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Current Affairs

Affordable Care Act

Date: 21 June 2021 Tags: Miscellaneous

Issue

The Supreme Court of USA has dismissed a petition that challenged Obama-era Affordable Care Act (ACA).

 

Background

The act was a major step towards affordable healthcare to poor families and covered millions of Americans, especially minorities.

 

Details

  • The administration of Texas State had filed a petition in the Supreme Court and was also endorsed by former President Trump.

  • President Obama had initiated the Affordable Care Act (ACA) in 2010 to make everyone to obtain minimum health insurance coverage.

  • The act imposed a certain penalty on individuals who had failed to get the minimum coverage. Later, this penalty was nullified to $0.

  • The move made states like Texas to approach Supreme Court. They argued that the nullification of penalty made the Affordable Care Act (ACA) unconstitutional and invalid.

 

Goals of the act

  • Making health insurance affordable for majority of people.

  • Covering all adults below 138 percent of poverty line by expanding Medicaid program.

  • Reducing cost of healthcare by lowering medical delivery methods through innovation.

 

Supreme Court response

  • The court said that the concerns raised by the plaintiffs were not worth noting. It declined to further go ahead with checking the constitutionality.

  • This is not the first time such pleas were filed in the court. Previously in 2012 and 2015, the court had dismissed similar pleas.