Arizona Health Insurance Practice Exam

Beginning January 1, 2014, the restricted annual limit for plans under the Affordable Care Act will be?

1. No limit

2. $1 million

3. $2 million

4. $5 million

The correct answer is: No limit

The Affordable Care Act (ACA) established significant changes in the health insurance landscape, particularly regarding essential health benefits and annual limits on coverage. Beginning January 1, 2014, the ACA mandated that health plans could no longer impose annual or lifetime limits on essential health benefits. This means that insurers are required to cover necessary medical services without a specified cap on the amount they would pay for coverage over the course of a year or a lifetime. This requirement aims to protect consumers from being denied necessary medical care once they reach a limit on their insurance coverage, thereby ensuring better health security for individuals enrolled in health plans. Prior to the ACA, it was common for some plans to have substantial annual limits, which could lead to significant financial hardship for policyholders facing high medical costs. In contrast, the other options represent previous common practices where health plans often had significant annual maximum limits, which are no longer permissible under the ACA.