The Affordable Care Act, also known as the ACA or Obamacare, is a federal statute that President Barack Obama signed in to law in 2010. This act gives more people access to affordable health care and lets them get insurance that will cover any pre-existing conditions and any current medical conditions they might have. Though the plan did help some people get health insurance, it also led to an increase in premiums in many states, which means that people pay more for the health insurance than they need.
What is the ACA?
The ACA provides affordable health care for anyone who is a citizen of the United States. They can use their health insurance to pay for visits to a doctor, treatments from specialists and even emergency room visits. Some plans will also cover the OB/GYN visits that pregnant women need, and other plans cover dental and vision costs too. The ACA also requires that employers who have a specific number of employees purchase insurance plans or offer insurance to their workers. This part of the ACA only applies to those who work full-time hours.
How Do You Get Coverage?
Getting coverage through the ACA is fairly easy. You can visit the official website and search the marketplace for insurers who cover people in your city or state. The marketplace then lets you view plans and policies based on the type of coverage you need, the premium costs or the monthly costs. You can also use the site’s calculator to get an idea of how much the government will charge you if you do not have health insurance and whether you must have insurance based on your total annual salary and family size.
Rising Premiums
While some thought that the Affordable Care Act would bring down the cost of insurance, the opposite happened in many states. Premiums refer to the amount of money you must spend on your health insurance every year before your policy will start. Many plans require that you pay premiums of around $100 or more each month and that you pay $5,000 or more in out of pocket costs before your insurance will cover any of your medical expenses. According to the Henry J. Kaiser Family Foundation, insurance premiums increased by more than 20% in Washington DC, Oregon and Tennessee. The foundation also found that insurance premiums increased by more than 10% in a single year in states like Virginia, Colorado and New York.
Can You Not Pay?
After looking at how much insurance will cost through the ACA marketplace, you may decide to skip buying a plan. When you file your taxes the following year though, you may face a steep penalty. The government will look at the size of your family and the amount you or you and your spouse made to determine if you should pay a penalty and how much you should pay. You’ll either pay that penalty yourself or let the federal government take that penalty out of your tax refund.
President Barack Obama created the ACA as a way to increase the number of American citizens who had access to health care. While it helped some, it caused problems among others as employers fired long-time workers or cut back on their hours. The Affordable Care Act also led to increased insurance premiums in some states.
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