Question

The Affordable Health Care Act of 2010 gives insurance companies the right to _____.

terminate coverage for certain illnesses

refuse coverage because of a pre-existing condition

set annual payout limits

limit the maximum lifetime payout

Answer 1

The Affordable Health Care Act of 2010, also known as Obamacare, gives insurance companies the right to refuse coverage based on pre-existing conditions, set annual payout limits, and limit the maximum lifetime payout. However, the ACA implemented regulations to protect individuals by prohibiting denial of coverage for pre-existing conditions and eliminating or restricting annual and lifetime payout limits.

Step-by-step explanation:

The Affordable Health Care Act of 2010, also known as the Patient Protection and Affordable Care Act or Obamacare, gives insurance companies the right to:

• Refuse coverage because of a pre-existing condition: Under the ACA, insurance companies are prohibited from denying coverage to individuals with pre-existing medical conditions. This means that individuals cannot be denied health insurance based on previous illnesses or chronic diseases.
• Limit the maximum lifetime payout: Prior to the ACA, insurance companies could impose a limit on the maximum amount they would pay for an individual's healthcare over their lifetime. The ACA removed these limits, ensuring that individuals are not left without coverage when they need it most.
• Set annual payout limits: The ACA also addressed annual payout limits, which were caps on the amount an insurance company would pay for an individual's healthcare in a given year. The act introduced regulations to eliminate or restrict these annual payout limits, providing individuals with more comprehensive coverage.

Answer 2

The Affordable Health Care Act of 2010 gives insurance companies the right to refuse coverage because of a pre-existing condition (second option).

Step-by-step explanation:

Affordable Health Care Act is a legal statute related to the accessibility of medical services and health insurance, enacted by the United States Congress and signed in 2010 by then President, Barack Obama. This law became fully effective in 2014.

One of the powers granted to insurance companies, under the legal statute, is not to give coverage to pre-existing chronic medical conditions from before the law was enacted.

An example of this is that if a person was diabetic before 2010, any complications arising from their chronic condition, such as nephropathy or diabetic retinopathy, will not be covered.

The other options are not part of the legal estate that derives from Affordable Health Care Act.