevention and wellness initiatives, including the promotion of prevention programs across the U.S. health care system
• Establishes the Patient-Centered Outcomes Research Institute to support the use of comparative effectiveness research for evaluating the effectiveness, risks, and benefits of medical treatments