Patient Protection and Affordable Care Act
Patient Protection and Affordable Care Act (PPACA)
USA
A federal statute signed into law in March 2010 which, as amended by the Health Care and Education Reconciliation Act of 2010, enacts major reforms to the US health care system. Among other things, PPACA:
• Provides for tax credits for small employers that purchase insurance for their employees.
• Mandates that individuals obtain minimum essential health coverage and penalizes those who do not purchase coverage.
• Requires employers to provide minimum essential health coverage to employees or pay a penalty.
• Requires states to create health benefit exchanges through which individuals and small employers can purchase health insurance.
• Implements insurance market reforms, such as prohibiting:
o lifetime and annual limits on essential benefits;
o pre-existing condition exclusions on enrollees under age 19;
o discrimination based on pre-existing conditions or other health status; and
o waiting periods longer than 90 days.
For more information on the reforms enacted as part of PPACA, see the Health Care Reform Toolkit (www.practicallaw.com/7-502-3192).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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