The Affordable Care Act (ACA) is the comprehensive federal health care reform law enacted by the U.S. Congress in 2010. It is also sometimes referred to by its full name, the Patient Protection and Affordable Care Act (PPACA), or – because it was enacted during Barack Obama’s first term as president – ObamaCare (or Obamacare).
The primary objectives of the ACA are:
- To make affordable health insurance available to more people. The law provides subsidies (in the form of premium tax credits) that reduce costs for consumers; available subsidies vary based on household income in relation to the Federal Poverty Level (FPL).
- Expand the federal Medicaid program to include all adults with income below 138% of the FPL. (According to the Kaiser Family Foundation, as of July 27, 2023, 40 states and one jurisdiction (DC) have adopted expansion; 10 states have not.)
- Support innovative medical care delivery methods designed to reduce health care costs generally.