Obamacare provides free coverage through Medicaid expansion and cost assistance on the marketplace; however, some individuals still pay full price out-of-pocket unless they can qualify for plans with zero premiums and low deductibles.
Health insurance coverage
The Affordable Care Act, commonly referred to as Obamacare, seeks to make health coverage accessible and affordable for Americans while protecting them from insurance company tactics that increase costs or limit care. Enacted into law in 2010 by the 111th United States Congress and signed by President Barack Obama.
It provides many consumer protections, and makes it illegal for insurers to deny you coverage based on preexisting conditions. Furthermore, all health plans must provide certain free benefits such as preventive care services; and young adults can stay on their parents’ insurance plan until age 26.
Individuals eligible for Obamacare may qualify for premium tax credits to help cover the costs of their coverage plan. These subsidies are paid for through new taxes on medical device sales as well as savings generated from Medicare payments to high-income seniors. Furthermore, this law expands Medicaid coverage so as to cover more low-income individuals.
Subsidies
Under the Affordable Care Act (ACA), most enrollees pay less than 10% of their income towards health insurance premiums; some may even qualify for subsidies that reduce or even completely waive them. This makes health coverage more accessible to middle-class families while containing healthcare costs and providing preventive services more efficiently.
Regardless of whether or not you receive subsidies, it is vital that if your income changes during the year that you notify the exchange immediately so as to receive an appropriate subsidy amount – otherwise you could end up getting too large of or too small a subsidy amount and have to make payments back at tax time.
As part of recent legislation, premium subsidies provided under the ACA will now remain in place through 2025; however, if it’s repealed then these subsidies would cease and leave many people unable to afford marketplace coverage. It should be noted that many workplace plans qualify as affordable without needing subsidies, thus having little effect on most employees who receive health coverage through their employers.
Enrollment period
Before Obamacare or the Patient Protection and Affordable Care Act took effect, many people with preexisting conditions had difficulty getting health insurance due to preclusion clauses in policies; as a result, they often spent money on medical bills or went without coverage altogether. With Obamacare taking effect, individuals can now be covered for life with less expensive prescription drug costs and lifetime coverage can now be provided for life.
You may only be eligible to enroll in a marketplace plan during an open enrollment period, which typically runs between November 1 and January 15 in most states. However, some states that operate their own exchanges have the ability to extend this enrollment period for certain individuals.
Life changing events such as having a baby, marriage or job loss could trigger a special enrollment period for you and/or your family plan members. A special enrollment period could also apply if someone dies or if you move to a different state.
Uninsured people
Since the Affordable Care Act (ACA), also known as Obamacare, was implemented, the number of uninsured Americans has steadily been decreasing. Under Obamacare, private health coverage can be purchased online marketplaces with government subsidies to cover premium costs; additionally it expanded Medicaid to cover more low-income Americans.
The Affordable Care Act prohibits insurers from refusing coverage or charging more for preexisting conditions and requires all plans to include 10 essential benefits. Furthermore, its individual mandate – which required everyone to obtain health coverage or face penalties – was declared constitutional by the Supreme Court.
However, many working-age adults remain uninsured despite having incomes too high to qualify for marketplace plans with subsidies. Uninsured people tend to struggle paying medical bills and may become debtors owing third-party collections agencies; this risk increases for non-citizens as they tend to work in lower wage jobs without health benefits.
