Obamacare makes it simpler to obtain health insurance. It also provides relief to those with pre-existing conditions and provides free prevention benefits.
Additionally, the law permits most young adults to remain on their parents’ health plans until age 26.
The cost of health insurance varies based on your income, family size and plan selection. Depending on your circumstances, you may qualify for a premium tax credit or special subsidies that reduce your monthly premium payments.
Cost
The cost of Obamacare depends on several factors, such as how many people are covered on your plan, which health insurance company you select, your location and metal tier status. It also depends on household income and if additional subsidies are available.
The law reduces costs based on income and offers tax credits for people who meet at least 400% of the federal poverty line. Plans can be affordable at or below $100 a month for most Americans who qualify.
Under the law, companies were required to offer or pay penalties for offering insurance to employees. Larger firms (those with 50 or more personnel) must offer coverage or face a $2,000 per employee penalty per full-time employee after the first 30.
Subsidies
Subsidies can help lower your monthly premium costs, making health insurance more accessible. These tax credits are calculated based on an estimate of your income for the coverage year.
When your income changes during the year, certain limits apply on how much assistance you may receive. More income may reduce your subsidy amount while less income could increase it.
During open enrollment and special enrollment periods on the exchange, people can sign up for subsidized plans at reduced cost. However, these subsidies are only available to exchange enrollees who earn an ACA-specific MAGI (adjusted gross income) that does not exceed 400% of the federal poverty level.
In an effort to alleviate this “family glitch,” the government allows some families to purchase subsidized plans for their dependents through exchange. This temporary fix will be extended until 2023.
Taxes
The Affordable Care Act includes a variety of new taxes, one of which targets families earning less than $250,000. This tax will be added to existing federal levies like income tax and Social Security payments and is projected to generate $6 billion in its first year according to estimates by the Congressional Budget Office.
The Individual Mandate tax, also known as the Individual Mandate, requires Americans who can afford it to purchase health insurance or receive an exemption. Starting in 2019, this fee was reduced from $0 at the federal level.
Another tax included in the Affordable Care Act is the Medical Loss Ratio (MLR). This requires health insurance companies to reimburse consumers for any out-of-pocket medical care expenses they incur. Ultimately, this could save some Americans money on their premiums over time.
Coverage
In 2010, President Obama signed the Affordable Care Act (ACA), otherwise known as Obamacare, into law with a goal of making health insurance more affordable and accessible. Through this initiative, millions of Americans have gained access to coverage and medical care for the first time.
Under the law, health plans must cover certain essential benefits. These include maternity, mental health and preventive care.
Insurers must also provide coverage for prescription drugs and lab services, hospitalization, and emergency medical care. This ensures people access quality healthcare when it’s most needed.
Another essential requirement of the ACA is that plans cannot deny or charge you more based on a preexisting condition. Millions of Americans with private health coverage now enjoy more comprehensive benefits as a result of this law.
To help the millions of newly insured take advantage of their benefits and access care, the Affordable Care Act required plans to provide clear information about what is covered. RAND researchers collaborated with Centers for Medicare and Medicaid on a “Coverage to Care” roadmap that assists newly insureds in understanding their coverage options and selecting a doctor.
