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 these provisions could have on the healthcare industry and the the US 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 there is an “Expansion of Public Programs” provision to make changes to Medicaid and CHIP. The goal is to “Expand Medicaid to all Medicare-ineligible individuals under age 65 (children, pregnant women, parents, and adults without dependent children)” (Summary) who meet a certain income requirement. Eligible new adults, through this provision, will receive a benefits package that will be equivalent to essential health benefits. Because of the Supreme Court ruling, it is optional for states to decide to expand Medicaid. To fund this expansion, states would receive 100 percent federal funding from 2014-2016. This amount will drop to 90 percent by 2020. Additionally, Medicaid fee-for-service payments will increase to 100 percent of Medicare payment rates in 2013 and 2014. With this provision, states are required to maintain eligibility levels of income regarding children's health. Insurance Program (CHIP) through 2019. Starting in 2015, there will be a 23 percentage point increase that states will receive for the CHIP matching rate. Those who cannot enroll in CHIP due to enrollment limitations may receive 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), “the expansion of coverage (...... half of the document ...... are Act, will generally improve the healthcare sector. References Glied, S., & Ma, S (2013, December 1). How States Can Gain or Lose Federal Funds by Participating in or Not Participating in 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. (n.d.) Retrieved May 5, 2014, from http://news.investors.com/. -cascade-of-new-costs-on-american-taxpayers.htmKaufman, N. (2014, Health Care - Making Progress The Huffington Post. Retrieved May 5, 2014, from http://www.huffingtonpost.com/nancy-kaufman /health-care-making-progre_b_5106807.html