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The Affordable Care Act is a federal statute signed into law in 2010 that introduces a sweeping overhaul of the nation’s healthcare system. The act grants the federal government significant regulatory powers and price controls over U.S. medical service providers and insurance companies. The Act’s landmark provisions included an insurance mandate which prohibited insurers from denying coverage to individuals due to preexisting conditions and insurance requirements for individual children who did not have coverage via their families. The Act also required states to set up and maintain health insurance exchanges where individuals, families and small businesses can purchase private insurance plans. Individuals who remained uninsured would be subject to a fine tax with their annual tax returns. The fine clause was overturned in the Tax Cuts and Jobs Act of 2017 eliminated the fine for violating the individual mandate.
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