The Affordable Care Act (ACA), also known as Obamacare, is a healthcare reform law enacted in 2010 to improve access to affordable healthcare for all Americans. The law has had a significant impact on the health insurance industry and the way Americans obtain and pay for healthcare. In this blog post, we will discuss what the ACA means for your health insurance.
Guaranteed Coverage
- One of the most significant changes brought about by the ACA is guaranteed coverage for individuals with pre-existing conditions. Under the law, insurance companies are required to cover all individuals, regardless of their health status. This means that if you have a pre-existing condition, you cannot be denied coverage or charged more for your insurance.
Essential Health Benefits
- The ACA mandates that all health insurance plans must cover certain essential health benefits. These benefits include services such as emergency services, hospitalization, prescription drugs, preventative care, and mental health and substance abuse services. Insurance companies cannot deny coverage for these essential health benefits.
Subsidies for Low-Income Individuals
- The ACA provides subsidies for low-income individuals and families to help them afford health insurance. Individuals who earn between 100% and 400% of the federal poverty level may be eligible for premium tax credits to help offset the cost of their insurance. In addition, those who earn less than 250% of the federal poverty level may be eligible for cost-sharing subsidies that help lower their out-of-pocket costs, such as deductibles and copayments.
Individual Mandate
- The ACA includes an individual mandate, which requires all Americans to have health insurance or face a penalty. While this mandate was repealed in 2019, it is still in effect for the 2021 tax year. This means that if you did not have health insurance in 2021, you may be subject to a penalty when you file your taxes.
Marketplace Exchanges
- The ACA created Marketplace exchanges, where individuals and families can purchase health insurance plans that meet the law’s requirements. These exchanges allow individuals to compare plans and prices and choose the best option for their needs. In addition, the exchanges provide access to the premium tax credits and cost-sharing subsidies mentioned earlier.
In conclusion, the ACA has brought about significant changes to the health insurance industry. It has expanded coverage to individuals with pre-existing conditions, mandated essential health benefits, provided subsidies for low-income individuals, implemented an individual mandate, and created Marketplace exchanges. Understanding these changes is essential for choosing the right health insurance plan for your need. At HIG, we specialize in finding our customers the best ACA plans on the market. Contact US today to get started.
