Obamacare Facts - How will obamacare affect me ?
The truth of how will obamacare affect me ?
The affordable healthcare act (healthcare reform, obamacare), is a
large an complex bill that will surely affect millions of Americans when
full implementation takes place in January 1st 2014. Although the bill is
ready to take place, there are still MAJOR confusions and many still
ask themselves "how will obamacare affect me?". Quite frankly there is
no simple answer to the question
"How will obamacare affect me"?
we have tried to dissect some major changes that
will take place that can help you answer the
question of "how will obamacare affect me?".
Below you can find Ten (10) ways in which the
affordable healthcare act can affect you :
1) …each US Citizen or legal resident MUST purchase
health insurance coverage.
so much information, but how will obamacare affect me?
January 2014 is when everyone will be required to purchase some kind
of healthcare coverage. Those individuals that chose to go without
insurance, will be assessed a fined of $95 a year or no more than 1% of
their income. The penalty for those who chose not purchase coverage
goes up to $695 or 2.5% of their income by the year 2016. The bill also
asses higher fines for families who chose to go without healthcare
coverage. Although this part of the bill was speculated to be
"unconstitutional" - forcing people to buy something they don't want.
In June of 2012, The Supreme Court upheld this part of the bill saying
that the government doesn't have the power to order people to buy
health insurance, but it DOES have the power to tax those without it.
Many have been skeptical about the low penalty being asses on the
first year (2014) because with an average individual health insurance
policy at around $450 a month, many will probably decide to just pay
the $95 a year and move on? At least during the first year, the $95.00
fine will seem manageable, but as the years go by, it is expected that
the fine will be much larger than the actual annual cost of in
2) … Medicaid expansion means mover people covered AND
subsidies for other Americans.
To make sure Americans with lower income can pay for decent health
care, the law includes the expansion of Medicaid (Medi-Cal in
California) and subsidies or government help for a large number of
Americans. Currently, those families with a household of 4 with an
income of about $23,000 each year or around $11,000 for a person
that is single - that is currently called 100% of the federal poverty level
or FPL are eligible for Medicaid. Obamacare, allows Medicaid to be
available to families earning about $30,000 a year or around $14,500
for a single person. This range in income represents the 133% of the
federal poverty level. The cost for a great part of the Medicaid
expansion was to be paid by the States and the bill allowed for the
federal government to pull funding to the states that didn't comply.
However, as part of the Supreme court ruling in June 2012, this part
was of the law was deemed unconstitutional for the federal
government to pull funding from the states. This means that each
individual state has the right to make the decision on expanding their
Moreover, there will be help by the government in the form in subsidy
for families with household of 4 making around 23k a year, and upto
92k a year. For those who are single, they can receive help in the form
of subsidy while making between 23K and 44K which is four hundred
percent of the FPL.
This means that right about 60% of all US citizens and legal residents will
be receiving some kind of subsidy in the form of tax credit or as partial
help to pay for their monthly premium.
3) Health plans will change how they cover the public. But how?
- Pre-existing conditions go out the window. People currently with pre-
existing conditions will be able to purchase insurance at standard
rates starting on October 1st for an effective date as soon as January
- Currently health plans are allowed to deny coverage for those sicker
individuals with pre-existing conditions. This means that those who
need it the most, cannot get it. And health plans area allowed to
terminate coverage for those who forgot to mention about a previous
condition during their enrollment process and later becomes a serious
- Life limits are also gone. In the past, health plans were allowed to
cap or stop coverage at the limit of 1 million dollars. That means that if
someone was dealing with a very costly sickness and their health care
cost reached the 1 million dollar threshold, their healthcare coverage
was terminated because the lifetime limit of 1 million dollars had been
met. Lifetime limits are now GONE!
- Preventive services are now covered at 0$ cost to consumers. What
does this mean? This means that your annual check-ups,
immunizations, mammograms, etc. will cost you 0$ (ZERO) dollars.
- Health plans are now forced to spend 80% to 85% of premium
collected on care cost and not administrative cost. When health plans
don't meet the percentage required, overpaid premiums will be
returned to consumers in the form of rebates
4) Get ready for a Health Insurance virtual super market called health
insurance "exchanges" created by the states and federal
Be prepared to purchase health insurance online. Currently, the
Federal government and different States are currently busy at creating
health insurance exchanges. Exchanges are like a massive online
health insurance mall.
The massive virtual mall will compare each health insurer in your area
so that you can easily select one based on your needs. If you qualify
for a subsidy, you will very likely purchase your product through the
exchange. If you are above the 400% threshold FPL,
you can continue to purchase your health care coverage through
your current channel (broker, health plan directly, etc.)
Although the exchanges are only a few months from going live, there
are still major regulations being decided at the State and Federal level
5) How are Employers impacted?
- For those employers who currently have more than 50 employees on
their payroll and don't provide health care coverage, will be fined an
amount that is still to be determined.
- On the other hand, for those employers with less than 50 employees,
and don't provide healthcare coverage, there will not be any fine or
- It is expected to record a spike on enrollments because those
employees who originally declined the coverage will now be required
to purchase health care coverage.
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