After several decades of trying to get a comprehensive health care law passed the feat was finally passed in March of 2010 with the Patient Protection and Affordable Care Act (ACA). Championed by President Barack Obama, the act’s main components take full effect January 1, 2014. But, many Americans are still very confused as to how the new health care regime will work, and what it will mean for them. This article will help clear up much of the confusion.
The cornerstone of the Patient Protection and Affordable Care Act is that all United States citizens will be required to carry health insurance as of January 1, 2014. Before the insurance mandate goes into effect, citizens will have the ability to compare and select among various healthcare plans as of October 1, 2013. For those who do not carry health insurance, the government will impose a monetary penalty in the form of a federal tax. This tax will be approximately 1% of their adjusted gross income for the first year and up to 2.5% by year three, and will affect those who have not enrolled in healthcare coverage by the end of open enrollment on March 31, 2014. The maximum tax penalty will be set at $47.5 per child, $95 per adult, and $285 per household or 1% of the adjusted gross income, for the first year. December 15, 2013 will serve as the cut-off date for paying your first premium, so that you will have enough time to ensure you are covered by January 1.
The law has outlined or standardized how the health insurance plans will look and what benefits they will offer. All plans being offered after January 1, 2014 will fall into one of the following categories:
These plans will be offered on and off of the healthcare exchange or market place. There will be more plan options offered off the exchange to choose from, however, if Americans qualify for a Premium Subsidy then they will have to purchase the plan on the exchange. Plans can be purchased directly from the exchange or with the help of a certified insurance agent, such as Heidi Olsen. The exchanges will only show plan options that are offered on the exchange, whereas, insurance agents can show plan options both on and off the exchange.
The cost of the health care plan you choose is affected by several factors, such that not all people who select the same plan will pay the same premiums. Factors, which affect your premium, include your age, your income, the size of your family and where you live.
Give Heidi Olsen Insurance a call today to help you find the plan that is right for you and your situation.
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