In lieu of the new presidency, there is a prominent amount of attention on the former president, Barack Obama’s “Affordable Care Act” otherwise known as “Obamacare”. Before you take your stance on whether Obamacare should be repealed or not, it is important to deeply understand what the act entails.

The Affordable Care Act was implemented in 2010, and in short, ABC defines it as “– a law enacted to ensure that all Americans have access to affordable health insurance. It does this by offering consumers discounts (known as tax credits) on government-sponsored health insurance plans, and by expanding the Medicaid assistance program to include more people who don’t have it in their budgets to pay for health care.” Under Obamacare, health insurers can no longer deny you coverage or increase prices on treatments, benefits, and more.

Personally, health insurance is a confusing topic for me and if it is for you as well, you’re not alone. Herbert A. Simon University Professor of Economics and Psychology in Carnegie Mellon University’s Dietrich College of Humanities and Social Sciences: George Lowenstein published his health care study in the Journal of Health Economics. The study explicitly surveyed Americans between the age of 25 and 45 who have health insurance and are primary decision makers for themselves or their families.

Lowenstein tested if the participants knew basic healthcare concepts such as deductibles, co-pay, and out-of-pocket maximum. The research revealed an alarming 86% of participants could not wrap their head around the fundamental concepts of healthcare.

So what does this mean for us?

Well think about it in this context, how can we have a stance on this paramount topic in politics if we don’t even understand it.

Loewenstein commented on this issue saying if “Insurance plans incorporate all sorts of incentives designed to encourage customers to make specific types of decisions. What is the likelihood that they are going to respond to these incentives if they can’t understand the most basic elements of plan design?”


Ask yourself this question: Am I well-informed about our health care system enough to take a political side over the issue?


Healthcare is a fundamental aspect in all of our lives and when it comes to this matter ignorance is not bliss. Check out our next post in order to learn basic information regarding health care and health insurance.


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