New Mexico Health and Life Insurance Practice Exam

The Affordable Care Act (ACA) is primarily a healthcare reform law designed to improve access to affordable health insurance for individuals and families in the United States. It was enacted in 2010 with the aim of expanding coverage, controlling healthcare costs, and enhancing the healthcare delivery system. One of the key features of the ACA is the establishment of health insurance marketplaces, where individuals can purchase health coverage often with the assistance of federal subsidies, which helps to make insurance more affordable.

Additionally, the ACA mandates that insurers cover essential health benefits, prohibits discrimination based on pre-existing conditions, and allows young adults to stay on their parents’ health insurance plans until they turn 26. By addressing these various aspects, the ACA seeks to reduce the number of uninsured individuals and improve overall health outcomes across the population.

Understanding this context clarifies why the response focusing on the ACA as a healthcare reform law aimed at improving access to affordable insurance is the most accurate representation of its purpose and functions.