Question

Which of the following best describes how premiums in the individual market for health insurance changed following the implementation of the Affordable Care Act?

1) Premiums decreased significantly
2) Premiums remained the same
3) Premiums increased slightly
4) Premiums increased significantly

Answer 1

The implementation of the Affordable Care Act resulted in a decline in the percentage of Americans without health insurance, but it also increased the federal debt. The cost of increased coverage was paid through various funding sources, including the individual mandate and changes to Medicare tax.

Step-by-step explanation:

The implementation of the Affordable Care Act, also known as Obamacare, resulted in a decline in the percentage of Americans without health insurance by almost 60%. However, the cost of this increased coverage was paid through various funding sources. The ACA imposed the individual mandate, requiring all individuals to purchase insurance or pay a penalty, which brought in a significant amount of money. Additionally, the ACA took $716 billion from Medicare spending and increased the Medicare tax on wealthy Americans. Despite these funding sources, the Congressional Budget Office estimates that the ACA will increase the federal debt by $137 billion over the next decade.