The Affordable Care Act (ACA) offers significant protections that enable millions of Americans to avoid catastrophic medical bills, and prevents insurers from discriminating against people with preexisting conditions.
Dependent upon your household income, you could qualify for a premium subsidy to help offset the cost of an Obamacare health plan sold through each state’s insurance exchange.
What is Obamacare?
Obamacare refers to the Affordable Care Act (ACA). This landmark legislation established a Health Insurance Marketplace, provided subsidies based on income to reduce costs for some, expanded Medicaid eligibility and prohibited insurers from denying coverage or charging more based on preexisting conditions.
The Affordable Care Act (ACA) mandates that most Americans carry health insurance or face a penalty. The ACA makes acquiring private coverage easier through state and multistate exchanges as well as tax credits if your income falls under 400% of poverty level, adjusted annually to keep pace with inflation. Young adults can remain on parents’ plans until age 26 while some insurers cannot put lifetime monetary caps or cancel coverage for minor mistakes or mistakes that have already happened. Lastly, all plans must cover essential health services; millions have gained access to more affordable healthcare as a result.
Who is eligible for Obamacare?
The Affordable Care Act, more commonly known as Obamacare, gives those with limited income access to financial assistance for health insurance costs through premium subsidies and cost-sharing reductions. Subsidies may be available when purchasing coverage either on the Marketplace or directly from an insurer; as well as through other coverage options (such as short-term plans, standalone prescription drug plans and insurance supplements for vision, dental or critical illness coverage).
The Affordable Care Act allows people with incomes up to 400% of the poverty level to purchase advanced premium tax credits to offset high marketplace plan prices. It also encourages states to expand Medicaid programs for adults living below poverty; adults not qualifying are left in what’s known as “coverage gap,” having worked hard but lacking income sufficient for any market-based plan without assistance.
What is the difference between Obamacare and Medicaid?
The Affordable Care Act (Obamacare) mandates states to offer Medicaid coverage and subsidized private health insurance to individuals with household incomes below certain thresholds. Many of these benefits are administered by private companies contracted by state and federal governments – though ultimately all taxpayer funds come together into one pot of funds for these benefits.
Individuals eligible to receive Obamacare subsidies may apply both for an Affordable Care Act (ACA) plan and Medicaid at once through one application process. If an ACA exchange determines that an applicant meets both criteria, it will transfer their application directly to their state agency and start the enrollment process for Medicaid enrollment.
Medicaid plans are tailored specifically for low income earners, meaning enrollment does not usually require significant outlays from enrollees in terms of copayments or deductibles. Individuals able to afford premium payments on an Obamacare plan might find it more cost effective to enroll instead, depending on their particular circumstances.
How do I get Obamacare?
Obamacare, implemented by President Obama, has simplified accessing affordable health coverage and protected consumers against abusive insurance company practices. It expanded Medicaid coverage, removed lifetime monetary caps on coverage, banned insurance companies from denying preexisting conditions or cancelling coverage and created state-based marketplaces where individuals and small businesses could purchase healthcare at more reasonable costs.
Under the American Rescue Plan Act, Americans making up to 400% of poverty level will be eligible to receive subsidies that will assist them with paying their monthly premiums for Obamacare plans. These changes will benefit millions of people while significantly lowering costs for many families.
Obamacare enrollment season typically runs from November 1 through January 15. If certain life events, like losing your job or having a child, occur outside this window, you may qualify for special enrollment periods that allow for outside enrollment periods to enroll outside of open enrollment window.
