ObamaCare – Affordable Care Act

We are aware that the HealthCare.Gov site is up and down at times. And, if you call their toll free number they will tell you to go to the website. IF you want to avoid all that frustration, please send your information to us on the Contact Form to the right and we will contact you as soon as we can enter your information for you.

ObamaCareObamaCare, or the Affordable Care Act (ACA) is a Federal law that was signed by President Obama on March 23, 2010. The Affordable Care Act aims to “increase the QUALITY and AFFORDABILITY of health insurance, lower the uninsured rate by expanding public and private insurance coverage, and reduce the costs of healthcare for individuals and the government.” Let’s explore some of the mechanisms of this Act.

ACA Mandates

A “mandate” is an “official order to do something.” In the case of ObamaCare, everyone must either buy health insurance or pay a penalty. The individual mandate is done to increase the size and diversity of the insured population – in other words there needs to be enough people (health or sick) paying premiums to cover those who use the system. And, by having the penalty, income is even generated from those who do not buy the insurance.

ObamaCare Subsidies

Family of 4 Health Care SubsidyA “subsidy” is financial support extended to an individual or a group (based on economic factors) with the aim of promoting some benefit or social outcome for that individual or group. For example, for a family of 4 living at 150% of the poverty level ($35,325) in the United States (25 year old parents, no tobacco use, with 2 children) the approximate annual premium is $9,893 and the family would receive a $8,480 subsidy which would mean they would only pay $1,413 per year ($117.75/month) for the “Silver Plan” coverage. They could opt for the Bronze plan and pay nothing, but may have higher out-of-pocket costs during the year.

To see what your subsidy might be, click on this Subsidy Calculator by the Henry J. Kaiser Family Foundation.)

Bronze, Silver, Gold, & Platinum Plans

Health Insurance coverages generally follow 4 different plans, based on the maximum amount of out-of-pocket expenses you will pay for approximately the same “essential health benefits.” The plans are generally as follows:

  • Bronze Plan – 40% Out of Pocket – 60% Insurance Paid
  • Silver Plan – 30% Out of Pocket – 70% Insurance Paid
  • Gold Plan – 20% Out of Pocket – 80% Insurance Paid
  • Platinum Plan – 10% Out of Pocket – 90% Insurance Paid

Health Insurance Exchanges

Under ObamaCare, federal and state based insurance exchanges will be setup where individuals and small businesses may purchase private insurance plans. These exchanges will be regulated, virtual marketplaces administered by the federal or state government. In Alabama no state exchange will be setup therefore the federal exchange will be used. Individuals may purchase insurance through these exchanges beginning October 1, 2013 and lasting through March 31, 2014.

We encourage you to contact Stephanie Duran TODAY toll free at (877) 996-2249 or local at (334) 521-2249 to review your options for health insurance under ObamaCare or you can also fill out the contact form to the right.

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