Understanding the Affordable Care Act

In 2014, the Affordable Care Act is about to take place across the United States. A great change is taking place with America's healthcare and this leaves many people scared or confused with what is about to happen. There will be four main ways that an individual will receive healthcare when this act goes into effect.

Employer

Many people possess health insurance through a company already. Their insurance will not change very much and there will be additional benefits. These benefits include caps on how much you have to pay out of pocket, as well as free preventative care.

Smaller companies will be encouraged to purchase health insurance by setting up insurance marketplaces so they can choose their own plan. Some businesses will be offered temporary tax breaks.

For larger companies (50 or more employees), the government is going to require that they provide health insurance for full-time workers, or the employer will have to pay a penalty. Insurers will not be able to inflate insurance prices if some employees are already sick.

Government

Seniors have nothing to worry about in relation to Medicare. The law has already started helping with prescriptions and better preventative care and this will continue. Medicaid will be expanding to cover poor adults that were ineligible before. If you're income is up to 138 percent of the poverty level ($15,856 for a single person), you will most likely be covered in a private insurance plan. However, each state will be able to decide if they want to be a part of expanding Medicaid. The states that approve of it will have the majority of the costs covered, while the states that do not may leave the poor with the same options that they have today.

Buying Your Own

If you plan on buying your own insurance because you find your employer's coverage too expensive, you will be able to purchase insurance through health insurance marketplaces. Through these marketplaces, you'll be able to shop for a specific insurance plan that suits your needs at a cost you can afford. Even though these plans differ, they will still cover hospital visits, doctor visits, maternity care and prescriptions. The government will provide most people with a tax credit to make insurance more affordable to those who have no other options (if your income is up to 400 percent of the poverty level, which constitutes $70,120 for a family of three).

These marketplaces will also ensure that insurance companies operate under strict rules, such as offering insurance to everyone even if they have a pre-existing condition, and men and women will be able to pay the same cost. Insurance costs for older people will decrease and the younger will have to pay more; however, younger people will be able to stay on their parent's insurance until 26 and can purchase low-budget catastrophic plans until the age of 30.

Going Without

You can't just wait until you are sick to buy insurance. There are certain enrollment periods in which you can only get health insurance and if you go to the doctor without insurance, you will be charged a fine. However, if you really can't afford to buy insurance, the government can waive the penalty. Therefore, there is no need to panic.

Many people are concerned that their taxes will rise significantly due to changes in healthcare, but a lot of these taxes are going to come from the health industries themselves, the wealthy (obtaining better and more secure insurance plans), and hospitals and insurance companies that participate in Medicare will get paid less. With a better understanding of the 2014 Affordable Care Act, please feel free to visit our website at Phoenix Family Medical Clinic if you need health care information. Alternatively, please call us at 602-773-5600 to set up your appointment today!

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