IntroductionThe Patient Protection and Affordable Care Act was signed into law in 2010. This document summarizes three provisions of the ACA and analyzes the financial implications that these provisions could have on the health sector and the American economy. . The three provisions are: expansion of public programs, tax changes related to health insurance or health reform financing, and changes to private insurance. Expansion of public programs. Under the Affordable Care Act, the “Expansion of Public Programs” provision exists to make changes to Medicaid and CHIP. The goal is to “expand Medicaid to all persons under age 65 not eligible for Medicare (children, pregnant women, parents, and adults without dependent children)” (Summary) who meet a certain income requirement. With this provision, newly eligible adults will receive a benefit package that is equivalent to essential health benefits. Because of the Supreme Court's decision, it is optional for states to decide whether to expand Medicaid. To finance this expansion, states would receive 100% federal funding over the 2014-2016 period. This amount would decline by up to 90 percent by 2020. Additionally, Medicaid fee-for-service payments will increase by up to 100 percent of Medicare payment rates in 2013 and 2014. With this provision, states are required to maintain the income eligibility levels as they relate to children's health. Insurance Program (CHIP) through 2019. Beginning in 2015, states will receive a 23 percentage point increase in the CHIP matching rate. Those who are unable to enroll in CHIP due to enrollment caps are eligible for tax credits. This provision will have a significant positive financial impact on the healthcare industry and the U.S. economy as a whole. According to Glied & Ma (2013), "coverage expansion (...... middle of paper ...... are laws, in general, it will improve the health sector. ReferencesGlied, S. , & Ma, S (December 1, 2013). How States Can Gain or Lose Federal Funds by Participating in or Opting out of Medicaid Expansion. Retrieved May 1, 2014, from http://www.commonwealthfund.org/~. /media/Files. /Publications/Issue%20Brief/2013/Dec /1718_Glied_how_states_stand_gain_lose_Medicaid_expansion_ib_v2.pdfHartsfield, T. (nd). .investors.com/. ibd-editorials-perspective/050514-699645-obamacare-taxes-are-a-cascade-of-new-costs-on-american-taxpayers.htmKaufman, N. (2014, April 8). Health Care – Making Progress. Retrieved May 5, 2014 from http://www.huffingtonpost.com/nancy-kaufman/health-care-making-progre_b_5106807.html..