With the implementation of the Affordable Care Act, some progress is being made in health insurance reform. The new law requires insurance coverage for pre-existing conditions and the end of lifetime/yearly limits (i.e. insurance companies can’t set a dollar limit on what they spend on essential health benefits for your care during the entire time you are enrolled in that plan).
However, insurance companies can still set a yearly limit of $2 million on what they spend for your coverage for plan years or policy years starting before January 1, 2014.
Furthermore, insurance companies can still put a yearly dollar limit and lifetime dollar limit on spending for health care services that are not considered essential health benefits. The Affordable Care Act also allows for savings on monthly premiums and out-of-pocket costs. This should reduce the number of Americans that are uninsured, which has already dropped from 18% in 2013 to 15.9% in 2014.
The uninsured rate among 26- to 34-year olds and 35- to 64-year olds continues to decline – now at 26.6% and 16.3%, respectively (Gallup surveys).
Medicaid expansion is another benefit of the Affordable Care Act, which should help reduce government health care costs overall and the health coverage gap that currently exists. However, Tennessee is one of the few states that voted against Medicaid expansion.