You might have heard about Obamacare.
However, there are chances that you might not know what it’s all about.
If you head over to the search engines and search for something like “What Is Obamacare,” you will come across blog posts or articles that are really confusing and SUPER-DUPER BORING to read.
And this ends now!
We have taken it upon ourselves to answer some of the most commonly asked questions related to Obamacare.
So, without wasting any time, let’s just get our party started.
What Is Obamacare?
A framework of federal rules regarding health-care coverage.
That’s what Obamacare is.
It’s often referred to as the “Affordable Care Act (ACA).”
Health insurance companies need to pay for a particular minimum amount of health care as well as services and remove the caps on certain care.
A law system has been put in place for guaranteed coverage as well as “Patent’s Bill Of Rights,” which is responsible for a certain kind of protection for the consumers.
Not all of the people in the USA were able to afford the costly health insurance policies for themselves and their families.
As we all know, it’s SUPER-DUPER important to have a health insurance policy.
And that’s where Obamacare comes in.
Obamacare’s sole focus is to decrease the prices of health care, thereby making it more affordable to the people who aren’t able to afford them.
Since 1935’s Social Security Act, Obamacare is the most comprehensive piece of legislation.
It’s named after President Barack Obama, who successfully managed to champ health care reform during his Presidential term from 2009 to 2017.
Why Is Health Care Coverage Required Under Obamacare?
Let’s take a look at why ACA requires you to have health insurance.
(Source: https://www.thebalance.com/obamacare-pros-and-cons-3306059)
- As people are not able to afford health insurance policies, they often end up in a hospital emergency room while they get injured or sick. Such kind of care is a lot costly than ordinary doctor visits. The hospital will have to provide you with care during emergencies, even if you aren’t able to pay for the care yourself. BUT!! Someone has to pay for it in the end. And that’s the reason the prices of the health care taxes and premiums go up.
- The more are the number of people the health insurance companies insure; the lower are the costs of the health insurance policies. And not all of them people can be considered as high-risk. The higher the number of people that the health insurance companies insure, the more risk is spread out. People who have some kind of serious health issues are more likely to buy health insurance policies than the people who don’t. BUT, if each one buys a health insurance policy without considering their health, the total amount that the insurer pays for the care of each and every person is likely to go down. That’s the reason these companies will keep the costs of the premiums lower.
What Are The Different Categories Of Health Insurance?
With Obamacare, the minimum coverage is set for health insurance policies.
Each and every plan should provide at least 60% of the overall average patient care’s estimated costs.
You can check out the various health insurance policy categories, usually going by the name of:
- Platinum
- Gold
- Silver
- Bronze
Why are they named differently?
That’s because each category represents different premiums as well as expected cost-sharing.
Quality of care and the amount of coverage aren’t affected by the different categories.
The highest premiums are tagged with Platinum.
BUT!
Platinum has the lowest on average out-of-the-pocket costs.
The lowest premiums are tagged with Bronze.
BUT!
The average out-of-the-pocket costs tagged with Bronze are really high.
A lot of different plans are available to buy, such as Qualified health plans, major medical plans, supplemental plans, catastrophic plans, as well as short-term gap coverage plans.
Catastrophic Plan
We can call it a safety net for people under the age of 30 who aren’t covered under a health plan already.
For example: A parent or employer.
Usually, this plan has a lower premium. BUT, you can expect the out-of-the-pocket average costs to be high.
It’s designed such that it covers you in case of a catastrophic situation.
By catastrophic situation, we mean a situation in which you have to pay thousands of dollars for your healthcare.
Short-Term Gap Coverage
(Source: https://www.insure.com/health-insurance/short-term.html)
If you didn’t have the opportunity to enroll for a complete health plan, that’s when you can be covered for a short time period with a short-term gap coverage plan. Read more on Short-term plans HERE
For example: Missing the Open Enrolment Period.
What’s The Impact Of Obamacare On Health Insurance & Costs?
Everyone!
Everyone in the US!
That’s the number of people that Obamacare rules have affected.
Insurance companies, individual consumers, medical providers.
You name it.
Previous when there wasn’t a thing called Obamacare, people found it real hard to find a health insurance company that would cover them.
After ACA was imposed, health insurance companies couldn’t turn you down or even charge you more in case you have a pre-existing condition.
The companies can’t even drop you in case you have a health insurance policy and turn sick.
In most of cases, you will get a lot of free preventive services like screenings and vaccinations.
For some, Obamacare hasn’t brought a major change with itself.
In case if your employer provides you with a health insurance policy, it usually covers everything that is required by Obamacare.
And that’s when you might think that Obamacare is just a small-act imposed in the USA.
Many people might have even seen the health insurance premiums changing since 2017.
There are a lot of factors that influence rates.
Some of them are:
- Increased coverage required by some companies to meet the standards of ACA.
- Age
- If you smoke
- Your plan category
- Where you live
AND!
The thing is your residential location can majorly impact your monthly premium size.
What Minimum Health Coverage Should A Plan Include?
Here are the health coverage services that should be essentially included under your health insurance plan:
- Emergency services
- Hospitalization
- Lab services
- Mental health and substance abuse services
- Outpatient services
- Pediatric services
- Pregnancy, maternity, and newborn care
- Prescription drugs
- Preventive care
- Rehabilitative care
Will Obamacare Affect My Taxes?
Well, there are chances that you might have heard something like, “Obamacare seriously affects your taxes.”
Well, let’s get into it.
In certain cases, there’s a chance that you might be eligible for the tax credits that can help you with out-of-the-pocket costs and premiums.
We often refer to these tax credits as “Subsidies.”
When you buy a health insurance plan for yourself, you can apply for them and they typically drastically reduce the out of pocket cost of these plans. More questions about how Obamacare can affect your taxes? Read more HERE
When Can I Sign Up For Obamacare?
The sign-up duration is limited to the annual Enrollment period. This year, that runs from November 1, 2019 to December 15, 2019.
However, in certain situations, you may even qualify for a Special Enrollment Period.
This means that you won’t have to wait for an open enrolment period.
Such situations include:
- Having a baby
- Adopting a child
- Moving to a new location
- Losing health insurance
- Change in your income
- Getting out of prison
- Getting married
- Part of federally recognized Native American tribe
Which Are The Top Qualifying Events That Have Triggered These Special Enrollment Periods?
According to June 2014’s analysis of eHealth Shoppers, the top qualifying events that majorly triggered these special enrolment periods are:
| Health Coverage Loss | 49% |
| Permanent Move | 11% |
| Divorce Or Marriage | 6% |
| Adoption Or Birth Of Child | 3% |
If you think that you are experiencing one of these situations, it’s time that you applied for the Special Enrolment period.
Where Can I Find Health Insurance Plan That Fits My Budget?
You need to carefully analyze the plans and choose which one is the perfect fit for you.
We have certain blog posts dedicated in our blog section itself that will help you analyze the different plans available in the marketplace.
Plus, we have often laid out an in-depth comparison of each of these plans to help you better understand everything.
OR!
You can simply reach out to Star Nsurance HERE, and we will be more than happy to help you out with all of your Health Insurance questions and even enroll you in an affordable Health Insurance plan for this year. You can also visit our office at 1430 E Fletcher Ave. Tampa, FL 33612 or call us at 813-563-5577. We look forward to helping you!