Final answer:
Kelly's conditionally renewable health insurance policy can be non-renewed by the insurance company for non-payment of premiums. The ACA has aimed to mitigate challenges in the health insurance market, such as high healthcare costs and adverse selection, by expanding coverage and regulations.
Step-by-step explanation:
Kelly purchases a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to refuse renewal of the policy for non-payment of premiums.
The landscape of health insurance has been notably affected by the ever-increasing healthcare costs. These costs have contributed to the high number of people who are either uninsured or underinsured. While many obtain health insurance through their employers, not all companies offer it, especially if the workforce is largely part-time or if the business is small. The introduction of the Patient Protection and Affordable Care Act (ACA), also known as Obamacare, in 2010 aimed to address several challenges in the healthcare system, such as extending Medicaid eligibility, prohibiting denial of coverage due to pre-existing conditions, and requiring everyone to have insurance coverage or pay a penalty.
Despite these measures, people still face challenges in obtaining insurance, often due to the high costs associated with healthcare and insurance premiums. These issues have had a significant impact on the number of people without adequate health coverage. The issue of adverse selection, where only high-risk individuals purchase insurance, resulting in higher costs, is also a concern in the health insurance market. The ACA's mandates seek to mitigate these problems by expanding coverage and preventing insurance providers from denying coverage based on pre-existing conditions.