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Affordable Care Act

What is the Affordable Care Act?

The Affordable Care Act (ACA) is a law that helps make health insurance plan choices available to people in the U.S. It is also called the Patient Protection and Affordable Care Act. The ACA has features that help make plans affordable.

The ACA used to require most people to have health insurance. Today, there is no federal penalty for not having coverage, but some states still have their own rules.

The Health Insurance Marketplace

The ACA created the Health Insurance Marketplace as a way to find and buy health insurance. This is a website where you can:

  • Compare health insurance plans in your area
  • See prices and benefits
  • Find out if you qualify for financial help

You must make at least $17,000 a year to buy a Marketplace plan with a tax credit that makes the plan cheaper. If you make less than $17,000 you may instead qualify for Medicaid. It depends on which state you live in.

Visit HealthCare.gov to shop for plans. Some states have their own Marketplace websites. These states include:

  • California
  • Colorado
  • Connecticut
  • District of Columbia (D.C.)
  • Georgia
  • Idaho
  • Illinois
  • Kentucky
  • Maine
  • Maryland
  • Massachusetts
  • Minnesota
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • Pennsylvania
  • Rhode Island
  • Vermont
  • Virginia
  • Washington

Enrollment period

There are certain times when you can sign up for coverage.

  • You can sign up during the open enrollment period. It usually starts toward the end of the year and lasts for a few months. During that time, you may sign up for coverage for the following year.
  • You can also sign up outside the enrollment period due to a life event, such as:
  • Loss of health insurance
  • Getting married or divorced
  • Having a baby or adopting a child
  • Death in the family
  • Moving to a new state

How to apply

There are 4 ways to apply for health insurance:

  • Online: Visit healthcare.gov
  • By phone: Call 1-800-318-2596
  • By mail: Send your application to Health Insurance Marketplace, Department of Health and Human Services, 465 Industrial Blvd., London, KY 40750-0001

Before applying, gather important documents such as:

  • Proof of income (pay stubs or tax returns)
  • Social Security numbers for family members
  • Current health insurance information (if you have it) 

Benefits of the ACA

Every health plan sold through the Marketplace must cover these basic benefits:

The ACA also says that health insurance companies selling plans through the Marketplace cannot:

  • Deny you coverage or charge more if you have a pre-existing health condition
  • Charge different amounts based on gender
  • Cancel your insurance when you get sick (as long as you pay your bill)
  • Put lifetime limits on essential health benefits  

Things to know about the ACA

Below are some more details about the ACA:

  • Some people may pay more: If you do not qualify for financial help (called subsidies), your monthly payments, deductibles, and other costs could be higher. Learn more about health insurance.
  • Fewer care providers in some areas: In some places, especially rural areas, there may be fewer health plans and fewer health care providers to choose from.
  • It can be confusing: Finding and signing up for a plan on the Marketplace can feel complicated for many people. 

What to do when you turn 26

Under the ACA, you can stay on your parents’ health insurance plan until you turn 26. After that, you need your own coverage. Here are your options:

  • Sign up through the Health Insurance Marketplace at healthcare.gov.
  • Check if your job offers health insurance and enroll in a plan.
  • Apply for Medicaid if you qualify based on income.
  • Look for other private health plans outside the Marketplace.

If you lose coverage when you turn 26, you qualify for a special enrollment period. It usually lasts 60 days after losing coverage. That means you can sign up for health insurance outside of the normal enrollment period. Gather proof of income and household information before applying. This will make the process easier. 

Key points about the Affordable Care Act

  • The ACA helps people in the U.S. get health insurance and makes coverage more affordable.
  • You can shop for plans through the Health Insurance Marketplace at HealthCare.gov.
  • Many families qualify for financial help (subsidies) based on income and household size.
  • Open enrollment happens once a year; special enrollment is available after major life events like losing coverage or having a baby.
  • Young adults can stay on their parents’ plan until age 26.
  • All Marketplace plans must cover essential health benefits, including emergency care, mental health, prescriptions, and preventive care.
  • Insurance companies cannot deny coverage for pre-existing conditions or charge different rates based on gender.
  • There is no federal penalty for not having insurance, but some states have their own rules. 

Find more information

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Reviewed: January 2026

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