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Insurance & Risk Management Business Trends Analysis, Business and Industry Trends Analysis

In March 2010, President Obama signed the Patient Protection and Affordable Care Act (ACA). It was designed to force health insurance firms to provide more coverage, force more individuals and employers to participate in health care insurance and increase the number of people who qualify for Medicaid.

Provisions that took effect within the first six months of signing included coverage for adult children up to age 26 on their parents’ policies; making it unlawful for insurers to place lifetime caps on payouts or deny coverage should a policy holder become ill; and new policies being required to pay the full cost of selected preventive care and exempt that care from deductibles. Effective in 2010, small businesses with fewer than 25 employees and average annual wages of less than $50,000 became eligible for tax credits to cover up to 35% of staff insurance premiums.

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